Unlocking Unclaimed Royalties With DURP: A Conversation with Dae Bogan of the Mechanical Licensing Collective (The MLC)

The Mechanical Licensing Collective (The MLC) has taken a significant step towards modernizing royalty distribution with the introduction of the Distributor Unmatched Recordings Portal (DURP) . This innovative platform promises to streamline the way royalties are managed, ensuring that artists and rights-holders are accurately compensated in today’s digital music landscape.

At the forefront of this innovative development is Dae Bogan, Head of Third-Party Partnerships at The MLC . Bogan's deep expertise and foresight have been instrumental in shaping DURP, transforming it from an ambitious idea into an indispensable industry tool. His approach has been to tackle the complex issues of royalty management head-on, creating a solution that benefits the entire music ecosystem.

In our latest FAST FWD interview, Bogan offers an exclusive insight into the creation and functionality of DURP. We will discuss the challenges of unmatched recordings and how DURP is designed to address these issues, improving the accuracy and efficiency of royalty distribution. Check out the full interview below:?

When you first started building the MLC's Distributor Unmatched Recordings Portal (DURP), can you share with our readers what sort of challenges or complexities you had to overcome to successfully bring this portal to the mass market?

The Music Modernization Act limits the type of companies that can engage with The MLC as it pertains to the blanket digital audio mechanical license. Digital service providers such as Spotify and Apple Music can engage with The MLC, but music distributors cannot. Prior to conceptualizing the DURP, I spent quite a bit of time meeting with executives at some of the top independent music distributors and consulting with some of my colleagues to figure out if and how The MLC can engage with music distributors. Music distributors are not music publishers, so they can’t become a member of The MLC as a music distributor alone. Also, the blanket license cannot be utilized by music distributors to meet its mechanical licensing obligations. That limited what we could do in the beginning besides asking distributors to help generate awareness of The MLC, which several were quick to do. Once the blanket license went into effect and The MLC’s operations went into full swing, I began to look at some of the information gaps in the supply chain that could be addressed to help us find songwriters and match recordings. The gap that I was interested in was the relationship between independent artists who own the copyrights in their songs and the music distributors that they rely on to distribute their recordings. These recordings are later reported to The MLC by DSPs, but the musical works associated with the recordings may not always be registered. This leads to unmatched recordings and millions of dollars in unclaimed royalties. Thinking about how to solve this is where the concept of the DURP began.

Can you describe the process for distributors to use DURP? How user-friendly is the platform, and what kind of support or resources are available to help them navigate and make the most of it?

Eligible music distributors can apply to access a DURP account to view a subset of unmatched recordings that we’ve identified has been distributed by the company. These recordings have accrued a minimum of $10 in unpaid royalties, but some may have racked up hundreds or thousands of dollars in unpaid royalties. The platform is very user-friendly. When a user logs in, they are presented with easy-to-read charts that highlight the change in estimated number of unmatched recordings and estimated value of unpaid royalties. They will get access to a custom dashboard that shows them the publicly available data for sound recordings they have distributed for which The MLC has accrued unmatched mechanical royalties. They are also presented with a Top 20 unmatched recordings list, which are the highest value recordings. The DURP also includes reports that breakdown unmatched recordings details by sub-brand or distributed label and a powerful data search and export tool. Distributors can export the data and use their own systems to cross-reference to find their customers whose recordings have been reported in the DURP. We have a training video and support form inside the DURP. I’ve also conducted several private webinars and training sessions with distributors and continue to do so by request.

The purpose of the MLC's DURP was to help distributors find unmatched data for the sound recordings they’ve distributed, which according to a 2022 Billboard article on your launch was to help bring "more royalties down to indie acts". Can you give us a little more insight into how that mission is going? Has the MLC been able to reduce the amount of unclaimed royalties??

We are very pleased with how many distributors have responded to the DURP. I’ve had reports from some companies that have matched hundreds of artists to unmatched recordings and have conducted internal outreach via email and notifications within their own artist dashboards about unclaimed royalties. Symphonic Distribution, CD Baby, Empire, and many others have communicated to their customers about The MLC. TuneCore recently invited me to talk about the DURP to its customers while it highlighted how TuneCore and TuneCore Music Publishing collaborate to process the data that it gets from the DURP and encourage its customers to take action. You can watch the recording on YouTube . I’ve heard reports from smaller distributors that have multi-rights deals with its artists that have enabled the registration of hundreds of new musical works on The MLC making it possible for us to pay out thousands of dollars in previously unpaid royalties. The DURP is working, but we welcome more distributors to come on board.

