Mills Music Trust reported a total revenue of $1,570,141 for the fiscal year ending December 31, 2025, marking a significant increase from $1,291,775 in 2024. This increase was primarily attributed to a one-time settlement payment of $500,000 received from EMI Mills Music Inc. (EMI), which was part of a settlement agreement regarding underpayments related to the Contingent Portion payments. The Trust distributed $652,817 to its Unit Holders during 2025, slightly down from $658,733 in the previous year, resulting in a cash distribution of $2.35 per Trust Unit compared to $2.37 in 2024.
The Trust's financial performance reflects ongoing disputes with EMI regarding the calculation of the Contingent Portion payments, which are based on a formula outlined in the Asset Purchase Agreement. The Trust has identified deficiencies in payments from EMI, amounting to $147,742 as of December 31, 2025. The settlement reached in October 2025 addressed claims up to December 31, 2024, but did not resolve ongoing disputes regarding future payments, leaving uncertainty about the Trust's revenue stream moving forward.
Operationally, the Trust continues to rely on EMI for the collection of royalties from its extensive Catalogue, which consists of over 12,000 music titles. Approximately 1,430 of these titles generated royalty income in recent years, with a significant portion of revenue derived from songs registered before 1954. The Trust does not own the Catalogue or any copyrights, and its income is contingent on EMI's ability to maintain rights and collect royalties effectively. The Trust's revenue is also influenced by market conditions and consumer interest in older songs, which can fluctuate.
As of December 31, 2025, the Trust had 101 Unit Holders of record, and it does not anticipate any material impact from inflation on its operations. The Trust's administrative expenses were $917,370 for the year, reflecting an increase from $633,042 in 2024, which may be attributed to rising costs associated with third-party service providers. The Trust maintains a conservative approach to its financial management, with no unpaid administrative expenses reported as of the end of the fiscal year.
Looking ahead, the Trust's outlook remains cautious due to the unresolved disputes with EMI regarding the calculation of future Contingent Portion payments. The Trustees have expressed uncertainty about the Trust's ability to recover any underpayments not covered by the recent settlement. The Trust's financial health will largely depend on EMI's performance in managing the Catalogue and the ongoing popularity of its music titles, as well as the resolution of any disputes that may affect future revenue streams.
About MILLS MUSIC TRUST
Mills Music Trust is a passive entity established to receive and distribute royalty payments derived from a music and lyric copyright catalog. It does not own copyrights or collect royalties directly but distributes income from a contingent payment obligation based on royalty income generated by the catalog, managed by EMI and Sony/ATV. The Trust primarily serves trust unit holders through quarterly distributions, with a focus on royalty income from historic music titles.
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