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”

Music Licensing Collective (MLC) needs songwriters’ support

Songwriters, artists: sign petition to support MLC to collect streaming royalties. Take action now!

Nashville, TN (February 4, 2019) – The Nashville Songwriters Association International (NSAI), the Songwriters of North America (SONA), National Music Publishers’ Association (NMPA), today unveiled broad endorsements for their industry-consensus Music Licensing Collective (MLC) submission to the U.S. Copyright Office (USCO).

The submission, which will be filed by March 21st, creates the collective required by the Music Modernization Act (MMA) to license and administer mechanical rights. Additionally, the groups announced the MLC Board and Committee appointments and launched a website for all of the songwriters and artists who support the MLC to sign an official petition:  SupporttheMLC.com and a site for music publishers to add their endorsements: SongConnect.org.

“We’ve worked for decades for the benefits the MLC will bring songwriters/composers, including licensing their digital mechanical royalties at no cost since the streaming music companies have agreed to fund the collective.” – Steve Bogard, President, NSAI

Increased royalty payments from streaming services

Personal note:   The Music Licensing Collective (MLC) needs your support to ensure its success on your behalf.  It will create and maintain a thorough database of music composition copyrights (and the copyrights’ owners), collect mechanical royalties from digital music streaming services, and transmit those royalties to copyright holders based on the ownership claims set forth in the database.

Streaming services will pay mechanical royalties to the MLC based on the number of streams each song has racked up. This a major benefit for both artist and songwriters. The MLC will also set up a blanket mechanical license for streaming of music compositions, replacing the unwieldy Notice of Intention (NOI) that is currently filed when a streaming service cannot track down a copyright owner. This will result in significantly higher royalty payments for copyright holders in the MLC’s master database.*

All you have to do is join.  And its free.

“The U.S. Copyright Office will choose who runs the MLC this Summer.  The Nashville Songwriters Association International (NSAI), Songwriters of North America (SONA) and the National Music Publishers Association (NMPA) helped passed the MUSIC MODERNIZATION ACT, working on the legislation for years.  We are asking for your support for the MLC being created by us. We KNOW we can do the best job when it comes to licensing your songs and protecting your royalties because we’ve been doing it for decades.” – quote from the MLC website.

The Music Modernization Act (MMA) requires that the MLC is “endorsed by, and enjoys substantial support from, musical work copyright owners that together represent the greatest percentage of the licensor market.” Continue reading “Music Licensing Collective (MLC) needs songwriters’ support”

Copyright Royalty Board dramatically increases rates for songwriters

NMPA and NSAI declare victory

The following is a press release issued by NSAI (Nashville Songwriters Association International) on Saturday, January 27, 2018, concerning the increased percentage of revenue paid to songwriters.

Washington, D.C. – Early this morning the Copyright Royalty Board (CRB) released its ruling on mechanical rates for songwriters for 2018 – 2022. This decision is the result of a trial that took place between March and June of 2017 with the National Music Publishers’ Association (NMPA) and the Nashville Songwriters Association (NSAI), representing the interests of music publishers and songwriters against Google, Amazon, Apple, Spotify and Pandora.

‘Largest songwriter rate increase’ in CRB history

The court’s decision includes a significant increase in the overall percentage of revenue paid to songwriters from 10.5% to 15.1% over the next five years – the largest rate increase in CRB history. Additionally, the CRB removed the Total Content Cost (TCC) cap, giving publishers the benefit of a true percentage of what labels are able to negotiate in the free market resulting in significantly higher royalties for songwriters. The CRB also increased the TCC rate resulting in the most balance between record label and publishing rates in the history of mechanical licensing. In addition, the CRB granted a late fee which will dramatically alter the licensing practices of digital music companies.

Click here to read the full release at the NSAI website.

Bart Herbison. Photo: NSAI

“Songwriters desperately need and deserve the rate increases resulting from the Copyright Royalty Board (CRB) trial.  The CRB was a long and difficult process but songwriters and music publishers together presented a powerful case for higher streaming royalty rates. The Nashville Songwriters Association International (NSAI) thanks our songwriter witnesses Steve Bogard, Lee Thomas Miller and Liz Rose whose testimony was compelling.” – Bart Herbison, NSAI Executive Director

To read an in-depth review of the impact of the court ruling published by Variety magazine, click here.