June 22, 2023

Volume XIII, Number 173

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

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 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 contributed to this article. She is a Law Clerk in the SheppardMullin New York office. 

Copyright © 2023, Sheppard Mullin Richter & Hampton LLP.National Law Review, Volume XIII, Number 170
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About this Author

Sarah Ben-Moussa Corporate Attorney Sheppard Mullin
Associate

Sarah F. Ben-Moussa is an associate in the Corporate Practice Group in the firm's New York office.

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