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Mechanical Licensing Collective Seeks $37.25 Million For Startup Costs

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WASHINGTON D.C. (CelebrityAccess) — The Mechanical Licensing Collective, a new organization to oversee the new nationwide blanket license system for mechanical rights created by the Orrin G. Hatch-Bob Goodlatte Music Modernization Act, proposed a one-time assessment of $37.25 million to cover the ‘start-up’ costs for 2020 as it prepares to take over licensing for digital music providers.

Once the MLC goes into effect on January 21st, 2021, it projects an assessment of $29 million for its first year it’s blanket licensing operations.

Under the terms of the legislation, the assessments will be paid entirely by the digital services covered under the blanket license system.

“The proposed assessment is the right one under the law, and the budget is very reasonable for digital companies to pay to receive the benefits the blanket license will provide them,” the MLC said in a statement announcing the assessment.

“The MLC’s operating budget and staff must be capable of comprehensively meeting and executing the extensive requirements and responsibilities of the Collective under the law in less than 15 months from now,” the MLC added.

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