In the early days of DURP's launch, it was reported that your dashboard helped locate $20,000 in previously unpaid royalties for Australian artist R?NIN. Since those early days, have there been other artists like R?NIN who have seen this much success due to the MLC's DURP??

There have definitely been more artists who’ve benefited from the DURP, however, I do not work closely with them like I did with R?NIN. R?NIN’s case was an excellent use case and part of the initial demonstration of the DURP’s impact. We sought approval from R?NIN and his manager before publicly mentioning him and his receipt of royalties. We are not working with individual artists as the DURP scales, but rather we are supporting independent music distributors and their outreach efforts to help bring awareness of the issue and drive new members and newly registered musical works to The MLC. All of this is being accomplished as we have increased DURP membership to over 65 distributors representing over $60M in estimated unpaid royalties.

Fast Facts: Data

• Sephora's "Sephora Sounds" initiative, a music collective fostering emerging artists on social media, with a focus on TikTok, includes over 55 artists, notably BIPOC and female. Although there has been minimal impact on TikTok and YouTube following initially, Chartmetric data reveals that participating artists, such as Kinck, Bronze Avery, Halima, Sharl, and Ark Woods, collectively gained an average of 38,612 new monthly listeners 30 days post-announcement. The campaign strategically taps into TikTok's influence, as evidenced by the hashtag #SephoraSounds accumulating 2.5 million views , and sharing TikToks featuring artists like SuperKnova and Precious resulted in significant Spotify stream increases.
• In 2022, the value of global music copyright reached $41.5 billion , exceeding the $40 billion mark for the first time, with a $5 billion annual increase evenly shared between recorded music and music publishing. Record labels accounted for $26 billion, a 62.7% share, while music publishers increased their share to 37.3%, attributed in part to a lag effect in licensing to new streaming platforms and early accruals from the U.S. Copyright Royalty Board's royalty increase. The estimate, which incorporates IFPI's figures, could be low, with MIDiA Research suggesting a global recorded music value of $18.9 billion in 2022.
• Spotify released a study showing video podcasts are gaining popularity, with Comedy emerging as the top category for both watching and listening, comprising 27.55% of viewership. Other popular categories include Leisure (16.21%), which includes Gaming and Hobbies, Society & Culture (12.01%), Business (10.31%), and Technology (7.67%). Content creators are encouraged to experiment with video , especially in these categories, to engage with their audience and leverage promotional opportunities on social media, with the option to expand reach by publishing video podcasts on platforms like Spotify.
• In 2022, there were notable spikes in people starting to listen to new podcasts in January, March, July, and October, coinciding with seasonal events such as the new year, the beginning of summer, and the holiday season. To capitalize on these peaks, podcast creators are advised to invest more in marketing strategies during these months, including increasing social media presence and planning cross-promotion with other creators. Additionally, customizing show pages on Spotify for better discoverability, using Podcast Previews, and highlighting engaging episode clips can enhance the overall visibility and appeal of podcasts during these high-engagement periods.
• In a recent study, 73% of podcast listeners expressed interest in interacting more with their favorite hosts. Q&As on Spotify offer a way for hosts to engage with fans directly on the episode page. Customized questions relevant to the content are 8.7 times more likely to receive responses than default options, and publishing responses on the show page increases engagement, with questions having published responses having a 2.3 times higher response rate. Podcast creators are encouraged to tailor questions based on episode content to enhance engagement and consider reading aloud the responses during episodes to inspire further listener participation.

Fast Facts: Platforms & Technologies?

