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{"id":101122,"date":"2020-12-29T13:16:59","date_gmt":"2020-12-29T18:16:59","guid":{"rendered":"https:\/\/celebrityaccess.com\/?p=101122"},"modified":"2020-12-29T13:16:59","modified_gmt":"2020-12-29T18:16:59","slug":"mechanical-licensing-collective-prepares-for-january-1st-launch","status":"publish","type":"post","link":"https:\/\/dev.celebrityaccess.net\/2020\/12\/29\/mechanical-licensing-collective-prepares-for-january-1st-launch\/","title":{"rendered":"Mechanical Licensing Collective Prepares For January 1st Launch"},"content":{"rendered":"

(Hypebot<\/a>) — Beginning on January 1st of 2021, the rollout of a new blanket mechanical license as laid out in the Music Modernization Act will begin. Here is what ir means for artists and the industry as a whole.<\/p>\n

By\u00a0Emmanuel Legrand<\/strong>\u00a0of the\u00a0Legrand Network<\/a><\/em><\/p>\n

Starting on January 1, 2021, the provision in the\u00a0Music Modernization Act <\/strong>of 2018 (MMA) establishing a new blanket mechanical license covering the use of musical works in the US\u00a0by eligible digital audio services will come into force. It will replace the previous system which required digital services to obtain licenses from all rights holders to operate.<\/p>\n

From Jan.1 too, the\u00a0Mechanical Licensing Collective\u00a0<\/strong>(The MLC) will start operating officially to administer the blanket license. It will work alongside the\u00a0Digital Licensee Coordinator\u00a0<\/strong>(DLC), which\u00a0regroups the digital audio services that will be operating under the new blanket license.<\/p>\n

The MLC said that the arrival of this new blanket licensing system \u201cwill mark the beginning of a new era of greater efficiency and transparency in mechanical licensing for musical works in the United States.\u201d The organization has been building up throughout 2020, and operating mostly virtually due to the pandemic.<\/p>\n

Reaching out to DSPs<\/strong><\/h3>\n

Based in Nashville, it will start issuing licenses to\u00a0digital service providers and start collecting royalties from the use of musical works by audio services.\u00a0The MLC has been engaged two main initiatives: reaching out to the music publishing community and self-administered songwriters, to ensure that their works were entered in the society\u2019s database; and reaching out to DSPs to ensure that they understand the new framework and make the necessary changes from Jan. 1, 2021.<\/p>\n

The MLC\u2019s DSP outreach efforts have been led by\u00a0Richard Thompson\u00a0<\/strong>(Chief Information Officer),\u00a0Abel\u00a0Sayago\u00a0<\/strong>(DSP Onboarding Consultant),\u00a0Joya Carmichael\u00a0<\/strong>(Head of Operations) and consultant\u00a0Vickie\u00a0Nauman<\/strong>. Among the benefits for DSPs that opt in for\u00a0the blanket license is the\u00a0protection from liability that would arise from using works that were not properly licensed.\u00a0DSPs that wish to operate under the blanket license must submit their Notice of License to The MLC using the form provided by The MLC no later than February 15, 2021.<\/p>\n

A service that elected not to secure the blanket would still have to\u00a0abide by a number of reporting obligations. By US\u00a0law, DSPs that provide more than 5,000 unique works to US\u00a0consumers via interactive streaming or downloads on any given day in a given month or earn more than $50,000 a month (or $500,000 over 12 months) from such activities \u201cmust report their usage data to The MLC, whether or not they choose to obtain the new blanket license.\u201d<\/p>\n

Outlining reporting specifications<\/strong><\/h3>\n

\u201cThe MLC has engaged with more than 50 DSPs so far, both to make sure they aware of their new legal responsibilities and to preview the resources we\u2019ve created for them, including reporting specifications and the templates for notices to The MLC,\u201d said The MLC CEO\u00a0Kris\u00a0Ahrend\u00a0<\/strong>(pictured, below), who added that these efforts \u201cshould ensure that currently-operating DSPs are in a position to begin operating under the new blanket license starting on January 1, 2021.\u201d<\/p>\n

<\/figure>\n

Garrett Levin<\/strong>, representative for DLC, and CEO of\u00a0DiMA<\/strong>, which represents digital services, said the\u00a0DLC has also conducted its own outreach activities. \u201cAs we approach this watershed moment in digital music licensing, DLC has spent countless hours working with DSPs to ensure they understand and are able to successfully navigate this new licensing regime. Through individual outreach sessions, educational programming and collaborative outreach coordinated with The MLC and Copyright Office, we have laid the groundwork for The MLC to efficiently and effectively fulfill its mandate.\u201d<\/p>\n

On the data side, The MLC has been building from the database of\u00a0HFA<\/strong>, which has been picked a the main data provider. In parallel, The MLC has invited music publishers and self-administered songwriters to enter and check their data in the database.\u00a0The database will also include public domain works.<\/p>\n

A new DDEX standard<\/strong><\/h3>\n

The MLC recently conducted a webinar to explain how large owners of compositions can access bulk data, as required by the MMA, which specifies that The MLC has to make available its database in \u201cbulk, machine-readable format through a widely available software.\u201d<\/p>\n

The MLC CIO\u00a0Richard Thompson said the files would include\u00a0data on musical works,\u00a0data on parties (creators of musical\u00a0works) and representatives (publishers,\u00a0administrators or domestic and international\u00a0CMOs), data on sound recording (and their link to musical works), data of products\/releases (and their links to sound recordings). Not included in the package is\u00a0payment information, such as bank details and payments made. \u201cWe are talking about data on catalogue rather than confidential information,\u201d said Thompson.<\/p>\n

