Music Modernization Act updates music licensing and payment for artists

After passing unanimously through the Senate, President Trump signed the Music Modernization Act into law on Thursday, October 11.

The new act updates US copyright and licensing requirements that will better fit the streaming era and promises greater compensation for the artists whose music gets streamed online.

The act will also create a single licensing database, called the Mechanical Licensing Collective (MLC), that will make it easier to identify who owns the rights to what piece of music. It will be the job of the MLC to make sure that both artists and labels receive the correct payouts for the material they own.

Rolled into the act is a piece of legislation titled the Allocation for Music Producers Act. The action from the US government ensures better royalty payouts from online and satellite radio for both producers and music engineers.

[Image: Getty Images]