(Hypebot) — The Music Modernization Act (MMA) requires that the US Workplace of Copyright evaluate the Mechanical Licensing Collective (MLC) designation as the only real conduit of digital music royalties to songwriters and music publishers each 5 years.
The MLC’s typically controversial first 5 years are virtually up, and the Copyright Workplace is asking for public remark earlier than Might twenty ninth.
A $2B Controversial Begin
In 2019, The MLC was chosen to gather and distribute royalties from digital music suppliers, establish the works and their house owners, and pay them.
Since its official launch, the MLC has distributed $2 billion in month-to-month funds, however a number of hundred million {dollars} stay in a so-called “black field,” undistributed as a result of the MLC has been unable to match the royalties with their rightful proprietor.
The scale of the undistributed funds and the time they’ve sat there has outraged some songwriters and publishers.
However in a separate transfer that happy most stakeholders, final week the MLC filed a lawsuit in opposition to Spotify, in search of what it says are unpaid royalties due beneath its obligatory mechanical blanket license.
The authorized motion got here after Spotify reclassified its Premium Particular person, Duo, and Household subscription plans as “Bundled Subscription Choices” as a result of these plans embrace audiobook entry. By some estimates, the reclassification might price songwriters as much as $150 million yearly.
Now Is the Time To Weigh In
The US Copyright Workplace has stated it’s going to evaluate all public feedback because it decides if the Music Licensing Collective ought to proceed to gather and distribute royalties or if a brand new entity ought to be empowered.
Your voice must be heard.
It’s essential to submit feedback to the US Copyright Workplace supporting or disapproving of The MLC’s re-designation by Might 29, 2024. All feedback should be submitted electronically via this portal.
H/T: Jeff Worth
Bruce Houghton is the Founder and Editor of Hypebot, a Senior Advisor at Bandsintown, President of the Skyline Artists Company, and a Berklee Faculty Of Music professor.