<PAGE>

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

                  QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934


FOR THE QUARTER ENDED MARCH 31, 2002          COMMISSION FILE NUMBER: 2-22997


                                MILLS MUSIC TRUST
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             (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)


               NEW YORK                                           13-6183792
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    (STATE OR OTHER JURISDICTION OF                           (I.R.S. EMPLOYER
     INCORPORATION OR ORGANIZATION)                          IDENTIFICATION NO.)


C/O HSBC BANK USA, ISSUER SERVICES, 452 FIFTH AVENUE, NEW YORK, NY    10018-2706
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(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)                              (ZIP CODE)


REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE                (212) 525-1349
                                                                  --------------

INDICATE BY CHECK-MARK WHETHER THE REGISTRANT (1) HAS FILED ALL REPORTS REQUIRED
TO BE FILED BY SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 DURING
THE PRECEDING 12 MONTHS (OR FOR SUCH SHORTER PERIOD THAT THE REGISTRANT WAS
REQUIRED TO FILE SUCH REPORTS), AND (2) HAS BEEN SUBJECT TO SUCH FILING
REQUIREMENTS FOR THE PAST 90 DAYS.

                                YES   X         NO
                                     ---

NUMBER OF TRUST UNITS OUTSTANDING AS OF MARCH 31, 2002    277,712
                                                          -------
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                                                                               2


                          PART I - FINANCIAL STATEMENTS

Item 1. Financial Information

                                MILLS MUSIC TRUST
                  STATEMENTS OF CASH RECEIPTS AND DISBURSEMENTS
                   THREE MONTHS ENDED MARCH 31, 2002 AND 2001

                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                         Three Months Ended
                                                              March 31
                                                    ----------------------------
                                                       2002               2001
                                                    ---------          ---------
<S>                                                 <C>                <C>
       Receipts:
       Mills Music, Inc.                            $ 167,500(A)       $ 356,436

       Undistributed cash at beginning
       of the period                                  335,044                 51

       Disbursements- administrative
       expenses*                                      (81,523)           (13,285)
                                                    ---------          ---------

       Balance available for
       distribution                                   421,021            343,202

       Cash distribution to unit holders**
                                                      420,977            343,141
                                                    ---------          ---------

       Undistributed cash at end of the
       period                                       $      44          $      61
                                                    =========          =========
       Cash distribution per unit (based
       on 277,712 units outstanding)                $     .51          $    1.24
                                                    =========          =========
</TABLE>


    See accompanying Notes to Statements of Cash Receipts and Disbursements.

(A)   Minimum royalty payment

*     Includes $56,156 of administrative expenses paid in January 2002
      pertaining to 2001 income received December 31, 2001.

**    Includes $278,844 distributed in January, 2002 pertaining to 2001 income
      received December 31, 2001.
<PAGE>
                                                                               3

                                MILLS MUSIC TRUST
             NOTES TO STATEMENTS OF CASH RECEIPTS AND DISBURSEMENTS
                   THREE MONTHS ENDED MARCH 31, 2002 AND 2001

                                   (UNAUDITED)

NOTE 1.  ACCOUNTING POLICIES AND GENERAL INFORMATION

         Mills Music Trust ("the Trust") was created in 1964 for the purpose of
acquiring the rights to receive payment of a deferred contingent purchase price
contract obligation payable by Mills Music, Inc. ("Mills"). The contingent
payments are determined quarterly and are based on a formula which takes into
account gross royalty income paid to composers, authors and others, and less
amounts deducted by Mills in accordance with contract terms.

         Payments from Mills to the Trust are made in March, June, September,
and December, and include net royalty income received during the preceding
calendar quarter. The payments received are accounted for on a cash basis, as
are expenses. The Declaration of Trust requires the distribution of all funds
received by the Trust to the Unit holders after payment of expenses.

         The statements of cash receipts and disbursement reflect only cash
transactions and do not include transactions that would be recorded in financial
statements presented on the accrual basis of accounting, as contemplated by
accounting principles generally accepted in the United States of America.


