What documents and information must Blanket Licensees deliver to The MLC?

The documentation required depends on the changes, if any, being made to usage and associated royalties. The MLC’s website hosts detailed information pertaining to DSP usage reporting requirements, including specifications, templates, and guidelines available here.

Adjustments to Historical Period (2018-2020)

Scenarios: Statement of Adjustment of a Cumulative Statement of Account

Scenario 1: No Changes

In this scenario, a DSP will simply re-certify information provided in the Cumulative Statement of Account and any subsequent adjustments (i.e., no further adjustments will be made). A DSP can do so by completing and delivering the PIII Certification of No Changes (2018-2020) document available here.

Scenario 2: Changes to Royalty Pool Information Only

In this scenario, a DSP intends to adjust only information related to inputs to royalty pool calculations (“Royalty Pool Information”) previously provided via the Cumulative Statement of Account (and any subsequent adjustments). In other words, a DSP will adjust revenue information, such as total cost of content (“TCC”) and performance amounts but will not adjust previously provided track/usage level information (“Usage Information”).

The DSP must submit files containing new Royalty Pool Information for all months in any fiscal year to which the adjustment pertains. A DSP can do so by completing and delivering the PIII Cover Sheet - Adjustment of Cumulative Statement of Account document available here. 

Because the DSP is not adjusting Usage Information, the DSP should contact The MLC’s DSP Relations team (DSP.Relations@themlc.com) and request a list of the names of the files that comprised the DSP’s original Cumulative Statement of Account for Making and Distributing Phonorecords relevant to the time period of January 2018 through December 2020. The MLC will provide this list, and upon the DSP’s receipt and confirmation, the DSP may include this information (i.e., The MLC file names) in the corresponding cover sheet.

Scenario 3: Changes to Royalty Pool Information and Usage Information (no changes to number of Offerings reported)

In this scenario, a DSP intends to adjust both Royalty Pool and Usage Information previously provided via the Cumulative Statement of Account.

The DSP must submit a Statement of Adjustment of a Cumulative Statement of Account containing new Royalty Pool Information and new Usage Information.

The DSP must deliver adjusted Royalty Pool Information and adjusted Usage Information in the same format as delivered in the original Cumulative Statement of Account.

Scenario 4: Changes to Royalty Pool Information and Usage Information (previously aggregated Offerings reported separately)

In this scenario, a DSP intends to adjust both Royalty Pool Information and Usage Information previously provided via the Cumulative Statement of Account and further intends to report previously aggregated Offerings as separate Offerings (for example, where a DSP previously reported a family plan and an individual plan together as a single Offering, the DSP is required to report each plan as a separate Offering).

The DSP must submit a Statement of Adjustment of a Cumulative Statement of Account containing new Royalty Pool Information and new Usage Information.

The DSP must deliver adjusted Royalty Pool Information and adjusted Usage Information in the same format as delivered in the original Cumulative Statement of Account.

Adjustments to Blanket License Period (2021-2022)

Scenarios: Reports of Adjustment Under Compulsory Blanket License for Making and Distributing Phonorecords

Scenario 1: No Changes

In this scenario, a DSP will simply re-certify information provided in Annual Reports of Usage delivered to The MLC in 2021 and 2022 and any subsequent adjustments (i.e., no further adjustments will be made). A DSP can do so by completing and delivering the PIII Certification of No Changes (2021-2022) available here. 

Scenario 2: Changes to Royalty Pool Information Only

In this scenario, a DSP intends to adjust only information related to inputs to royalty pool calculations (“Royalty Pool Information”) previously provided via the 2021 and 2022 Annual Reports of Usage (and any subsequent adjustments). In other words, a DSP will adjust revenue information, such as total cost of content (“TCC”) and performance amounts but will not adjust previously provided track/usage level information (“Usage Information”).

The DSP must submit files containing new Royalty Pool Information for all months in any fiscal year to which the adjustment pertains. Please note that such files are referred to in the PIII Technical guidelines for DSPs making adjustments pursuant to 210.27(k) for Phono 3 Period (“Technical Specifications document”) as “DDEX HEAD and SYxx records.” The Technical Specifications document is available here.

Because the DSP is not adjusting Usage Information, the DSP should contact The MLC’s DSP Relations team (DSP.Relations@themlc.com) and request a list of the names of the files that comprised the DSP’s 2021 and 2022 Annual Reports of Usage. The MLC will provide this list, and upon the DSP’s receipt and confirmation, the DSP may include this information (i.e., The MLC file names) in the corresponding cover sheet.

Scenario 3: Changes to Royalty Pool Information and Usage Information (no changes to number of Offerings reported)

In this scenario, a DSP intends to adjust both Royalty Pool and Usage Information previously provided via the Cumulative Statement of Account.

The DSP must submit a Report of Adjustment containing new Royalty Pool Information and new Usage Information.

The DSP must deliver adjusted Royalty Pool Information and adjusted Usage Information as described in the Technical Specifications document.

Scenario 4: Changes to Royalty Pool Information and Usage Information (previously aggregated Offerings reported separately)

In this scenario, a DSP intends to adjust both Royalty Pool Information and Usage Information previously provided via the 2021 and 2022 Annual Reports of Usage and further intends to report previously aggregated Offerings as separate Offerings (for example, where a DSP previously reported a family plan and an individual plan together as a single Offering, the DSP is required to report each plan as a separate Offering).

The DSP must submit a Report of Adjustment containing new Royalty Pool Information and new Usage Information.

The DSP must deliver adjusted Royalty Pool Information and adjusted Usage Information as described in Technical Specifications document.