• Instagram has introduced a new feature allowing users to add song lyrics to their Reels , similar to the existing option in Stories. When incorporating a music clip into a Reel, users can now select the lyrics option, displaying the lyrics as text on screen. Instagram aims to enhance music engagement on the platform, following the trend set by TikTok, and the new lyrics sticker is now available to all Instagram users.
• LinkedIn has surpassed one billion members and introduced new artificial intelligence (AI) features for some premium subscribers. The AI tools aim to streamline the job search process by analyzing users' feeds and suggesting relevant opportunities based on their profiles. Premium users will also receive AI-driven suggestions for profile writing and engagement with potential hiring managers, following the trend of social networks integrating AI features in recent months.
• Snapchat has introduced a new feature called the "Paid Partnership Tag" to help Snap Stars and Talent Reps easily disclose sponsored content . The feature allows users to add required sponsorship disclosures to their public content, such as Public Stories, Spotlight, Snap Map Stories, and Saved Stories, with a simple click. Additionally, users can now include their Brand Partner within the Paid Partnership tag, enabling brands to access performance metrics associated with Sponsored Snaps and potentially boost the Sponsored Content beyond the user's audience.
• TikTok is closing its Creator Fund, launched in 2020 with a billion-dollar commitment to creators, and shifting its focus to the Creativity Program, which it began testing earlier this year. The Creativity Program, which links payments more directly to views, aims to provide more predictable and potentially higher earnings for creators , with payments up to 20 times more than the Creator Fund. TikTok's move is part of its effort to refine its monetization options for creators and encourage longer-form content on the platform.
• Instagram has introduced a new feature allowing users to share post replies in Stories , aiming to enhance community engagement. The option lets users swipe across a reply and share it in a sticker format within their Stories composer. Instagram hopes this will facilitate meaningful conversations and enable creators and brands to highlight top comments to a broader audience, potentially boosting overall engagement.
• TikTok is expanding its TikTok Marketing Partners Program to include ad agencies, enabling brands to access local experts for TikTok campaign creation. After testing the program with ad agency partners in Asia, TikTok has initiated the global rollout of agency partners officially endorsed for their platform expertise . The move aims to provide brands with a broader range of options for optimizing TikTok campaigns, with approved agency assistance offering insights and support for media-buying and creative optimization needs.
• Spotify is offering its Premium subscribers access to over 200,000 audiobooks for free , allowing users to listen to 15 hours of audiobooks per month. Previously, users had to pay separately for access to audiobooks within the Spotify app. The move aims to enhance the premium subscription offering, with popular titles including bestsellers and classics, and reflects Spotify's recognition of the growing popularity of audiobooks among Gen Z and Millennials, according to a survey conducted by the platform in September.
• YouTube is testing a Shorts discovery option by introducing a random feed prompt , similar to TikTok's "For You" feed, guiding users towards Shorts content. The new feed appears to show users clips based on various signals, including watch history, subscribed creators, and video likes, mirroring the TikTok system. This experiment aims to make YouTube more of a random entertainment option, potentially increasing usage and engagement, and comes as Shorts experiences a significant uptick in usage.

Fast Facts: Brand Campaigns To Know?

• HSN announced the launch of Chaka Khan's debut fragrance , "Chaka by Chaka Khan," which embodies the singer's legacy and spirit of female empowerment, featuring a complex blend of floral, spicy, and earthy notes. The fragrance, presented in an iconic microphone-shaped bottle, reflects Khan's influence in pop culture and will be exclusively available on HSN.com . To celebrate the launch, Chaka Khan will appear live on HSN to share her life stories and the inspiration behind her fragrance, with products priced between $35 and $90.
• Verizon and UNINTERRUPTED, co-founded by LeBron James, have launched "Verizon Run the Playlist ," a campaign that combines NFL team spirit with music, offering Apple Music playlists curated by NFL players from all 32 teams. The collaboration includes a digital content series featuring NFL stars and musicians discussing the overlap of sports and culture, with episodes to be available on UNINTERRUPTED's YouTube channel in December. In addition, the campaign will enhance the NFL game experience by integrating these playlists into pre-game broadcasts for select games, highlighting the personal music choices of athletes.
• Mastercard has announced a multi-year partnership with Live Nation to provide its cardholders in 19 markets across Europe and Asia with exclusive access to live music events, including presale tickets, premium seats, and VIP experiences through priceless.com . The collaboration, which underscores music's importance in people's lives, extends Mastercard's offerings to include diverse benefits and supports the Priceless Planet Coalition's environmental goals. Cardholders can also contribute to the restoration of trees when purchasing concert tickets during Mastercard presale events, reinforcing the partnership's commitment to positive environmental impact.?
• Cracker Barrel Old Country Store has teamed up with Dolly Parton to promote their new Cracker Barrel Rewards program and celebrate the release of Dolly's first-ever rock album, "Rockstar." The "Rewards That Rock" campaign features the chance for rewards members to win one of 667 Dolly-designed Rockin' chairs. The album "Rockstar" will be available at Cracker Barrel stores from November 17, and starting December 5, a limited number of Dolly Rockin' Chairs will also be for sale. Dolly Parton appears in ads for the campaign, showcasing the rewards experience to the tune of her new album's title track. The campaign reflects a mutual appreciation between the brand and the country music icon, extending their long-standing relationship.?

Fast Facts: Music News To Know?

