[Editor Charlie sez:  Where is the olive branch from MLCI to AMLC?]

Under the Music Modernization Act (MMA), we now have a new system for licensing musical works that should help ensure the songwriters behind our favorite tunes can be properly identified and paid. And as part of the implementation of this historic law, just last week, the Copyright Office designated the Mechanical Licensing Collective, Inc. (MLCI) as the approved entity to implement key aspects of this new system, and the Digital Licensing Collective, Inc. (DLCI) to represent the interests of digital music services. Pursuant to the MMA, the MLCI will receive notices and reports from digital music providers, collect and distribute royalties, identify musical works and their owners for payment, and develop and maintain a publicly available database of musical works.

In designating the MLCI, the Office highlighted the support for the entity among musical work copyright owners and the organization’s projected ability to carry out the administrative and technological functions necessary to implement the law. The Office also highlighted the MLCI’s commitment to diversity in carrying out its duties. As part of its submission to the Office, the MLCI offered a detailed operational framework, reflecting substantial planning with respect to organizational structure, vendor selection, and collection and distribution procedures of royalties. At the same time, the Office appreciated the important submission of the other entity seeking to be designated, the American Music Licensing Collective (AMLC), and recommended that the MLCI consider whether aspects of the AMLC’s proposal should be incorporated into the MLCI’s future planning. Now that the designation process has been completed, the expectation is that the MLCI will fairly and equally represent the interests of all parties, including those who did not previously endorse it, and that key players such as the DLCI and the MLCI will build upon the cooperative spirit facilitated by the MMA’s passage to work together to make the implementation of this historic new licensing scheme a success.

Following designation, the Copyright Office will now turn toward ensuring that the proper regulatory procedures are in place prior to the upcoming license availability date of January 2021, when the new system will be fully operational. Over the next several months, we will begin rulemakings relevant to the MMA, as well as substantial public outreach, including a tutorial explaining the basics of the new law, a webinar, updated educational circulars, and presentations at music industry conferences. We encourage interested parties to check back on our website regularly for updates.

Read the post on the Copyright Office blog.