The MLC will receive notices and reports from digital music providers, collect and distribute royalties, and identify musical works and their owners for payment. This was approved by the CRB on December 12, 2019. The Copyright Office takes representation concerns seriously and agrees that they should be considered as part of the MLC board and committee selection processes. The MLC distributes 100% of the mechanical royalties it collects. A more detailed explanation can be found in our Annual Assessment Fee Explainer. The slides below provide an overview of how The MLC process will work. Photo: Courtesy The MLC On Jan. 1, 2021, the Mechanical Licensing Collective (MLC) will begin administering the new blanket license available to interactive streaming and download services in the United States. It is led by a Board of Directors that comprises fourteen individuals: ten must be representatives of music publishers and four must be professional songwriters who retain and license mechanical rights for songs they have written. Why should I become a member of the Digital Licensee Coordinator? How did the designation process consider diversity? The Register designated MLCI as the MLC because it demonstrated that it meets each of the statutory criteria, and it was only candidate that satisfied the statute’s endorsement requirement. The MLC will then take the information in the usage reports, match the information about the sound recordings identified in the usage reports to its database of musical works, and distribute paid royalties to known copyright owners (songwriters, composers, lyricists, and music publishers). Information about the designation process is available here. The mechanical licensing collective (“MLC”) is a nonprofit entity that will administer the new blanket licensing system established by the Music Modernization Act beginning on the “license availability date”—that is, January 1, 2021. These emails form part of the service you elect to receive when you subscribe to any of MBW's free email services. For digital music providers who engage in voluntary licensing and want the MLC to administer those voluntary licenses, the digital music provider should engage the MLC in conversations as soon as possible to ensure a seamless transition to the MLC. The MLC’s proposed start-up assessment is $37.25 million, with an annual assessment starting at $29 million in 2021, when it starts its blanket licensing operations. The DLC must: What entities have been designated as the MLC and the DLC? The mechanical licensing collective (“MLC”) is a nonprofit entity that will administer the new blanket licensing system established by the Music Modernization Act (“MMA”) beginning on the “license availability date”—that is, January 1, 2021. The operational costs of The MLC are paid for by DSPs through an administrative assessment set by the United States Copyright Royalty Board. This was approved by the CRB on December 12, 2019, with final regulations published on January 8, 2020. The term “unmatched,” as applied to a musical work (or share thereof), means that the copyright owner of such work (or share thereof) has not been identified or located. The DSPs send sound recording usage data, and accompanying mechanical royalties, to The MLC on a monthly basis. The MLC’s governance structure is set forth in the Music Modernization Act (“MMA”). Under the U.S. copyright law, the blanket licenses The MLC will issue could include permanent download use, but the DSPs could also continue to rely on record companies to provide those licenses and pay those royalties. The Radio Music License Committee (“RMLC”) represents the interests of the commercial radio industry on music licensing matters. These efforts extend for ninety days beyond the license availability date and involve using one or more bulk electronic matching processes that are employed on a monthly basis in the event the copyright owner remains unidentified. The MLC will distribute mechanical royalties on a monthly basis. So how do you know if you need a Blanket License or qualify as a significant non-blanket licensee? The Blanket License goes into effect on January 1, 2021 (“License Availability Date”). Before making these selections, the Copyright Office conducted a public proceeding in which it received proposals from entities seeking to be designated, as well as more than 600 comments from stakeholders throughout the music industry. Yes. While The MLC is the only entity that will administer the blanket mechanical license, other companies will still have the ability to administer voluntary licenses between DSPs and music publishers, including voluntary mechanical licenses for digital uses. We have begun extensive outreach to a variety of music industry organizations. The Mechanical Licensing Collective (MLC), established by the Music Modernization Act (MMA) and designated by the US Copyright Office, has submitted its proposal to the Copyright Royalty Board (CRB) outlining the structure of the collective and the funding required to carry out the statutory demands of the bill. You can consult The MLC’s Resources page to better understand The MLC’s functions and how you can Play Your Part. The MLC’s team spent thousands of hours collectively evaluating vendors, meeting with them, reviewing technical materials and assessing their experience and capacities. What is the Digital Licensee Coordinator and what will it do? Pursuant to the Music Modernization Act, licensees can continue any existing direct licenses and can enter into new ones.

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