After we completed the matching process for this first set of historical unmatched data, we began distributing historical royalties that we were able to match from this first set, starting with uses for which DSPs did not previously pay any royalties. The MLC began distributing matched historical royalties for uses that took place between 2007 and 2017 in our June 2022 royalty distribution.
As we completed our internal matching processes for additional sets of historical unmatched data from other DSPs, we added the remaining unmatched data from these additional sets to our database so that Members can search that data using the Matching Tool. Then we began distributing the “matched” historical royalties from these other DSPs, too — again, starting with uses that took place during the Phonorecords II (Phono 2) period, for which DSPs did not previously pay royalties to any rightsholders.
Because the rates for the Phonorecords III (Phono 3) rate period had still not been finalized, we started by distributing matched royalties for historical uses that took place during the earlier rate periods for which the rates had been finalized (i.e., the uses that took place from 2007 to 2017). We began with fully unmatched uses, where no payment had been made to any rightsholder. We worked through almost all of these uses by the end of 2022, distributing approximately $11.4 million (or 21.6%) of the roughly $53.4 million in unmatched royalties we received for these older periods. We then expanded to include partially unmatched uses for which DSPs had paid some, but not all, of the royalties.
In March 2023, we began our second pass at processing the usage from these periods, by processing those uses for which DSPs previously paid some, but not all, of the royalties owed for these uses. The first matched royalties from this second pass appeared on statements issued in our March 2023 distribution.
As of June 2023, we have increased the matched royalties that we have distributed for these older uses to more than $24 million, or 45% of the royalties we received for these older periods.