Within Metadata

Where unpaid royalties wait for better data

Unmatched royalty pools show how usage can generate money before the industry knows which work or rightsholder should receive it.

On this page

  • How royalties become unmatched
  • What matching can recover later
  • Why old gaps keep returning
Preview for Where unpaid royalties wait for better data

Introduction

Unmatched royalty pools are the music industry’s most visible measure of metadata failure. They form when money is generated from streams, downloads or other uses, but the systems responsible for paying royalties cannot confidently connect that usage to the correct musical work, recording or rightsholder. The result is not merely an administrative delay. Large unmatched pools reveal exactly where the links between recordings, compositions, ownership records and usage reports have broken down, creating a financial backlog that can persist for years. In that sense, unmatched royalties are less a separate problem than a diagnostic tool: they show where music metadata is incomplete, inconsistent or missing altogether. [Mechanical Licensing Collective]pitchfork.comThis follows the directives of the Music Modernization Act (MMA), which requires the MLC to distribute unmatched royalties to rightful ri…

Unmatched Pools illustration 1

How royalties become unmatched

A royalty becomes unmatched when a payment system receives evidence that music was used but lacks enough reliable information to determine who should be paid. This can happen even when the stream itself is recorded perfectly.

The most common causes are surprisingly mundane:

  • Missing songwriter or publisher registrations.
  • Incorrect ownership shares.
  • Inconsistent song titles across databases.
  • Missing links between recording identifiers (ISRCs) and composition identifiers (ISWCs).
  • Typographical errors in creator names.
  • Conflicting ownership claims from different parties. [Fair Trade Music International]fairtrademusicinternational.orgFair Trade Music InternationalUnmatched royaltiesA songwriters' guide to the MLC unmatched royalties issue. Learn how to find out if some… [lumoza]lumoza.ioLumozaMusic Royalties Explained: What They Are and How…28 Jan 2026 — Missing or inconsistent metadata (titles, ISRC, ISWC, writer shar… These problems accumulate because the music industry does not operate from a single authoritative database. Labels, distributors, publishers, collecting societies and streaming services often maintain separate datasets that must be reconciled. When identifiers or ownership records do not align, automated systems cannot confidently distribute money.

Research and industry reports repeatedly point to the same weak point: matching recordings to the underlying musical works and their owners. A stream may clearly identify a recording, yet the publishing royalty cannot be paid until the composition and ownership information are confirmed. [SSRN]papers.ssrn.comSSRNMusic Streaming Metadata Mapping ReportMatching ISWC and ISRCs is not their priority which remains ensuring recording metadata to be…

A large dataset that exposed the scale of the problem

The clearest illustration comes from the United States Mechanical Licensing Collective (MLC), which was created under the Music Modernization Act to administer digital mechanical royalties.

When streaming services transferred historical unmatched royalties to the MLC in 2021, the amount exceeded $424 million. These royalties had accumulated because services could not reliably identify or locate the correct rightsholders for many streams. The transfer provided one of the largest publicly documented snapshots of metadata-related payment failures in modern music licensing. [Pitchfork]pitchfork.comThis follows the directives of the Music Modernization Act (MMA), which requires the MLC to distribute unmatched royalties to rightful ri…

What made the dataset important was not simply its size. It demonstrated that millions of legitimate uses had already generated revenue, yet ownership information remained insufficient for payment. The money existed because listening activity had been measured. The bottleneck was data.

Subsequent debates about the MLC’s unmatched holdings highlighted how persistent the issue remained. Critics argued that unmatched balances continued to grow, while supporters emphasised that the underlying cause was often incomplete industry metadata rather than missing usage information. Regardless of where responsibility lay, both sides pointed to the same reality: royalties were waiting for better ownership data. [CMU]completemusicupdate.comthe mlcs billion dollar black box in the spotlight in us copyright office reviewAbout $600 million from royalties… the music business explained

Unmatched Pools illustration 2

What matching can recover later

One reason unmatched pools are so revealing is that many royalties can eventually be recovered once missing metadata is corrected.

