Mechanical License Compliance Auditor
Audit mechanical licensing compliance, royalty calculations, and statutory rates across territories
What You Can Do
You can systematically verify mechanical royalty reporting against statutory rate tables, calculate mechanicals using per-unit, per-track, and percentage-of-revenue methodologies, and identify underreporting or calculation errors by licensee and territory. The skill cross-references reported amounts against applicable rates, tracks rate adjustments by effective date and jurisdiction, and generates exception reports for follow-up—reducing manual spreadsheet work and creating defensible audit documentation.
Features
automatically compare reported mechanicals against current CRB rates, Harry Fox guidelines, and territory-specific statutory tables
compute mechanicals using per-unit, per-track, percentage-of-revenue, and negotiated rate structures simultaneously
flag underreporting, missing territories, calculation errors, and rate misapplication with variance analysis
maintain timeline of effective rate changes by territory and update calculations retroactively
generate structured reports prioritizing discrepancies by materiality and licensee for audit follow-up
organize compliance verification by jurisdiction, reporting period, and licensee category (physical, digital, interactive streaming)
create timestamped records of all calculations and comparisons for regulatory defense and dispute resolution
analyze multiple licensee reports and catalog segments in a single audit cycle
Example Output
Licensee Compliance Report — Q4 2024
Summary:
- Total Reported Mechanicals: $47,230
- Calculated Statutory Owed: $51,890
- Variance: -$4,660 (9.8% underreported)
Territory Breakdown:
- United States: Reported $32,100 | Statutory $34,500 | Shortfall: $2,400
- Canada: Reported $9,120 | Statutory $9,215 | Compliant ✓
- UK: Reported $6,010 | Statutory $8,175 | Shortfall: $2,165 (missing Q3 adjustment)
Flagged Discrepancies:
- US interactive streaming undercalculated: Licensee used outdated $0.0091 rate (applied pre-2024); correct rate $0.0098 = $780 variance
- Canada mechanical missing from period (tracks 1,245–1,892): estimated owed $340
- UK reporting lag: Q3 CRB rate increase not reflected in calculations
Recommended Action: Contact licensee with corrected calculations; request $5,000 adjustment + late-payment interest.
What's Included
- SKILL.md instruction file with compliance verification framework:
- Statutory rate reference tables (US, Canada, UK, EU territories):
- Licensee discrepancy checklist (underreporting, territory gaps, method errors):
- Multi-methodology royalty calculation templates (per-unit, per-track, percentage-of-revenue):
- Compliance exception report generator (markdown format):
- Rate adjustment timeline tracker for CRB decisions and jurisdiction-specific changes:
Who It's For
- Mechanical Rights Managers — conducting quarterly/annual audits and licensee reconciliation
- Music Publishers — verifying royalty reporting accuracy and regulatory compliance
- Independent Labels & Distributors — managing compulsory mechanical licenses and statutory rate compliance
- Rights Organizations (Harry Fox, MLC, etc.) — processing batch licensee audits and exception reporting
- Music Business Consultants — supporting catalog audits and licensing dispute analysis
Best For
- Quarterly and annual mechanical royalty audits across multiple licensees and territories
- Investigating underreported royalties and calculation discrepancies from specific licensees
- Reconciling statutory vs. negotiated rate structures and post-CRB adjustment verification
- Batch processing of licensee reports (physical, digital, interactive streaming) for compliance gaps
- Preparing defensible documentation for licensing disputes and regulatory audits
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