NEW LICENSING UNIT CALCULATES COST

The unit that will be responsible for collecting data on music usage and mechanical rights, copyright ownership and royalty payments has submitted its operational proposal to the Copyright Royalty Board.

The Mechanical Licensing Collective is proposing that the start-up will cost $37.25m with an annual assessment starting at $29m in 2021 when the MLC commences its blanket licensing operations.

Digital services, which will be able to receive blanket licenses through the MLC, will fund the unit created as a stipulation in the Music Modernization Act.

The MLC Board Chairman, ABKCO’s Alisa Coleman, said “We have outlined for the judges what is necessary to achieve these goals and significantly advance the industry, and to fulfill Congress’ mandate to end the status quo where undisclosed millions of dollars owed to music creators are not paid. We are going to continue to work tirelessly in these CRB proceedings to ensure the tech giants who joined with us to pass the MMA continue that partnership to fully fund the most important piece of the legislation, the entity that will actually implement the requirements of the legislation.”

A public version of the MLC’s submission to the CRB is available here. The CRB rules provide for a written response by the digital services, a written reply by the MLC, and then a hearing with live testimony, which is currently scheduled for February. The CRB ruling will be due by July. The MLC begins administering the blanket license on 1/1/21.

To further understand the CRB, MMA and MLC, may we suggest a little THC?