Many organizations representing American artists and songwriters applauded the U.S. Copyright Office’s ruling reaffirming termination rights under the Music Modernization Act (MMA).
The rule clarifies that songwriters are entitled to collect mechanical royalties generated by streaming platforms such as Spotify, Apple and Amazon after termination rights are invoked (i.e. when they recover rights from another party (in this case, the music publisher)) .
In the United States, songwriters have the right to “terminate the grant of exclusive or non-exclusive assignments or licenses” after 35 years for works written after 1978 (56 years for works written before 1978/copyright granted).
The ruling, published today (July 9) and the full text of which can be read here, confirms that the so-called “derivative works exception” does not apply to blanket licenses under Section 115 of the Copyright Act.
Compulsory licenses in the United States, also known as 115 licenses (because it is provided for under Section 115 of the Copyright Act), are administered by the United States Mechanical Licensing Collective (MLC).
Established under the Music Modernization Act of 2018, MLC is the only entity in the United States authorized to develop and administer a mechanical licensing system.
In October 2022, the U.S. Copyright Office issued a Notice of Proposed Rulemaking (NPRM) regarding the applicability of the derivative works exception to the right of termination under the Copyright Act to statutory blanket mechanical licenses.
USCO alleges that it initiated proceedings after the Mechanical Licensing Collective adopted a “termination dispute policy” that conflicted with prior Bureau of Labor guidance and was based on questions about how the Copyright Act’s derivative works termination rights exception applies to statutory machinery. Misinterpretation of blanket permission.
MLC’s policy is based on its interpretation of the “derivative works” exception in Title 2 of the United States Copyright Law that specifically addresses copyright ownership and transfer.
According to U.S. copyright law, “Derivative works prepared under the License before the license is terminated may continue to be used under the terms of the License after the license is terminated.”
As the Authors Union explained in 2022, the MLC adopts a policy that “publishers will always receive royalties from a work as long as the publisher actively licenses the work and uses it at least once before the termination date.” ‘s creator”.
Ruling announced today provides for songwriters to terminate their rights yes The right to receive compensation for the use of its work after termination under the general license.
The Music Artists Alliance said today’s decision was “a major victory for songwriters and creators, ensuring they receive fair compensation when they reclaim their copyrights.”
The MAC’s announcement today states that the Copyright Office’s decision requires the Mechanical Licensing Collective to “implement corrective royalty adjustments to correct prior misuse of the derivative works exception.”
It also provides detailed guidance on handling transfers of ownership, changes in royalty payees, and related disputes in the event of termination.
This rule takes effect on August 8, 2024.
“We welcome the Office’s guidance for rights holders on this important topic.”
MLC spokesperson
In a statement to MBW, an MLC spokesperson said: “We welcome the guidance the office is providing rights holders on this important topic.
“With the long-awaited final rule now available, the MLC can begin working to implement its requirements, including the release of funds we had previously withheld prior to the rule, in accordance with the timeline provided by the office.”
“This ruling by the Copyright Office is a landmark victory for songwriters and the entire music industry.
Jordan Bromley, MAC
Musical Artists Alliance (MAC) board member Jordan Bromley said: “This ruling by the Copyright Office is a landmark victory for songwriters and the music industry as a whole. By confirming how the right to terminate applies With blanket licensing, the Office affirms the basic principle that creators should benefit from their works.
“The Music Artists Alliance has long advocated for this change, and we are pleased to see it come to fruition. This decision not only ensures that songwriters who reclaim their rights are fairly compensated, but sets a precedent that strengthens copyright law in the digital age. Basics. It’s a clear message that in the ever-evolving world of music streaming and licensing, creators’ rights must be protected and respected.
“The Black Music Action Alliance is proud to partner with MAC, SONA and our other advocacy groups to help complete this landmark ruling from the U.S. Copyright Office.”
Willie “Prophet” Stiggs, BMAC
Willie “Prophet” Stiggers, co-founder, president and CEO of BMAC, said: “The Black Music Action Alliance is proud to partner with MAC, SONA and our other advocacy groups to help complete this landmark ruling from the U.S. Copyright Office.
“BMAC’s top priority is fighting to protect the rights of Black music creators and amplifying the larger movement for justice within the music industry, which makes us extremely pleased to celebrate this decision.”
“North American Songwriters Applauds U.S. Copyright Office’s Ruling Clarifying Songwriters’ Termination Rights.”
Jack Kugel “SONA”
“North American songwriters applaud the U.S. Copyright Office’s ruling clarifying songwriters’ termination rights,” said Jack Kugell, SONA Board Member and Advocacy Committee Co-Chair.
“This highly anticipated decision is a huge victory and confirms that existing copyright laws can be interpreted fairly and correctly. As an advocacy group led by and for songwriters, we sincerely thank USCO for not only Listen to the songwriter, but also listen to the songwriter.
“We are very pleased that the Copyright Office has confirmed MLC’s approach to ensuring that songwriters receive appropriate and expeditious compensation upon termination.”
David Israelite, NMPA
NMPA President and CEO David Israelite said, “We are pleased that the Copyright Office has recognized the MLC’s approach to ensuring that songwriters receive appropriate and expeditious compensation upon termination of their contracts.
“Having clear guidance on this issue will make the MLC and the wider industry more efficient as it provides a clear roadmap for those who decide to take back their copyrights. Songwriters groups are working with the Copyright Office and music publishers to promote this The decision deserves high praise.
“NSAI has been at the forefront of this issue for many years and is grateful to USCO and other organizations and individuals for their time and effort in reaching this conclusion for America’s Songwriters.”
Nashville Songwriters International
The Nashville Songwriters Association International (NSAI) also issued a statement, noting that it “strongly applauds the U.S. Copyright Office’s (USCO) decision to terminate songwriters through the Mechanical Licensing Collective (MLC.)”
It added: “We believe the 117-page document correctly interprets copyright termination laws as they apply to the blanket digital mechanical licenses administered by the MLC, allowing the MLC to now pay songwriters whose copyright agreements have been terminated any funds they hold and interest – and retroactive correction of payments to owners prior to termination.
“Furthermore, this rule confirms the MLC’s practice of paying the copyright holder of the record at the time of payment in most cases, which will ensure more money flows to songwriters in the most efficient manner.
“NSAI has been at the forefront of this issue for many years and is grateful to USCO and other organizations and individuals for their time and effort in reaching this conclusion for America’s Songwriters.”
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