MLC Limited

The Mechanical Licensing Collective (The MLC)

The Mechanical Licensing Collective (The MLC) is a groundbreaking non-profit organization established under the authority of the U.S. Copyright Office. Its primary function, as mandated by the Music Modernization Act (MMA) of 2018, is to ensure songwriters, composers, lyricists, and music publishers receive their rightful mechanical royalties from digital music services—specifically those derived from streaming and downloads—in a timely and accurate manner. This crucial role has significantly reshaped the landscape of music rights management in the United States.

Overview

Established in 2019, The MLC began its operation on January 1, 2021, issuing blanket mechanical licenses to digital service providers (DSPs) across the United States. This marked a pivotal moment, streamlining the complex process of royalty distribution and providing a much-needed centralized system for managing mechanical rights. The MLC's impact has been substantial, exceeding $2 billion in total royalty distributions to rights holders by 2024.

Key Milestones in The MLC's History:

• 2019: The MLC is established as a result of the Music Modernization Act (MMA).
• 2021: Commences operation, administering blanket mechanical licenses to DSPs.
• 2022: Surpasses $500 million in distributed royalties and launches a new Student Ambassador program.
• 2023: Continues substantial royalty distribution with the Copyright Royalty Board finalizing the Phonorecords III (Phono 3) rate determination.
• 2024: Achieves a remarkable milestone of $2 billion in total royalties distributed to rights holders.

Regulatory Compliance and Licenses

The MLC operates under the legal framework provided by the U.S. Copyright Office and the Music Modernization Act. Its designation includes the critical responsibility of constructing and managing a comprehensive global data clearinghouse. This system is designed to efficiently and accurately track the usage of musical works across various digital platforms operating within the United States, ensuring that the correct royalties reach the appropriate rights holders. This systematic approach significantly improves transparency and accountability within the industry.

Customer Service and Support

The MLC is committed to supporting its members through various channels. These resources aim to simplify the process of registering works, understanding royalty payments, and navigating the complexities of mechanical licensing. Key support channels include:

• Educational Webinars: Regularly scheduled webinars provide valuable insights and guidance on various aspects of mechanical licensing and royalty collection.
• Public Search API: This powerful tool allows users to search and verify data related to musical works, promoting transparency and accuracy.
• Creator and Publisher Portal: A dedicated online portal enables creators and publishers to efficiently manage their musical works data, submit information, and track their royalties.

While specific details regarding 24/7 support and multilingual assistance are not publicly available, the MLC's dedication to transparency and member support suggests that a robust customer service system is in place to address member inquiries and concerns in a timely and efficient manner.

Pros and Cons of The MLC

Pros:

• Efficient Royalty Distribution: The MLC's track record demonstrates its ability to distribute royalties promptly and accurately, fulfilling its core mission of ensuring timely payment to rights holders.
• Transparency: The publicly accessible musical works database fosters transparency, allowing creators and publishers to track the usage of their works and monitor royalty payments.
• Member Support: The MLC provides comprehensive member support through various initiatives like the Play Your Part campaign and educational resources, aiming to empower its members and streamline the process of managing their mechanical rights.

Cons:

• Complexity of Initial Setup: The process of registering musical works and preparing the necessary data can be complex for some creators and publishers. However, the MLC offers resources like the Data Quality Initiative and the Music Data Organization Worksheet to assist with this process.
• Dependence on DSPs: The MLC's operational funding relies on contributions from DSPs. This dependence could potentially influence operational decisions, though this is mitigated by the organization's transparent reporting and governance structure.

Conclusion

The Mechanical Licensing Collective stands as a significant achievement in music rights management. Its innovative approach to royalty distribution has dramatically improved the efficiency and accuracy of payments to songwriters, composers, lyricists, and music publishers. By prioritizing transparency, member support, and robust operational systems, the MLC has become a cornerstone of the modern music industry and a model for effective collective management organizations (CMOs) worldwide. Its continued success hinges on adapting to the evolving digital music landscape and maintaining its commitment to fairness and efficiency in royalty distribution.

Frequently Asked Questions about The MLC

For detailed answers to common questions, please refer to The MLC's official website. However, here are some key areas often addressed:

• How to Become a Member: Membership involves registering your musical works data through the MLC's online portal. This ensures that your works are included in the royalty distribution system.
• Royalty Distribution Process: The MLC typically distributes royalties on a monthly basis. Specific details on payment timing and procedures are readily available on their website.
• Play Your Part Initiative: This initiative underscores the importance of accurate data registration and encourages members to actively participate in ensuring that all mechanical royalties are properly accounted for.

References

[1] https://www.themlc.com/milestones

[2] https://www.mlc.com

[3] https://www.copyright.gov/rulemaking/mma-designations/2024/initial-submissions/mlc-initial-submission-2024.pdf

[4] https://www.themlc.com/our-story

[5] https://www.themlc.com