NOTE 2.  FEDERAL INCOME TAXES

         No provision for income taxes has been made since the liability
therefore is that of the unit holders and not the Trust.


NOTE 3.  RELATED PARTY TRANSACTIONS

         The Declaration of Trust provides that each trustee shall receive
annual compensation of $2,500 per year for services as trustee, provided that
such aggregate compensation to the trustees as a group may not exceed 3% of the
monies received by the Trust in any year, and reimbursement for expenses
reasonably incurred in the performance of their duties. The Declaration of Trust
further provides for reimbursement to the corporate trustee for its clerical and
administrative services to the Trust. Accordingly, HSBC Bank USA (formerly
Marine Midland Bank), the corporate trustee, also receives reimbursement for
such services (including services performed as Registrar and Transfer Agent of
the Certificates representing Units). The Declaration of Trust further provides
that if any trustee performs unusual or extraordinary services, reasonable
compensation for such services shall be paid, subject to certain limitations and
to prior confirmation by a majority interest of Trust Certificate holders.
Pursuant to these
<PAGE>
                                                                               4

                                MILLS MUSIC TRUST
             NOTES TO STATEMENTS OF CASH RECEIPTS AND DISBURSEMENTS
                   THREE MONTHS ENDED MARCH 31, 2002 AND 2001
                                   (CONTINUED)

                                   (UNAUDITED)

provisions, disbursements to related parties were made as follows for the three
months ended March 31, 2002 and 2001.

<TABLE>
<CAPTION>
                                                         2002        2001
                                                         ----        ----
<S>                                                     <C>         <C>
               Trustee Fees:
                  Bernard D. Fischman                               $ 625
                  HSBC Bank USA                         $ 625         625

               HSBC Bank USA
                  Transfer agent and registrar          $  63       $  22
</TABLE>


         As reported in Form 8-K dated October 10, 2001, Bernard Fischman, one
of the originally named Trustees under the Trust, died on July 11, 2001. As a
result, HSBC is currently the sole Trustee.


NOTE 4.  ROYALTIES

         (a) The original (1964) Asset Purchase Agreement assumed by the Trust's
collecting/paying entity ("EMI") provides for a revised royalty calculation when
the amount calculated is less than $167,500 for the quarter. This occurred in
the quarter ended December 31, 1999, for which the calculation (and remittance)
was $155,717. EMI did not calculate that quarter's payment using the revised
royalty calculation. In the quarter ended June 30, 2001 EMI remitted the
difference between the $167,500 and the $155,717 previously remitted.

         (b) During the quarter ended September 30, 2001 the Trust did not
receive any payment of the deferred contingent purchase price from EMI. EMI
charged the Trust with an adjustment for certain costs relating to copyright
renewals incurred over several years and a retroactive adjustment relating to a
recent court decision, which negatively affected all holders of U.S. copyrights.

                  For the quarter ended December 31, 2001, EMI applied the debit
balance arising from the adjustment of the previous quarter to amounts owing for
that quarter and initially remitted approximately $60,000 to the Trust.
<PAGE>
                                                                               5

                                MILLS MUSIC TRUST
             NOTES TO STATEMENTS OF CASH RECEIPTS AND DISBURSEMENTS
                   THREE MONTHS ENDED MARCH 31, 2002 AND 2001
                                   (CONTINUED)


NOTE 4.  ROYALTIES (Continued)



                  After discussion between EMI and the Trust and the Trust's
counsel, EMI remitted an additional amount which brought the total for the each
of the quarters ended September 30, and December 31, 2001 to the $167,500
minimum quarterly distributions. EMI has taken the position that the additional
distributions would be considered advances against the future contingent portion
of earnings and the un-recouped copyright renewals. The Trust has taken the
position that such minimum distributions are due regardless of the adjustment
based upon the inclusion of gross royalty income of Related Companies as defined
in the relevant agreement. If EMI's position is correct, then future income of
the Trust will be impacted by the recognition and amount of such advances.

