MLC collects $40m from digital service providers

Royalties being distributed to copyright owners

Copyright owners – publishers and songwriters — can celebrate this month. The Mechanical Licensing Collective (MLC) made its first regular payment distribution to publishers in April, according to a statement by Nashville Songwriters Association International (NSAI).  

The statement said: “NSAI is proud of our involvement in crafting and passing the Music Modernization Act, which created the MLC and streamlined the way digital mechanical licenses are issued and royalties distributed.  This distribution marks a historic moment in music history and we look forward to the continued success of the MLC in matching copyright owners to digital usage while providing transparency and stability in the digital mechanical landscape.”

The distribution included royalties from the use of musical works by U.S. digital service providers (DSPs) during January 2021. It did not include any historical unmatched royalties, according to a statement at the MLC website.

Becoming a Member of The MLC is easy and free! To learn more about being a self-administered songwriter Member, click here.

Continue reading “MLC collects $40m from digital service providers”

Mechanical Licensing Collective gets go-ahead from U.S. Copyright

MLC will oversee collection of digital royalties for songwriters

By Preshias Harris

U.S.-based songwriters have a new champion in their corner. In July, the U.S. Copyright Office chose the industry-consensus Mechanical Licensing Collective, or MLC, to be the new agency to oversee licensing of digital mechanical royalties for American songwriters.

“The cost of collecting our royalties is, for the first time, paid for by the streaming companies instead of being deducted from our songwriter earnings.” – Steve Bogard, President, NSAI

As digital distribution of music grows and CD sales decline, songwriters have found it increasingly difficult to track royalties that are rightfully theirs.  The Music Modernization Act (MMA) became law in October 2018 and set in motion the process to appoint an entity to oversee licensing of digital royalties.

Prior to the adoption of the Music Modernization Act, streaming services such as Spotify and Apple Music themselves were responsible for identifying copyright owners and paying royalties.  However, in many instances, streaming companies were using songs without proper licenses.  In such cases, music publishers and songwriters had to resort to costly lawsuits or simply give up the fight. Now, the MLC will be charged with identifying songwriters and copyright owners and paying them royalties when their songs are played on a music streaming service.

Strong approval from songwriters

Continue reading “Mechanical Licensing Collective gets go-ahead from U.S. Copyright”

MLC needs songwriters’ support

Ensures streaming services pay royalties

A reminder to all songwriters and music publishers: please sign the petition supporting the Music Licensing Collective!

The submission, which will be filed by March 21, creates the collective required by the Music Modernization Act (MMA) to license and administer mechanical rights.  (The MLC will not replace your existing P.R.O.)  The Register of Copyrights will designate the MLC from submitted applications based on an entity proving itself able to achieve the goals of the MLC, as well as meeting all the legal requirements as stipulated in the MMA.

A major benefit: MLC will collect and distribute your mechanical streaming royalties for free.

As mentioned in a previous post here, at least one other organization is bidding for the right to administer these services.  However, MLC is the one formed as a collective that includes and is endorsed by Nashville Songwriters Association International (NSAI), Songwriters of North America (SONA) and National Music Publishers Association (NMPA). Additionally, MLC receives the endorsement of your Performing Rights Organizations ASCAP, BMI and SESAC.  It is the applicant that is run by songwriters for songwriters.

When the MLC is up and running, there will be no charge for songwriters to participate.  The financial benefits for songwriters under the new MMA are considerable, particularly with increase in potential income from streaming and downloads that MLC will administer.

But time is running out and MLC needs your endorsement to show the US Copyright Office that the MLC has your support. Take a moment to add your endorsement now at supportthemlc.com.

MLC ‘great new tool’ for songwriters

Excerpt from ‘About the MLC:’  Streaming companies must license millions of individual songs and no agency exists to do this job.   Music publishers may collect mechanical royalties for a songwriter or hire a company to collect them.  Many self-published songwriters must pay someone to collect their royalties, do the often-complicated job themselves, or many just don’t bother with collecting them at all.

