The Music Modernization Act (MMA) is one of the biggest updates to music law in decades, as it transforms the way streaming royalty rates are set and allows songwriters to see more transparency and compensation for their work.
Before this law was passed in 2018, the rules around paying songwriters were outdated and confusing. Streaming had taken over, but the systems paying creators were stuck in the CD era.
The MMA changed that by replacing the 1909 copyright laws that governed mechanical royalties, as well as the consent decree regulations from 1941 for ASCAP and BMI songwriter performance royalties. Now, rates will be based on what songs are worth in the music marketplace and songwriters will be more fairly compensated.
The MMA is made up of three major parts:
The Mechanical Licensing Collective (MLC)
The MLC is the organization that now collects and pays digital mechanical royalties for songwriters and publishers. Before the MMA, each streaming service was responsible for its own mechanical licensing. Now, they all route the royalties to the MLC, which then pays the songwriters and publishers. It made the process easier, more accurate, and more transparent.
The CLASSICS Act
Before the MMA, recordings made before 1972 didn’t automatically receive federal copyright protection. That meant older artists were often unpaid when their songs were streamed. The MMA fixed this by giving pre-1972 recordings modern copyright protection and making streaming services pay these artists fairly.
The AMP Act
This helps producers, mixers, and engineers get paid for their work. It created a simple system for them to receive digital performance royalties through SoundExchange, something many of them struggled to get before.
Why the MMA matters for songwriters:
- It made royalty systems clearer and more modern.
- It pushed streaming companies to follow the same rules.
- It created one unified place (the MLC) to handle mechanical royalties.
- It increased fairness for older musicians and behind-the-scenes creators.
Overall, the Music Modernization Act brought the music industry into the streaming age — making sure songwriters, artists, and producers get the credit and pay they deserve.
