Preparing For New Mechanical Licensing Collective to Protect Artists’ Work Product
Highlights
Under the Music Modernization Act, a new private entity – the Mechanical Licensing Collective (MLC) – will begin issuing licenses and handling royalties in January 2021
The MLC created preparation guidelines under its Play Your Part initiative
The MLC’s Data Quality Initiative (DQI) highlights data issues, allows participants to address discrepancies, and allows the MLC to more accurately distribute royalties
The Mechanical Licensing Collective (MLC), a new entity created under the Music Modernization Act, will begin granting blanket mechanical licenses – which is necessary to reproduce an artist’s work product – to Digital Service Providers (DSPs), such as retail stores and streaming providers, on Jan. 1, 2021. The MLC will collect mechanical royalties, distribute those royalties, and locate rights holders with undistributed royalties.
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