MCSN Adopts Log-Based Royalty Distribution Model

MCSN Adopts Log-Based Royalty Distribution Model

The Musical Copyright Society Nigeria (MCSN) has officially announced a major transformation in its royalty payment framework with the adoption of a log-based royalty distribution model. This new system replaces the former general distribution approach and represents a significant step toward fairer, more transparent compensation for music creators.

Under the new framework, royalties will be calculated and paid strictly based on verifiable usage data, ensuring that members are rewarded according to how their works are actually used across broadcast, performance, and commercial platforms.

Understanding the New Distribution Model

Log-based royalty distribution is a data-driven system that allocates royalties using detailed usage records, rather than broad estimates or general market assumptions.

Unlike the previous general distribution model where limited data often required approximations this new approach relies on documented evidence of music use, ensuring payments reflect real-world performances and broadcasts.

With the adoption of log-based royalty distribution, MCSN will calculate royalties using:

  • Broadcast logs from radio and television stations

  • Performance logs from events and public venues

  • Programme schedules

  • Verified usage reports from licensed music users

This ensures that only works that are actually used and properly identified earn royalties, proportionate to their frequency and context of use.

Why MCSN Is Moving to Log-Based Royalty Distribution

The shift addresses long-standing concerns around fairness, accuracy, and transparency in royalty payments. Key benefits include:

Accuracy Over Estimates
Royalties are now based on documented usage, not approximations or sampling models.

Greater Transparency
Members can trace payments directly to specific performances or broadcasts, improving trust in the system.

Alignment With International Standards
Log-based distribution mirrors best practices used by leading collective management organizations worldwide.

Fairer Outcomes for All Creators
Emerging artists, niche genres, and catalogue works are compensated based on actual usage—not market dominance.

Improved Accountability
Both MCSN and music users can verify compliance through recorded usage logs.

How Log-Based Royalty Distribution Works

1. Collection of Music Usage Logs

MCSN now relies on detailed and verifiable music usage data submitted by licensed music users across multiple platforms, including:

  • Radio stations – track-by-track broadcast playlists
  • Television networks – programme music cue sheets and usage reports
  • Digital and streaming platforms – play counts, duration, and frequency of use
  • Public venues – digital monitoring systems and verified manual logs
  • Event organisers – live performance setlists and event reports

These logs form the foundation of accurate, usage-based royalty distribution.

 

2. Work Identification and Data Matching

Each recorded use of music is carefully matched against MCSN’s repertoire database using multiple identification points, such as:

  • Registered work titles and approved alternate titles
  • Composer, songwriter, and publisher information
  • Official MCSN work identification codes
  • International identifiers, including ISRC and ISWC codes (where available)

At this stage, accurate and complete metadata is critical. Missing or incorrect information may prevent a work from being successfully identified, which can delay or eliminate royalty payments.

 

3. Royalty Calculation

Once usage has been verified, royalties are calculated based on objective, measurable factors, including:

  • Number of performances or broadcasts
  • Duration of each use
  • Type of platform (broadcast, streaming, or public performance)
  • Audience reach, station coverage, or venue capacity
  • Licensing fees collected from each music user category

This ensures that royalties reflect the actual commercial value and reach of each usage.

 

4. Distribution to Rightsholders

Eligible rightsholders receive:

  • Itemised royalty statements showing detailed usage breakdowns
  • Transparent payment calculations
  • Clear identification of royalty sources (station, venue, event, or platform)
  • Established channels for enquiries, corrections, or disputes

This process guarantees accountability, clarity, and fairness in every distribution cycle.

Why Work Registration Is Now More Critical Than Ever

The New Reality: No Registration, No Payment

Under the log-based system, only registered works can be matched to usage logs.

If a song is played but not registered with MCSN at the time the usage log is received, royalties cannot be distributed for that performance.

 

Scenario 1: Registered Work

Your song is played 500 times on radio in 2024:

  • ✅ All performances are logged

  • ✅ Usage matches your registered work

  • ✅ You receive royalties for every play

  • ✅ Your statement shows a detailed breakdown

Scenario 2: Unregistered Work

Your song is played 500 times on radio in 2024:

  • ❌ Performances are logged but not matched

  • ❌ No royalty payment is processed

  • ❌ Royalties may remain unclaimed

  • ❌ Earned income is lost

The Registration Gap Costs You Money

Many Nigerian creators currently lose income because their works are used commercially but remain unregistered.

Common scenarios include:

  • Local hits receiving heavy regional airplay but earning nothing

  • Older catalogue works used as background music in hotels and retail spaces

  • Collaborations with incomplete or inconsistent registration details

Under log-based royalty distribution, these gaps result in zero payment.

Supporting the Transition to Log-Based Distribution

For the new system to succeed, cooperation is required from all stakeholders.

For Members:

  • Register all works accurately

  • Ensure correct metadata and ownership splits

  • Keep personal and banking details up to date

  • Respond promptly to verification requests

 

For Music Users:

  • Submit complete and accurate usage logs

  • Respond to licensing inquiries and invoices

  • Maintain proper documentation

  • Pay licensing fees on time

Become a Member of MCSN

Joining MCSN is the most important step toward earning performance royalties. Membership authorises MCSN to license, collect, and distribute royalties for your musical works and sound recordings.

Register Your Works

Once registered as a member, ensure that all compositions and recordings are properly submitted. Accurate work registration enables MCSN to track usage and distribute royalties correctly.

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