• Sony Music Entertainment has filed a lawsuit against the cosmetics brand OFRA for using music by artists such as Mariah Carey, Britney Spears, and others in their social media advertising without permission. The lawsuit alleges that OFRA Cosmetics has repeatedly infringed on Sony's copyrighted material to boost its social media presence and product sales, even after Sony reached out to the company about the unauthorized use. The complaint details the use of at least 329 videos featuring Sony Music's recordings and seeks to hold OFRA responsible for willful copyright infringement and to compensate for the substantial harm caused to Sony Music and its artists.
• Major record labels are revising their contracts to include longer waiting periods before artists can re-record their music, a move spurred by Taylor Swift's successful re-recordings that outperformed the originals and regained control over her masters. The new contractual terms proposed by companies like Universal Music Group, Sony Music Entertainment, and Warner Music Group could extend these waiting periods to between 10 and 30 years. Artists and their lawyers, noting the rarity of such re-recordings actually taking place, are pushing back against these more restrictive clauses.
• Streaming service Tidal has introduced a new tool, Tidal Collabs, to help artists discover and connect with potential collaborators . Integrated into Tidal Artist Home, the platform designed for artists, the tool leverages data and editorial expertise to recommend high-quality collaborators in a tailored and safe environment. Tidal has partnered with Jermaine Dupri for a Collabs Spotlight contest, allowing matched artists in the US to compete for studio time, mentorship, and marketing support for a collaborative track.
• Spotify is reportedly set to launch a two-tier royalty system in Q1 2024 , following the recent UMG/Deezer streaming royalty proposal. The move suggests that while the Deezer trial may have been a way to soften industry opinion, decisions had already been made elsewhere. The two-tier system is seen as a way to allocate streaming revenue differently, with a focus on directing more revenue to bigger artists while reducing the market share of long-tail artists.
• The music industry's shift towards viral trends and short-form platforms has led to a lack of artist development, with creators often launched onto stages they're not prepared for, according to industry insights. The focus on viral hooks for social media over live performance experience has created a gap in talent development.Thus, there is a need for more investment in infrastructure that develops and sustains elite talent , similar to the approach of HYBE Entertainment, and highlights the importance of recognizing and supporting both elite and non-elite artists.
• musicFIRST has partnered with Dionne Warwick to launch the Music Fairness Action campaign , advocating for fair compensation for artists from AM/FM radio plays. The campaign seeks to amplify the voices of music artists and fans in support of the American Music Fairness Act (AMFA), a bipartisan effort aiming to rectify the lack of payment for artists on AM/FM radio, the only music platform in the U.S. that does not compensate artists for their recordings. The initiative coincides with Music Fairness Awareness month, highlighting the decades-long issue, and urges Congress to pass the AMFA to ensure performance royalties for creators on AM/FM radio.
• An Atlanta judge ruled that Young Thug's rap lyrics can be used as evidence in the upcoming criminal trial against him and alleged gang members , rejecting claims that it would violate the First Amendment. The trial involves allegations that Young Thug and his "YSL" were part of a violent Atlanta gang involved in crimes over a decade. The judge stated that the lyrics would be used to prove other actions the defendants may have been involved in, not as an attack on free speech, while the defense argued it would criminalize the output of a prolific songwriter and have a chilling effect on free speech.

Fast Facts: New Music To Know?

• Ghosts 'n' Stuff" (ft. Rob Swire) [Jauz Remix] – Deadmau5: Jauz, a Bay Area electronic DJ and producer, has released a remix of deadmau5's iconic single "Ghosts 'n' Stuff," featuring Rob Swire. "Ghosts 'n' Stuff" is one of the most recognizable tracks from deadmau5' catalog. Originally released in 2008 as an instrumental version with its vocal version featuring Pendulum's Rob Swire following in 2009, the double-platinum anthem appeared on deadmau5' album For Lack of a Better Name. The remix maintains the original elements but adds Jauz's unique twist, and it is available on mau5trap.??
• Eveline – Gabe Lee: Gabe Lee celebrated the four-year anniversary of his debut single, "Eveline," by releasing a reimagined version that infuses a bluegrass-leaning production with a driving banjo and fiddle , creating a more upbeat and fuller sound. Recorded at Nashville's Sound Emporium, the new rendition aims to breathe new life into the song, providing a fresh perspective on the sweet yet regretful track that reflects on leaving things behind.
• SET YOU FREE – Chase Plato: Detroit native Chase Plato emerges as a standout artist with his latest track, "SET YOU FREE ," a song that blends hooky guitar riffs, synths, and dynamic percussion. The song captures the essence of a late-night drive, inviting listeners to join in a euphoric chorus.