The Music Licensing Collective, or MLC, will be a great new tool for American songwriters and in January 2021 will begin licensing your mechanical streaming royalties for FREE!  It’s free because the streaming companies agreed to pay all the costs as part of the MUSIC MODERNIZATION ACT.  All you’ll have to do is join!

Read more information about how the MLC will help songwriters at no charge to you here.

#supportthemlc #musicmodernizationact #songwriters

Preshias Harris  is a music journalist and music career development consultant with the emphasis on new and aspiring artists and songwriters. Her book, ‘The College of Songology 101: The Singer/Songwriter’s Need to Know Reference Handbook’ is available at   www.collegeofsongology.com   Follow her blog at  www.nashvillemusicline.com

President signs Music Modernization Act

Songwriters ‘breathe sigh of relief’

“The Music Modernization Act (MMA) is now law!  We have worked on elements of this legislation for 15 years. With the passage of this law, every professional songwriter in America, including myself, who has suffered devastating economic losses in the era of digital music delivery, can now breathe a sigh of relief and be optimistic about the future of our profession. Along with the songs that bear my name, this is my proudest career accomplishment.” – Steve Bogard, writer of 10 #1 songs and President of the Nashville Songwriters Association International (NSAI)

“Now the job of utilizing the tools found in the Music Modernization Act begins,” said NSAI Executive Director Bart Herbison.  “NSAI and other songwriter organizations will immediately select songwriter board and committee members for the new Music Licensing Collective (MLC) that commences operation on January 1, 2021.  We have two years to build the first-ever songwriter, music publisher run mechanical licensing collective.  This will be the first collection agency that pays songwriters 100 cents from every royalty dollar since the digital streaming companies will pay operational costs of the MLC.”

Note: the text of this post is taken from a media release issued on October 11, 2018, by the Nashville Songwriters Association International.  For more information, visit the NSAI website.

Higher streaming royalties

Higher streaming royalties resulting from the marketplace rate standards included in the Music Modernization Act will come over time when the next Copyright Royalty Board proceeding occurs in four years or when ASCAP or BMI have rate court proceedings under the terms of the MMA.  Agreements reached with streaming companies or court proceedings could result in higher streaming rates.

“It is not too bold to say this is the most important songwriter legislation ever adopted by Congress.  When we negotiate our digital rates or go to trial-type proceedings, we expect rates that are much fairer based on what the market should pay,” Bogard added.

44% mechanical license royalty increase

Songwriters WILL see an immediate 44% mechanical royalty increase beginning in January 2019 from the previous Copyright Royalty Board trial where NSAI and the National Music Publishers Assn. represented American songwriters and won the largest mechanical royalty increase in history.  The increase will phase in over a five-year period.

Steve Bogard (President, NSAI), Darius Rucker, Bart Herbison (Executive Director, NSAI), Congressman Doug Collins (GA), Lee Thomas Miller (Former President, NSAI) at the Nashville Songwriter Awards

THE MMA in a nutshell:

  • Changes the standard by which songwriter streaming rates are established replacing an outdated 1909 law that governs songwriter mechanical or sales royalties, changes consent decree regulations from 1941 that govern songwriter performance royalties.
  • Requires the random selection of judges when performing rights societies ASCAP or BMI go to a rate court proceeding.  Presently those judges are appointed for life.
  • Creates a new Music Licensing Collective governed by songwriters and music publishers to oversee and administer digital mechanical licensing and payments, resolve disputes and administer unclaimed royalties.
  • Eliminates the disastrous Notice of Intent (NOI) program administered by the U.S. Copyright Office that shifted the digital mechanical licensing burden back to songwriters.
  • Guarantees streaming royalty payments to artists whose recordings were done before 1972 who now are not required to be paid due to a loophole in the Copyright Act.
  • Stipulates direct streaming royalty payments to record producers and engineers.