                  The Trust's auditors have evaluated the recasting of the
adjustment to years to which it pertains and the Trust has submitted a letter to
EMI, which recasts the amount of future contingent royalty payment reductions
from $275,000 claimed by EMI to $155,000. The revision does not include the
unresolved contract issue of advance (EMI's position) versus entitlement (the
Trust's position). The Trust has not yet received a response from EMI.

         (c) The Trust received the additional distributions late on December
31, 2001. The Trust made distributions based upon its receipt of the additional
distribution from EMI in January, 2002, after complying with the NASDAQ
distribution notification requirements. In January 2002, the Trust made the
distribution to unit holders of $278,844 ($1.00 per unit), as well as paying
Trustee fees, printing and legal and professional fees totaling $56,156, (of
which approximately $33,000 relates to the EMI matter previously discussed),
resulting in undistributed cash of $44 at the end of January. These transactions
are reported in the Trust's 2002 fiscal year. For federal income tax purposes,
the January 2002 distribution of cash received in 2001 is included in the unit
holder's 2001 taxable income.

         (d) For the quarter ended March 31, 2002 the Trust received the minimum
$167,500 from EMI. EMI's accounting for the quarter indicates a remaining
recoupment claim on future income of approximately $275,000. The Trust has
asserted that the remaining recoupment claim should be approximately $155,000,
not withstanding the apparent issue of the identification of the minimum royalty
payment sources.
<PAGE>
                                                                               6


                          PART I - FINANCIAL STATEMENTS



Item 2.  Management's Discussion and Analysis of Results of Operations

         The Trust's receipts from Mills Music, Inc. are derived from copyrights
established prior to 1964 and such receipts fluctuate based upon public interest
in the "nostalgia" appeal of older songs.

         The Trust's contingent fee income over the last three years has
averaged approximately $981,000 per year. In addition to the above, there are a
number of factors which create uncertainties with respect to the ability of the
Trust to continue to generate that level of income on a continuing, long-term
basis. Those factors include the effect that foreign and domestic copyright laws
and any changes therein have or will have on both licensing fees and renewal
rights ultimately, copyright expirations under such laws and the effect of
electronic copying of materials without permission.

         In 1976, the copyright law was changed for works that were within
renewal terms between December 31, 1976 and December 31, 1978 to add an
extension of 19 years to the 28-year renewal term. The original copyright term
is 28 years. That amendment made the copyright term 75 years. The Copyright Act
of 1976 provided for a single term of life plus 70 years after author's death
(with some variations in different circumstances) for works created after
January 1, 1978. The 1976 act provided that the writer and his heirs could
terminate a transfer or license of the renewal copyright that was executed
before 1978, so long as the termination was effected in a five-year period
following the end of the initial 56-year period.

         The copyright laws were modified by the Sonny Bono 1998 Copyright Term
Extension Act (the "Act"), which provided an additional 20 years of copyright
protection, such that the term of copyrights is now 95 years. In February 2002,
the U.S. Supreme Court granted certiorari to review a 2001 decision by the U.S.
Court of Appeals for the District of Columbia Circuit in Eldred v. Reno which
rejected certain constitutional challenges to the Act. The Trust is unable to
determine what impact, if any, the adverse decision by the Supreme Court would
have on royalties payable to and distributions by the Trust.

