MLC is up for re-designation, and you have until May 29th to be heard

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

The MLC’s sometimes controversial first five years are almost up, and the Copyright Office is asking for public comment before May 29th.

A $2B Controverisal Start

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

Since its official 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.

The size of the undistributed funds and the time they have sat there has outraged some songwriters and publishers.

But in a separate move that pleased most stakeholders, last week the MLC filed a lawsuit against Spotify, seeking what it says are unpaid royalties due 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 those plans 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.

Your voice needs to be heard.

It’s important to 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.