The MLC has started to work in November\u00a02019 with global music data agency\u00a0DDEX<\/strong>, and went through a collaborative process to elaborate a standard applicable to The MLC data. \u201cAbout 30 organizations\u00a0have\u00a0participated to develop the best standard,\u201d said Thompson.\u00a0The process was finalized in November\u00a0and DDEX has\u00a0issued<\/a>\u00a0a new standard named\u00a0BWARM\u00a0<\/strong>(Bulk Communication of Works And Recording Metadata), that sits alongside\u00a0other DDEX standards as well as borrowing from them \u201cquite heavily.\u201d
\n<\/p>\n

The bulk database is available to vendors and DSPs free of charge, and\u00a0will be available to other parties at a fee \u201cthat does not exceed the marginal cost of providing the database,\u201d said Thompson. A\u00a0one-time set-up fee of $100 allows to\u00a0download the database for one month, and if users want\u00a0continuous access, it will cost $25 a month, and the subscription can be canceled any time. \u201cIt is not a money making exercise,\u201d said Thompson. \u201cIt is designed to cover marginal costs and we will agree that it is pretty low, at $300 a year if want to access that data.\u201d He added that for the moment, the pricing model for accessing the data through the API, which will happen in 2021, will be different but has not been set yet.<\/p>\n

Some 112 data points<\/strong><\/h3>\n

How it works to access the file? The MLC will\u00a0take a \u201csnapshot\u201d of the data once a week and make\u00a0available<\/a>\u00a0for download, via a log in on MLC site. \u201cThe first snapshot will be available early in January,\u201d said Thompson, who indicated that the size of the file (25G) would require other software than\u00a0Excel<\/strong>. Each snapshot contains all the data, including data pertaining to unclaimed works, and it cannot be tailored to specific needs.<\/p>\n

The webinar gave a sense of the complexity of the data collected. Datasets contain all rights holders and their percentage of ownership and multiple links between datasets. Musical works listed in the database come from MLC members (publishers, administrators, songwriters or international CMOs) as well as from DSPs, which will provide The MLC with monthly reports of all the works used on the services during the period. \u201cThat\u2019s a lot of sound recordings and the vast majority will come from that,\u201d said Thompson.<\/p>\n

Raphael Amselli<\/strong>, MLC technical consultant for data, outlined the various datasets that will be part of the database. The data is split in 12\u00a0tables, with each table\u00a0communicated in separate data files. \u201cAll the data is\u00a0separated\u00a0in tables and everything\u00a0is interlinked,\u201d said\u00a0Amselli. \u201cWe\u00a0have 112 data fields, so that\u2019s a lot of data points.\u201d<\/p>\n

A wide range of fields<\/strong><\/h3>\n

The data will feature the following fields:<\/p>\n

> Data on Parties:
\n<\/strong>This relates to songwriters, who are an \u201cessential component,\u201d publishers, administrators, CMOs that participate in collecting and representing the musical works.\u00a0Parties are interlinked to all parts of the scheme, every\u00a0core component.\u00a0Fields include:\u00a0Party name(s),\u00a0Party identifiers,\u00a0Party contact information.<\/p>\n

<\/p>\n

\u00a0> Data on musical works:<\/strong>
\nFields include: Work title, various\u00a0identifiers (MLC song code, ISWC, proprietary identifiers),\u00a0Work shares and roles in the works (if they are composer, lyricist, pub, administrator, etc).<\/p>\n

<\/p>\n

> Data on sound recordings:<\/strong>
\nFields include:\u00a0Recording title,\u00a0Display artists, Recording identifiers\u00a0(ISRC, proprietary identifiers), Links between musical works and song record (the\u00a0\u201ckey component that links everything together\u201d said Amselli).<\/p>\n

\"\"<\/figure>\n

\u00a0> Data on products:<\/strong>
\nProducts are linked to a recording.\u00a0Fields include: Product titles,\u00a0Display artists and\u00a0Product identifiers (ICPN, such as bar codes).<\/p>\n

\"\"<\/figure>\n

> Data on unmatched and unclaimed works:<\/strong>
\nThis segment will include works for which partial or full data is not available.<\/p>\n

\"\"<\/figure>\n","protected":false},"excerpt":{"rendered":"

(Hypebot) — Beginning on January 1st of 2021, the rollout of a new blanket mechanical license as laid out in the Music Modernization Act will begin. Here is what ir means for artists and the industry as a whole. By\u00a0Emmanuel Legrand\u00a0of the\u00a0Legrand Network Starting on January 1, 2021, the provision in the\u00a0Music Modernization Act of<\/p>\n","protected":false},"author":29,"featured_media":84675,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_stc_notifier_status":"sent","_stc_notifier_sent_time":"2020-12-29 13:32:58","_stc_notifier_request":false,"_stc_notifier_prevent":false,"_stc_subscriber_keywords":"","_stc_subscriber_search_areas":"","footnotes":""},"categories":[51,75,22,77],"tags":[8999],"class_list":["post-101122","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-breaking-news","category-business-news","category-industry_news","category-techn-news","tag-mlc"],"acf":[],"yoast_head":"\nMechanical Licensing Collective Prepares For January 1st Launch - CelebrityAccess<\/title>\n<meta name=\"description\" content=\"(Hypebot) -- Beginning on January 1st of 2021, the rollout of a new blanket mechanical license as laid out in the Music Modernization Act will begin. 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