In a significant move, the Mechanical Licensing Collective (MLC) has announced its first-ever audits of digital service providers (DSPs). This decision affects a wide range of online music services, including popular on-demand streaming platforms like Amazon Music, Tidal, Deezer, Apple Music, internet radio companies such as Pandora, Mixcloud, and iHeart Radio, as well as various music apps like Ultimate Guitar, PianoTrax, and WeavRun.
The MLC, established following the passage of the Music Modernization Act (MMA) in 2018, is tasked with administering a new blanket license system that replaced the older, more complex song-by-song licensing system. This initiative was primarily aimed at addressing issues related to unmatched and unpaid publishing royalties, which had accumulated to a significant amount. The MLC’s role includes the distribution of these royalties and overseeing the blanket license system.
The audits are a part of the MLC’s statutory responsibility to ensure accurate royalty reporting and payments. These audits are not only significant in ensuring financial transparency and accountability but also mark a historic moment in the 115-year history of the U.S. compulsory mechanical license, providing enhanced protection for songwriters and music publishers.
This move comes in the wake of a separate audit initiated by Bridgeport Music, a company known for its aggressive stance on copyright enforcement, against the MLC. Bridgeport Music’s decision to audit the MLC’s royalty payments raises questions about the potential use of the audit’s findings in future litigation, given the company’s history of legal battles over copyright issues.
Overall, the MLC’s audits represent a critical step in ensuring fairness in the music industry’s digital age, with potential implications for both large and small players in the online music space. It reflects a broader effort to adapt to the changing landscape of music distribution and consumption, ensuring that artists and publishers are fairly compensated for their work.
The Mechanical Licensing Collective (MLC)’s decision to audit digital service providers (DSPs) is a significant development in the music industry. This action is pivotal in ensuring that the distribution of royalties under the new blanket licensing regime established by the Music Modernization Act (MMA) is accurate and fair.
The MLC’s audits will encompass a broad range of digital music platforms. This includes widely used on-demand streaming services such as Amazon Music, Tidal, Deezer, and Apple Music. In addition to these, internet radio companies like Pandora, Mixcloud, and iHeart Radio, along with various music apps including Ultimate Guitar, PianoTrax, and WeavRun, will also be under scrutiny.
This move is historic in the context of the U.S. music industry, especially considering the 115-year history of the U.S. compulsory mechanical license. The MLC’s responsibility, as mandated by the MMA, is to ensure the accurate reporting and payment of royalties, which is crucial for the protection of songwriters’ and music publishers’ rights.
A notable aspect of this situation is the audit initiated by Bridgeport Music against the MLC. Bridgeport Music, known for its aggressive approach to copyright enforcement, has a history of litigious actions. This separate audit by Bridgeport raises questions about the potential implications of their findings, particularly regarding future legal actions related to copyright issues.
Overall, the MLC’s decision to audit DSPs is a critical step towards transparency and fairness in the digital distribution of music. It reflects the ongoing efforts to adapt to the rapidly evolving landscape of music consumption and distribution, aiming to ensure that creators and rights holders are appropriately compensated for their work.