Music Modernization Act, Explained
The Music Modernization Act (MMA) is the most significant piece of music copyright legislation in decades. Signed into law in 2018, it overhauled how mechanical royalties are licensed and collected in the digital streaming era. Here's what every songwriter needs to know.
Key Provisions Of The Mma
The MMA addressed several critical issues in how mechanical royalties are licensed and collected in the streaming era.
Established a new nonprofit organization to administer blanket mechanical licenses for interactive streaming services (Spotify, Apple Music, etc.). The MLC maintains a comprehensive database of compositions and distributes royalties to publishers and self-administered songwriters.
Impact: Centralized mechanical royalty collection for US streaming
Replaced the old system of individual NOIs (Notices of Intent) with a single blanket license. Streaming platforms now pay the MLC directly, which distributes to rights holders. This eliminates the need for platforms to identify and license each song individually.
Impact: Simplified licensing for streaming platforms
Under the old system, platforms sent NOIs to the Copyright Office when they couldn't identify rights holders. This created billions in unmatched royalties. The MMA created a process to identify and pay these "black box" funds to rightful owners.
Impact: Recovery of $400M+ in previously unmatched royalties
Changed the standard for setting mechanical royalty rates from the old "801(b)" standard to a "willing buyer/willing seller" standard — expected to result in fairer, higher rates for songwriters.
Created the Mechanical Licensing Collective (MLC)
Established a new nonprofit organization to administer blanket mechanical licenses for interactive streaming services (Spotify, Apple Music, etc.). The MLC maintains a comprehensive database of compositions and distributes royalties to publishers and self-administered songwriters. Impact: Centralized mechanical royalty collection for US streaming
Blanket Mechanical License for DSPs
Replaced the old system of individual NOIs (Notices of Intent) with a single blanket license. Streaming platforms now pay the MLC directly, which distributes to rights holders. This eliminates the need for platforms to identify and license each song individually. Impact: Simplified licensing for streaming platforms
Ended the NOI "Black Box" Problem
Under the old system, platforms sent NOIs to the Copyright Office when they couldn't identify rights holders. This created billions in unmatched royalties. The MMA created a process to identify and pay these "black box" funds to rightful owners. Impact: Recovery of $400M+ in previously unmatched royalties
Updated Rate-Setting Standards
Changed the standard for setting mechanical royalty rates from the old "801(b)" standard to a "willing buyer/willing seller" standard — expected to result in fairer, higher rates for songwriters. Impact: Higher streaming mechanical rates over time
Pre-1972 Sound Recording Protection
Extended federal copyright protection to sound recordings made before February 15, 1972. Previously, these recordings were only protected under a patchwork of state laws, making royalty collection inconsistent. Impact: Royalty payments for classic recordings on streaming
Producers & Engineers Get Credit
Created a process for producers, mixers, and sound engineers to receive royalty payments from SoundExchange. Previously, only featured artists and labels received these digital performance royalties. Impact: New income stream for producers and engineers
Mma Timeline
The Music Modernization Act is introduced in the House of Representatives with broad bipartisan support.
The House passes the MMA unanimously (415-0), a rare feat in modern Congress.
The Senate passes the MMA unanimously (97-0).
President Trump signs the MMA into law.
The Mechanical Licensing Collective (MLC) begins operations, accepting registrations and processing royalties.
Initial "unmatched" royalty pool of $424 million begins distribution process.
MLC processes billions in mechanical royalties. Significant efforts to match unmatched funds to rightful owners.
Copyright Royalty Board (CRB) sets new mechanical rates under the "willing buyer/willing seller" standard — rates increasing annually.
Before & After: Impact On Songwriters
Royalties lost in NOI black holes
Centralized collection through the MLC
Lower rates under 801(b) standard
Fair market rates under willing buyer/seller
No central database of compositions
Comprehensive MLC database with public search
Single blanket license for all DSPs
No path for unmatched royalties
Frequently Asked Questions
Do I need to register with the MLC?
If you want to collect mechanical royalties from US interactive streaming services directly, yes. However, if you use a publishing administrator like JukeHouse, we register with the MLC on your behalf and handle collection.
Does the MMA affect my PRO membership?
No. The MMA and the MLC deal with mechanical royalties. Your PRO (ASCAP, BMI, SESAC) handles performance royalties. These are separate systems. You still need both.
What happened to the unmatched royalties?
The MLC received $424M in unmatched funds. They've been working to match these to rightful owners using their database. Unclaimed funds are eventually distributed to registered members based on market share.
Did the MMA increase songwriter pay?
The MMA changed the rate-setting standard to "willing buyer/willing seller," which was expected to raise rates. The CRB has subsequently set higher rates for 2024-2027, so yes — rates are increasing.
Does the MMA cover international royalties?
No. The MLC only covers US interactive streaming mechanicals. International mechanical royalties are handled by collection societies in each territory. A global admin like JukeHouse covers both.
Take Advantage Of The Mma
The MMA created new collection pathways. JukeHouse ensures you're registered with the MLC and collecting every mechanical royalty the new law makes possible.
Ready to collect what you're owed?
JukeHouse registers, tracks, and collects royalties from 60+ societies worldwide.