The MLC has built matching and claiming tools that allow publishers and songwriters to search unmatched uses, propose corrections and identify ownership interests. Its system effectively turns unmatched royalties into a catalogue of unresolved metadata problems waiting to be solved. [Mechanical Licensing Collective]pitchfork.comThis follows the directives of the Music Modernization Act (MMA), which requires the MLC to distribute unmatched royalties to rightful ri…

When a songwriter discovers a missing registration, a publisher corrects ownership shares, or a database finally connects an ISRC to the correct musical work, royalties that were previously stuck can often be released. Matching technologies increasingly combine identifiers, ownership records and algorithmic comparison methods to make these connections. The U.S. Copyright Office has noted that matching may involve ISWC–ISRC cross-references, metadata comparisons and other automated techniques, although human review is still required in difficult cases. [U.S]copyright.govunclaimed royalties final reportCopyright OfficeUnclaimed Royalties: Best Practice Recommendations for…8 Jul 2021 —… Data matching can use a number of combinations…. Copyright Office

This recoverability is important because it proves the royalties were not generated in error. The value was real all along; only the metadata was incomplete.

Why old gaps keep returning

The persistence of unmatched pools shows that metadata problems are not merely historical leftovers from the early streaming era.

Music ownership changes constantly. Publishing catalogues are sold, songwriter splits are amended, administrators change, and new versions of recordings are released. A database that was accurate at one moment can become outdated later. As a result, matching is not a one-time clean-up exercise but a continuous maintenance challenge. [Music Tech Solutions]musictech.solutionsMusic Tech SolutionsThe MLCThe Mechanical Licensing Collective (“MLC”) repeats this error in digital form. Musical works ownership is dyn…

The industry also continues to generate new recordings faster than ownership information can always be verified. Songwriters may delay registrations, collaborators may not finalise splits immediately, or ownership records may arrive in different systems at different times. Even small discrepancies can create payment bottlenecks when millions of transactions are processed automatically. [Fair Trade Music International]fairtrademusicinternational.orgFair Trade Music InternationalUnmatched royaltiesA songwriters' guide to the MLC unmatched royalties issue. Learn how to find out if some…

The recurring appearance of unmatched royalties therefore reveals a structural lesson: collecting usage data is relatively easy, but maintaining accurate relationships between recordings, compositions and owners is much harder. Every new release becomes another test of the industry’s metadata infrastructure.

Unmatched Pools illustration 3

What unmatched pools reveal about metadata quality

Viewed as a dataset, an unmatched royalty pool acts like a map of information failures.

A growing unmatched balance often indicates:

  • Missing ownership registrations.
  • Weak links between recordings and compositions.
  • Incomplete creator identifiers.
  • Inconsistent naming conventions across databases.
  • Delays in updating ownership changes.
  • Fragmented information exchange between industry participants. CISAC [2curveroyaltysystems.com]curveroyaltysystems.comimprove music publishing metadata iswc servicesThe ISWC database and standard is maintained by CISAC. An ISWC is formatted as an 11-…Read more…

The most important insight is that unmatched royalties measure the cost of these failures in financial terms. Metadata errors are often discussed as technical issues, but unmatched pools convert them into visible sums of money that cannot yet reach their intended recipients.

That is why unmatched royalty pools occupy such an important place in discussions about music metadata. They demonstrate that the industry’s challenge is not merely tracking music consumption. It is maintaining reliable connections between usage records, recordings, musical works and ownership data. Whenever those connections fail, royalties accumulate in waiting rooms of unpaid money, providing a running ledger of the metadata gaps that still need to be closed. [Mechanical Licensing Collective]pitchfork.comThis follows the directives of the Music Modernization Act (MMA), which requires the MLC to distribute unmatched royalties to rightful ri… [TuneCore]support.tunecore.comis the Black Box and what are Black Box Royalties?The Black Box refers to a pool of revenue at a collection society where the songwriter…

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Endnotes

  1. Source: support.tunecore.com
    Link: https://support.tunecore.com/hc/en-us/articles/4406899403924-What-is-the-Black-Box-and-what-are-Black-Box-Royalties
    Source snippet

    is the Black Box and what are Black Box Royalties?The Black Box refers to a pool of revenue at a collection society where the songwriter...

