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Music Modernization Act

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Music Modernization Act
Music Modernization Act
U.S. Government · Public domain · source
Short titleMusic Modernization Act
Enacted byUnited States Congress
Date signedOctober 11, 2018
Signed byDonald Trump

Music Modernization Act is a landmark legislation in the United States that aims to modernize the country's music licensing system, providing a more efficient and fair way for songwriters, composers, and music publishers to receive compensation for their work, as supported by American Society of Composers, Authors, and Publishers (ASCAP), Broadcast Music, Inc. (BMI), and National Music Publishers' Association (NMPA). The Act was signed into law by Donald Trump on October 11, 2018, and has been praised by Kenny Rogers, Lionel Richie, and Paul McCartney for its potential to increase royalties for creators. The legislation has also been endorsed by Recording Industry Association of America (RIAA), Songwriters Guild of America (SGA), and Nashville Songwriters Association International (NSAI).

Background and legislative history

The Music Modernization Act was introduced in the United States House of Representatives by Doug Collins and in the United States Senate by Orrin Hatch and Lamar Alexander, with the goal of updating the music licensing system to reflect the changes in the music industry, as discussed by National Academy of Recording Arts and Sciences (NARAS) and Grammy Awards. The bill was supported by a wide range of stakeholders, including Sony/ATV Music Publishing, Universal Music Group, and Warner Music Group, as well as American Federation of Musicians (AFM) and Society of Composers & Lyricists (SCL). The legislation was also influenced by the work of Copyright Royalty Board (CRB) and United States Copyright Office, which have played a crucial role in shaping the music licensing system, as noted by Library of Congress and World Intellectual Property Organization (WIPO).

Key provisions

The Music Modernization Act includes several key provisions, such as the creation of a new mechanical licensing collective, which will be responsible for collecting and distributing royalties to songwriters and music publishers, as outlined by Mechanical Licensing Collective (MLC) and Digital Licensing Center (DLC). The Act also establishes a new system for royalty rates, which will be set by the Copyright Royalty Board (CRB), with input from National Association of Broadcasters (NAB) and Consumer Technology Association (CTA). Additionally, the legislation provides a new framework for music licensing, which will allow for more efficient and transparent licensing processes, as supported by Harry Fox Agency (HFA) and Music Reports.

Support and opposition

The Music Modernization Act has received widespread support from the music industry, including from Taylor Swift, Kanye West, and Lady Gaga, as well as from Country Music Association (CMA) and Academy of Country Music (ACM). The legislation has also been endorsed by Tech companies such as Google, Amazon, and Apple Music, which have recognized the need for a more modern and efficient music licensing system, as discussed by Consumer Electronics Association (CEA) and Information Technology Industry Council (ITI). However, some stakeholders, such as Pandora Radio and Sirius XM, have expressed concerns about the potential costs and complexities of implementing the new system, as noted by Federal Communications Commission (FCC) and Department of Justice (DOJ).

Implementation and impact

The implementation of the Music Modernization Act is being overseen by the United States Copyright Office and the Copyright Royalty Board (CRB), with input from National Music Council (NMC) and Music Education Policy Roundtable (MEPR). The new mechanical licensing collective is expected to be established by 2020, and will begin collecting and distributing royalties to songwriters and music publishers, as outlined by SoundExchange and Alliance of Artists and Recording Companies (AARC). The Act is expected to have a significant impact on the music industry, with potential benefits for songwriters, composers, and music publishers, as well as for music streaming services such as Spotify and Tidal, as discussed by International Federation of the Phonographic Industry (IFPI) and Worldwide Independent Network (WIN).

The Music Modernization Act has faced several legal challenges, including a lawsuit filed by Pandora Radio and Sirius XM, which argued that the new royalty rates set by the Copyright Royalty Board (CRB) were too high, as noted by United States District Court for the Southern District of New York and United States Court of Appeals for the Second Circuit. However, the court ultimately ruled in favor of the Copyright Royalty Board (CRB), upholding the new royalty rates, as supported by American Bar Association (ABA) and Intellectual Property Owners Association (IPO). The Act has also been subject to review by the United States Court of Appeals for the D.C. Circuit, which has considered challenges to the constitutionality of the legislation, as discussed by Harvard Law Review and Yale Law Journal. Category:United States copyright law