2 Days Left to weigh in on Mechanical Licensing Collective’s future

The MLC’s (Mechanical Licensing Collective) sometimes controversial first five years are almost up, and the US Copyright Office is asking for public comment before May 29th as it considers the organization’s future.

The Music Modernization Act (MMA) requires that the US Office of Copyright review the MLC’s designation as the sole conduit of digital music royalties to songwriters and music publishers every five years.

A Controverisal Start

In 2019, the Copyright Office chose The MLC to collect and distribute royalties from digital music providers, identify the works and their owners, and pay them.

Since its launch, the MLC has distributed $2 billion in monthly payments, but several hundred million dollars remain in a so-called “black box,” undistributed because the MLC has been unable to match the royalties with their rightful owner.

One source told Hypebot last week that MLC Black Box funds could exceed $1 billion.

The amount of undistributed funds and the time they have gone undistributed sat has outraged some songwriters and music publishers.

But in a separate move that pleased most stakeholders, the MLC recently filed a lawsuit against Spotify, seeking what it says are unpaid royalties under its compulsory mechanical blanket license.

The legal action came after Spotify reclassified its Premium Individual, Duo, and Family subscription plans as “Bundled Subscription Offerings” because they include audiobook access. By some estimates, the reclassification could cost songwriters up to $150 million annually.

Now Is the Time To Weigh In

The US Copyright Office has said it will review all public comments as it decides if the Music Licensing Collective should continue to collect and distribute royalties or if a new entity should be empowered.

Make your voice heard.

Submit comments to the US Copyright Office supporting or disapproving of The MLC’s re-designation by May 29, 2024. All comments must be submitted electronically through this portal.

H/T: Jeff Price

Bruce Houghton is the Founder and Editor of Hypebot, a Senior Advisor at Bandsintown, President of the Skyline Artists Agency, and a Berklee College Of Music professor.