  2. Source: lumoza.io
    Link: https://lumoza.io/guides/music-royalties
    Source snippet

    LumozaMusic Royalties Explained: What They Are and How...28 Jan 2026 — Missing or inconsistent metadata (titles, ISRC, ISWC, writer shar...

  3. Source: copyright.gov
    Title: unclaimed royalties final report
    Link: https://www.copyright.gov/policy/unclaimed-royalties/unclaimed-royalties-final-report.pdf
    Source snippet

    Copyright OfficeUnclaimed Royalties: Best Practice Recommendations for...8 Jul 2021 —... Data matching can use a number of combinations...

  4. Source: papers.ssrn.com
    Link: https://papers.ssrn.com/sol3/Delivery.cfm/6575858.pdf?abstractid=6575858&mirid=1
    Source snippet

    SSRNMusic Streaming Metadata Mapping ReportMatching ISWC and ISRCs is not their priority which remains ensuring recording metadata to be...

  5. Source: cisac.org
    Link: https://www.cisac.org/services/information-services
    Source snippet

    CISACInformation ServicesCIS uses a variety of international standard identifying codes for musical works (ISWC), audiovisual works (ISAN...

  6. Source: pitchfork.com
    Link: https://pitchfork.com/news/streaming-services-pay-dollar424-million-in-unmatched-royalties-to-mechanical-licensing-collective
    Source snippet

    This follows the directives of the Music Modernization Act (MMA), which requires the MLC to distribute unmatched royalties to rightful ri...

  7. Source: completemusicupdate.com
    Title: the mlcs billion dollar black box in the spotlight in us copyright office review
    Link: https://completemusicupdate.com/the-mlcs-billion-dollar-black-box-in-the-spotlight-in-us-copyright-office-review/
    Source snippet

    About $600 million from royalties...

  8. Source: curveroyaltysystems.com
    Title: improve music publishing metadata iswc services
    Link: https://www.curveroyaltysystems.com/news/improve-music-publishing-metadata-iswc-services
    Source snippet

    The ISWC database and standard is maintained by CISAC. An ISWC is formatted as an 11-...Read more...

  9. Source: members.cisac.org
    Title: Download File.do
    Link: https://members.cisac.org/CisacPortal/cisacDownloadFile.do?docId=17911
    Source snippet

    Metadata and how it could Improve your...TIP 3: Make sure your Work has received an. ISWC! (It is mandatory for all CISAC members..) Yo...

  10. Source: cisac.org
    Title: launches new iswc ipi context search help music publishers solve
    Link: https://www.cisac.org/Newsroom/news-releases/cisac-launches-new-iswc-ipi-context-search-help-music-publishers-solve
    Source snippet

    CISAC launches new 'ISWC IPI Context Search' to help...1 Dec 2025 — The new ISWC IPI Context Search allows music publishers to search fo...

  11. Source: themlc.com
    Link: https://www.themlc.com/illuminating-black-box
    Source snippet

    Mechanical Licensing CollectiveIlluminating Black BoxThe MLC's Matching Tool allows Members to search the data for the unmatched royaltie...

  12. Source: fairtrademusicinternational.org
    Link: https://www.fairtrademusicinternational.org/campaigns/unmatched-royalties/
    Source snippet

    Fair Trade Music InternationalUnmatched royaltiesA songwriters' guide to the MLC unmatched royalties issue. Learn how to find out if some...

  13. Source: themlc.com
    Link: https://www.themlc.com/historical-royalties
    Source snippet

    Mechanical Licensing CollectiveHistorical RoyaltiesIs There Still A “Black Box” of Mechanical Royalties With The MLC? No, the data on all...