More information about NSAI here.

Music Row One Sheet October 1, 2018

Nashville Music News Roundup

Scroll down to read these Music Row One Sheet news items

  • Music Modernization Act inches closer
  • Irish artist Mags launches ‘Strong Enough’ radio tour
  • Garth goes ‘Triple Live’ with free album downloads
  • Randy Houser launches ‘Magnolia’ tour, new album
  • Kenny Chesney surprises one millionth fan
  • Listen to Preshias on Y’All Radio

Scroll down to read these Music Row One Sheet news items

Music Modernization Act inches closer

Some encouraging news for songwriters and publishers emerged a few days ago. The Music Modernization Act (MMA)  had passed the House unopposed but appeared to hit a potential roadblock as it moved toward a Senate vote.

In May, Senator Ron Wyden (D-Ore.) introduced an alternative bill that conflicted with key parts of the MMA bill. The Recording Industry Association of America (RIAA), with the backing of Nashville Songwriters Association International (NSAI) and National Music Publishers Association (NMPA) has been negotiating with Sen. Wyden to reach a compromise. The RIAA stated that they have reached a ‘handshake’ deal with Sen. Wyden, according to an article in Billboard magazine posted August 28.

However, SiriusXM is still lobbying against the bill that would not require terrestrial radio stations to pay royalties on pre-1972 recordings. Earlier, proponents of the MMA – a bill that is seen as beneficial to songwriters and music publishers – overcame objections to the bill lodged by Blackstone, owners of SESAC and the Harry Fox Agency.

See the full report on Billboard’s website, here.

Irish artist Mags launches ‘Strong Enough’ radio tour

Mags McCarthy

Irish-born, singer-songwriter and international recording artist, Mags recently celebrated her debut at country radio here in the USA with the original tune ‘Strong Enough.’ Last week, Mags kicked off the first leg of her radio promotion tour making her way through the Midwest visiting radio stations in Illinois, Iowa and Wisconsin. Continue reading “Music Row One Sheet October 1, 2018”

Sign the Petition and Ask Congress to Pass the Music Modernization Act

CLICK HERE TO SIGN THE PETITION

For too long, songwriters have had to work within an outdated system that over-regulates and undervalues their music. The Music Modernization Act of 2017 will help change that.

[Note: the text of this post is reproduced from an email sent out to ASCAP members. You do not have to be an ASCAP member to respond to this request that is supported by all Performing Rights Organizations and other entities involving songwriters and music publishers. You can find the original message here.]

Improved compensation for music creators

ASCAP has long advocated for a more flexible framework that can adapt to the realities of the modern music marketplace. The Music Modernization Act is a bipartisan music reform bill that represents months of compromise and collaboration between stakeholders from the music and tech sectors.

It includes provisions that we hope will ultimately result in compensation for our members that better reflects the true value of your music:

  • Rate court reform: replacing a single rate court judge for each PRO with different judges randomly assigned to each rate-setting proceeding (the “wheel” system)
  • Removal of Section 114(i) of the Copyright Act: allowing a rate court to consider all relevant evidence when determining songwriter compensation – including the rates that recording artists earn – an ability that is currently prohibited by law.

The Music Modernization Act of 2017 also includes provisions to reform Section 115 of the Copyright Act to create a single licensing entity that will administer the mechanical reproduction rights for all digital uses of musical compositions like those used in interactive streaming models. This replaces the “bulk NOI” process that often failed to result in payments to songwriters and music publishers with a system that will enable digital music services to find the owners of the music they use.

While no legislation will solve all of our industry challenges, on balance we believe this is a significant step forward for all music creators.

You can help now. Ask Congress to pass the Music Modernization Act today. Click here to sign ASCAP petition.

If you are a member of BMI or SESAC and have received notification from them about a petition regarding the Music Modernization Act of 2017, you are of course welcome to respond to their communication.