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How Will the Music Modernization Act's Mechanical Licensing Collective Work?

By Chris Castle
December 01, 2018

The four-part "Orrin G. Hatch — Bob Goodlatte Music Modernization Act" (MMA) passed by both the U.S. House of Representatives and the Senate, was recently signed into law by the President.

This article focuses on managing change for clients affected by the MMA's government-mandated mechanical licensing collective, often referred to as the "MLC" or in the statute as "the collective." In my view, far from putting songwriters on a trajectory away from the government regulation that has oppressed them for generations, the collective imposes an entirely new bureaucracy with potentially significant costs that are not readily apparent.

For full disclosure, I have been critical of the MLC over the last year. While a few of my concerns were addressed in the legislation, I fear there are still loose ends that may bedevil practitioners. Like any other major change in the law, compliance may be expensive and those compliance costs will not be covered by anyone but the songwriter or publisher.

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