The MLC Still Can’t Show the Money

[Editor Charlie sez: Everyone paying attention knew from the time they stopped calling it SIRA II and started calling it Music Modernization Act (a title that conveys exactly zero information about the subject of the bill) that the legislation was designed to lock in the Harry Fox Agency’s death grip on songwriters. And therefore also knew for years that the MLC would be run by the majors and would be serviced by the same HFA database that resulted in many lawsuits against Spotify for being unlicensed. So if the HFA is the best of breed and the gold standard and all the other euphemisms for mediocrity that MLC threw out there, they should have been standing ready to match the $474 million in unmatched that got paid after the 1/1/21 “license availability date” because of their super duper song matching capability. Not only have HFA apparently not matched the lions share of the $474 million, what the MLC has announced as matched is for services that HFA did no work for that we know of. And remember, this is not a cost issue because the services are paying for the cost.

“Give them a chance” you will be told by the smart people, particularly by the non-oversight of the Copyright Office. They had their chance. The game was rigged to begin with–and overseen by the head of lobbying for Spotify. If they’d spent less time rigging the game and less time giving each other awards and listening to the sound of one back slapping, we would not have this problem.

But don’t worry, no one will get fired because you can’t be late if there are no deadlines. And now…back to sleep.]

Many Did Not Feel Their Voice Was Heard on Music Modernization Act

We will release the results of our most recent MLC awareness questionnaire soon, but here’s an interesting data point: 47% of respondents did not feel their voice was heard in crafting the Music Modernization Act. It would be interesting to see if any other survey has asked that question and what the results were.

@musictechpolicy: How Songwriters Get Screwed by Cheese and Pies

For some reason, there’s a focus at the moment on songwriter royalties and in particular for streaming royalty rates.  Notice that I said “rates” not “share” or the one I find particularly irritating, “share of the pie.”  Let us be clear—there is no “pie” there are only “rates”.  Or should be.  Let’s investigate why.

To frame this idea (speaking for the U.S. market), let me take you back to a conversation I had with a Nashville session musician and hit songwriter many years ago back before physical mechanical royalty rates were frozen.  

He looked at me and said, “Why do I have to take this government cheese royalty rate?  I get double scale when I play a date, why can’t I get double stat?”  

What he was really saying was why can’t I set my own price as a songwriter for mechanical royalties?  And the answer is the same today as it was then:  Because songwriters allow the U.S. government to set the price and terms for mechanicals.  Or rather the “minimum statutory rate” which is a joke because the “minimum statutory rate” has never been a minimum, it has always been both a minimum and a maximum.

There has also long been an obsession with songwriters and publishers comparing their rates to what artists and record companies get.  This comparison was only compounded in the digital era particularly for interactive streaming.  If you combine song rates and recording rates, some people get a pie.  Other people (like me) get an error message.  I’ll explain why.

Read the post on MusicTechPolicy

Please take our MLC Survey

Please take a moment and complete our new anonymous 10 question survey regarding The Mechanical Licensing Collective (“The MLC”) at this link. We’re gathering general anonymized information about how songwriters and publishers have heard about The MLC and whether you think an independent advocate (or an “ombudsman”) would be useful to you. This will help us plan future programming and input.

The survey is available to everyone and will be open until March 31, 2021.