What is the Music Licensing Collective and Why Should you Care!
The Music Licensing Collective (MLC) is a non-profit organization that was established in the United States as a result of the Music Modernization Act (MMA) of 2018. The MMA was signed into law to address the issue of music licensing and copyright law in the digital age. The MMA has three main components that are designed to update the music industry and bring it into the 21st century. These components are the Music Modernization Act itself, the CLASSICS Act, and the AMP Act.
The Music Modernization Act (MMA) is a comprehensive piece of legislation that streamlines the music licensing process for digital music services. It creates a new entity, the MLC, which is responsible for administering the blanket mechanical license. The MLC will also be responsible for collecting and distributing mechanical royalties to songwriters and music publishers.
The CLASSICS Act stands for “Compensating Legacy Artists for their Songs, Service, and Important Contributions to Society” and is designed to ensure that artists who recorded music before 1972 receive royalties for their work. Before the CLASSICS Act, pre-1972 recordings were not covered by federal copyright law and were instead governed by a patchwork of state laws.
The AMP Act stands for “Allocation for Music Producers” and it ensures that music producers and engineers are paid royalties for their work. Under the previous system, producers and engineers were not eligible to receive royalties for their contributions to a song. The AMP Act corrects this by allowing producers and engineers to receive a percentage of the royalties paid to songwriters and music publishers.
The Purpose of the MLC
The MLC was created to provide a centralized organization that can manage the new blanket mechanical license created by the MMA. This license allows digital music services to use the work of songwriters and music publishers in exchange for payment of royalties. The MLC was created to ensure that all parties involved in the music industry are fairly compensated for their work.
The MLC is responsible for collecting data from songwriters and music publishers, as well as digital music services, about which songs are being used and who owns the rights to those songs. This information is then used to create a comprehensive database of all the songs that are being used by digital music services.
How the MLC Works
When a digital music service wants to use a particular song, they can search the MLC‘s database to determine who owns the rights to that song. They can then obtain a license from the MLC, which will allow them to use the song in exchange for payment of royalties. The MLC is responsible for collecting those royalties and distributing them to the appropriate parties.
The MLC works closely with songwriters, music publishers, and digital music services to ensure that all parties are fairly compensated for their work. The organization is committed to improving the transparency and accuracy of the music industry while also making it easier for digital music services to obtain licenses and pay royalties.
The Music Licensing Collective is an important organization that is helping to modernize the music industry. By streamlining the process of obtaining mechanical licenses and ensuring that royalties are paid to the correct parties, the MLC is making it easier for digital music services to use the work of songwriters and music publishers. As the music industry continues to evolve, the MLC will play an important role in ensuring that songwriters and music publishers are fairly compensated for their work.
Overall, the MLC is a positive step forward for the music industry and is helping to create a more fair and transparent system for all parties involved. The Music Modernization Act, the CLASSICS Act, and the AMP Act are all designed to ensure that the music industry is keeping up with technology and that everyone involved in the creation and distribution of music is being fairly compensated for their work.