Copyright Office Recommends MLC's Distribution of Pre-2021 Unmatched Royalties Not Occur for 5 Years

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The U.S. Copyright Office issued new regulations and best practices for the Mechanical Licensing Collective.

While applauding the new recommendation, songwriter advocacy organizations argue the Copyright Office"did not address the inherent dangers of conflicts of interest present" on the MLC board.

Furthermore, the Copyright Office stated in its guidance that even at the 5-year period, the MLC should apply relevant criteria to determine whether the first distribution should be further deferred.The MLC was created by the Music Modernization Act to collect mechanical royalties from digital services and create a database matching recordings to rights owners.

In response to those worries, publishers have repeatedly noted that the law says the MLC may distribute those royalties after three years—not that the MLC has to distribute the unmatched black box monies. Meanwhile, the MLC itself has said it will exhaust all avenues to get the royalties to the rightful owners, including waiting a longer period, if necessary, before considering making a market share distribution.

 

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