  14. Source: musictech.solutions
    Link: https://musictech.solutions/category/the-mlc/
    Source snippet

    Music Tech SolutionsThe MLCThe Mechanical Licensing Collective (“MLC”) repeats this error in digital form. Musical works ownership is dyn...

  15. Source: digitalmusicnews.com
    Title: mechanical licensing collective black box royalties
    Link: https://www.digitalmusicnews.com/2023/02/03/mechanical-licensing-collective-black-box-royalties/
    Source snippet

    MLC 'Unmatched Royalties' Hit $561MM in 2021...03 Feb 2023 — The music industry can count the MLC as another major contributor to the m...

Additional References

  1. Source: law.unh.edu
    Link: https://law.unh.edu/sites/default/files/media/2023/06/sharp_lobel-2.pdf
    Source snippet

    es the incomplete history of digitizing musical metadata and highlights how vital comprehensive royalty regulation is to creators by...R...

  2. Source: linkedin.com
    Link: https://www.linkedin.com/pulse/how-unclaimed-royalties-actually-expire-explaining-black-ben-stauffer-vg2yf
    Source snippet

    How Unclaimed Royalties Actually ExpireUnder the Music Modernization Act, the Mechanical Licensing Collective (MLC) must hold accrued roy...

  3. Source: linkedin.com
    Link: https://www.linkedin.com/posts/jamiedhart_metadata-musicpublishing-publishing-activity-7307789146436050944-I86u
    Source snippet

    Let's talk catalog metadata. | Jamie Dee HartOne missing ISRC or metadata mismatch can erase their earnings completely. The MLC was built...

  4. Source: linkedin.com
    Link: https://www.linkedin.com/top-content/supply-chain-management/ensuring-data-quality/ensuring-accurate-music-metadata-for-royalties/
    Source snippet

    These identifiers ensure that when your music appears on UGC platforms, the royalties are matched and paid...Read more...

  5. Source: modern-musician.com
    Link: https://www.modern-musician.com/podcast-episode-308-caleb-shreve
    Source snippet

    On the performance side for publishing, half is paid to publishers and half is paid directly to songwriters. On...

  6. Source: billboard.com
    Title: the mlc improve royalties match rate new data network 1235545949
    Link: https://www.billboard.com/business/publishing/the-mlc-improve-royalties-match-rate-new-data-network-1235545949/
    Source snippet

    The MLC Aims to Improve Royalties Match Rate With New...7 Dec 2023 — The MLC has announced its new Supplemental Matching Network, which...

  7. Source: zachbornheimermusic.com
    Title: Zach Bornheimer Music The Role of Metadata in Music Royalties
    Link: https://zachbornheimermusic.com/music-business/the-role-of-metadata-in-music-royalties/
    Source snippet

    The Role of Metadata in Music Royalties - Zachary Bornheimer1 Sept 2025 — There's also an avalanche of “unclaimed” and “black box” royalt...

  8. Source: instagram.com
    Link: https://www.instagram.com/p/DMyQPRpBkqz/
    Source snippet

    (For musicians, producers, managers, and industry pros)...The MLC helps identify unmatched recordings so royalties can be paid correctly...

  9. Source: digitalmusicnews.com
    Title: muso ai catalog audit mlc mismatch solution
    Link: https://www.digitalmusicnews.com/2025/10/06/muso-ai-catalog-audit-mlc-mismatch-solution/
    Source snippet

    Audit Tool Reveals Shocking Scale Unpaid MLC...Oct 6, 2025 — Muso.AI's new audit service is giving songwriters and publishers the abilit...

  10. Source: medium.com
    Link: https://medium.com/%40ARIPO/what-you-should-know-about-the-mechanical-licensing-collective-the-mlc-9a92f5aec1c8
    Source snippet

    accumulated and held on to prior to The MLC beginning...Read more...

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Metadata Why Bad Music Data Costs Creators Money

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