The After Effects of the Music Modernization Act in the Digital Streaming Sphere

Sheppard Mullin Richter & Hampton LLP
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Sheppard Mullin Richter & Hampton LLP

[co-author: Ines Briand*]

The Orrin G. Hatch–Bob Goodlatte Music Modernization Act, or Music Modernization Act (“MMA”), signed into law on October 11, 2018, has transformed the music streaming industry in the years since its implementation. The legislation was passed with the aim of modernizing copyright issues related to audio recordings and adapting to new technologies, such as digital streaming. The MMA combines three pieces of legislation enacted previously into one: (i) the Musical Works Modernization Act, (ii) the Classics Protection and Access Act, and (iii) the Allocation for Music Producers Act.

These updates to licensing rules and licensing rules have had a positive impact on songwriters, artists, music producers, engineers and creators and include, but are not limited to, the following:

  • Creating a Mechanical Licensing Collective (MLC) whose sole purpose is to collect and distribute royalties on behalf of the artists.
  • Changing how digital music providers and others obtain licenses for the broadcast of music compositions.
  • Closing loopholes inherited from the previous laws to allow for greater protection of artists.

In Episode 20 of our French Insider podcast, we sat down with Dan Mackta, Managing Director in the United States of Qobuz, an unlimited music streaming platform and high resolution online store, founded in 2007, to talk about the MMA, as well as the expansion of Qobuz into the American market. Check out the podcast episode by clicking here.

*Ines Briand is a law clerk in the firm’s New York office.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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