Understanding the Music Modernization Act
The Music Modernization Act (MMA) is more than just a bill revising mechanical royalty payments and collective licensing regulations. It has far-reaching effects on rights holders and streaming platforms by introducing blanket mechanical licenses and establishing The Mechanical Licensing Collective (The MLC).
What Is the Music Modernization Act?
The MMA updates outdated laws for the digital era. Its goal is to ensure fair compensation for all songwriters, artists, and publishers, not just those who achieve major success. One of its main features is the creation of The MLC. This entity provides a blanket license for streaming services, covering mechanical rights for songs not included in direct agreements with music publishers.
Additionally, the MMA revises how rates are set for licensed songs in the U.S. It aims to improve earnings for songwriters and publishers by enhancing the management of both mechanical and performing rights.
The Current State of Mechanical Rights
At present, there is no blanket license for mechanical rights. This often results in the exploitation of songs when they are copied. Users of music are responsible for identifying rights holders and ensuring proper compensation, which frequently does not occur.
Streaming platforms manage both performing and mechanical rights but struggle with inefficiencies. The absence of a central database for music rights ownership exacerbates this issue.
Changes Introduced by the MMA
The MMA overhauls the mechanical royalties system, bringing substantial changes to how statutory boards and courts regulate collective licensing and set music usage rates. These reforms aim to create a more efficient and transparent system.
Support for the MMA
Various stakeholders support the MMA. Digital services will fund the changes, while The MLC, managed by music publishers and songwriters, will oversee the process. Music owners and users benefit from clearer royalty distribution and expanded board representation.
Notable supporters include The Digital Media Association, the National Music Publishers Association (NMPA), Downtown Music Publishing, BMI, ASCAP, Songwriters Of North America, and others.
Timeline of the MMA’s Progress
Here is a brief timeline of the MMA’s development:
- April 25, 2018: The House of Representatives passed the MMA, introduced by Robert Goodlatte and Jerrold Nadler. The bill aimed to improve mechanical licensing, protect pre-1972 performances, recognize adjunct creators, and establish a unified rate standard.
- May 10, 2018: The Senate introduced a comprehensive music reform package, including the MMA, Classics Act, and AMP Act. The bill faced minimal resistance and moved forward.
- September 18, 2018: The Senate approved the MMA unanimously. It then returned to the House for final approval of Senate amendments.
- Late September 2018: The bill was renamed the Orrin G. Hatch Music Modernization Act. It combined major legislation: the MMA, Classics Act, and AMP Act.
- October 11, 2018: The Orrin G. Hatch Music Modernization Act became law, marking a significant reform in the music industry.
For more information on the Music Modernization Act and its implications, visit our resources at Woolyvard.
