With the passage of the Music Modernization Act, a new entity called the MLC (Mechanical Licensing Collective) will be established.
The MLC will have a board of directors responsible for its initial formation and then running it to achieve the goal of getting 100% all music publishers and songwriters paid their streaming mechanical royalties.
To accomplish these goals, the board must be responsible for:
Making decisions on how earned but unpaid royalties should be made available for identification and claiming by the rightful owners, or ultimately distributed to others based on their market share
The process for the collection and distribution of royalties
Establishing an easy way for rightsholders to register and get paid
Holding royalties earned but not yet paid and accountability for the distribution of these royalties
Providing a way to resolve disputes over who owns the song
The creation of a “Musical Works Database” that can be used by entities looking to license music
Verification of the payments made by the Mechanical Licensing Collective
Keeping accurate records of all the activities of the Mechanical Licensing Collective
The skill set and knowledge needed to accomplish these goals is unique; a combination of understanding U.S. copyright laws, technology, administration, songwriting and “big data” combined with the passion and drive to ensure everyone is paid what they have actually earned.
The days of paying all the money to just some rights holders using guesstimates and “black boxes” must be replaced by the use of efficient technology to pay all rights holders what they actually earned.