         The copyright laws provide that renewals vest in any person who is
entitled under the rules of statutory succession to the renewal and extension of
the copyright at the time the application to renew is made. If no renewal is
made, renewals vest in any person entitled under the rules of statutory
extension as of the last day of the original term of copyright to the renewal
and extension of copyright. The writer (and not the publisher to whom the
copyright was originally assigned) owns the renewal right. The laws name
specified classes of persons (the writer's wife, his children, etc.) who will
succeed to the renewal right if the writer dies before the end of the original
term. The Act does not distinguish between composers and lyricists. However, if
the composer and lyricist are not the same, each owns a portion of the renewal
rights. The composer and the lyricist may, and frequently do, assign their
respective interests in the renewal rights to a
<PAGE>
                                                                               7


publisher at the time of the assignment of the original copyright term. Such an
assignment of the renewal term is effective, however, only if the assignor
survives the original term. If he does not, his heirs will succeed to his share
of the renewal rights; and, in such event, these heirs are not obligated by the
assignment of the rights to the publisher to whom the original assignment was
made unless they joined in the assignment. In addition, the 1998 Copyright
Extension Act allows writers (or their heirs) to elect, after either a 35 or 40
year period as specified in the statute, to terminate a transfer of license or
renewal within five years of the expiration.

         In 2001, the trustees were able to obtain a listing of the top 50 songs
in the subject copyrighted songs of EMI (the current owner and administrative
entity for the copyright materials) with the original copyright dates listed.
The copyright dates range from 1922 to 1962.

         The song listing indicates that only one copyright of the top 50 songs
will reach the 95 year expiration within the next five years. The listing does
not provide an indication of the percentage of income earned by each copyright
to total income.

         The Trust cannot determine EMI's ability to secure renewals of the
copyrighted material; however, under the trust agreement, EMI must use its best
efforts to do so.

         During the quarter ended September 30, 2001 the Trust did not receive
any payment of the deferred contingent purchase price from EMI. EMI charged the
Trust with an adjustment for certain costs relating to copyright renewals
incurred over several years and a retroactive adjustment relating to a recent
court decision, which negatively affected all holders of U.S. copyrights.

         For the quarter ended December 31, 2001, EMI applied the debit balance
arising from the adjustment of the previous quarter to amounts owing for that
quarter and initially remitted approximately $60,000 to the Trust.

         After discussion between EMI and the Trust and the Trust's counsel, EMI
remitted an additional amount which brought the total for the each of the
quarters ended September 30, and December 31, 2001 to the $167,500 minimum
quarterly distributions. EMI has taken the position that the additional
distributions would be considered advances against the future Contingent Portion
of earnings and the unrecouped copyright renewals. The Trust has taken the
position that such minimum distributions are due regardless of the adjustment
based upon the inclusion of the gross royalty income of Related Companies as
defined in the relevant agreement. The ultimate resolution of this disagreement
may be material to both the amount and timing of future distribution to be
received by the Trust.

         The Trust received the additional distributions from EMI on December
31, 2001. The Trust made distributions based upon the additional distributions
from EMI in January 2002 after complying with the NASDAQ distribution
notification requirements. In January 2002, the Trust made the distribution to
unit holders of $278,844 ($1.00 per unit), as well as paying Trustee fees,
printing and legal and professional fees totaling $56,156, (of which
approximately $33,000 relates to the EMI matter previously
<PAGE>
                                                                               8


discussed), resulting in undistributed cash of $44 at the end of January. These
transactions will be reported in the Trust's 2002 fiscal year. For federal
income tax purposes, the January 2002 distribution of cash received in 2001 will
be includable in the unit holder's 2001 taxable income.

         For the quarter ended March 31, 2002 the Trust received the minimum
$167,500 from EMI. EMI's accounting for the quarter indicates a remaining
recoupment claim on future income of approximately $275,000. The Trust has
asserted that the remaining recoupment claim should be approximately $155,000,
not withstanding the apparent issue of identification of the minimum royalty
payment sources.




                           PART II - OTHER INFORMATION


               Items 1 through 6, inclusive, are not applicable.
<PAGE>
                                                                               9



                                   SIGNATURES


         Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned, there unto duly authorized.



                                                         /s/  MILLS MUSIC TRUST
                                                         -----------------------
                                                                (Registrant)




Date  May 13, 2002                                   By: /s/  MARCIA MARKOWSKI
      ------------                                       -----------------------
                                                              HSBC Bank USA
                                                              Corporate Trustee