Mechanical Licensing Collective
Also known as The MLC, MLC
Last reviewed · 3 sources · Markdown
Short answer
The Mechanical Licensing Collective (The MLC) is a nonprofit organization, designated by the U.S. Copyright Office under the Music Modernization Act of 2018, that administers the blanket mechanical license for digital audio services in the United States. Since January 2021 it has collected mechanical royalties from streaming and download services and paid them to music publishers and self-administered songwriters.
Role
Before 2021, a streaming service in the United States had to obtain a mechanical license work by work, and large amounts of royalties went unmatched. Title I of the Music Modernization Act replaced that with a single blanket license available to any eligible digital service, and created a collective to administer it.[1] The Copyright Office designated The MLC as that collective.[2]
What it does
Digital services send The MLC monthly usage reports and pay the mechanical royalties due. The MLC matches each reported recording to the musical work it embodies, looks up the registered owners and their shares, and pays them. It maintains a public database of works and ownership, and its operating costs are funded by the digital services rather than deducted from songwriters' royalties.[3]
Unmatched royalties
Royalties that cannot be matched to an owner are held while the collective tries to identify them. Under the statute, money that remains unclaimed after the holding period can be distributed to copyright owners in proportion to market share, which is why songwriters and publishers are urged to register their works and claim their shares.[1]
What it does not cover
The MLC handles mechanical royalties for digital uses in the United States only. It does not collect performance royalties, which go through performing rights organizations, nor anything for the master recording, nor mechanicals from other countries.
Questions
Should independent songwriters register with The MLC?
A self-administered songwriter — one without a publisher or administrator — needs to register with The MLC directly to receive US streaming mechanical royalties. Writers with a publisher are registered through it.
Does The MLC charge songwriters a fee?
Its administrative costs are paid by the digital services through an assessment, not deducted from the royalties it distributes.
Is The MLC the same as a PRO?
No. The MLC collects mechanical royalties for US digital uses; PROs collect performance royalties. A US stream generates both.
References
- U.S. Copyright Office. “The Music Modernization Act.”
- U.S. Copyright Office. “Designation of Mechanical Licensing Collective and Digital Licensee Coordinator.”
- The MLC. “The Mechanical Licensing Collective.”