Hot on the heels of a story we published yesterday about SoundCloud’s expanded monetization program, even bigger news comes today from the White House. President Trump has signed a long-awaited bill into law called the Music Modernization Act. This is significant news for musicians and songwriters, as it’s one of the biggest changes to happen to copyright laws in decades.

At a high-profile event at the White House with celebrity attendees like Mike Love from the Beach Boys and Kid Rock, President Trump called the Music Modernization Act a milestone that would “close loopholes” in copyright law and help music creators get paid.

What is the Music Modernization Act?

In a nutshell, this law will give musicians, artists, and songwriters better compensation for their work in a modern digital world. In the ever-changing music industry, and at a time when music streaming is growing astronomically by the minute, many laws are now outdated or were created before digital platforms even existed.

Officially labeled H.R. 1551, the Music Modernization Act achieves these three things:

MMA 

MMA or the Music Modernization Act will update licensing and royalty rules for streaming services to pay rights-holders in a more streamlined fashion. It will also include the creation of a public database that will make it easy to see who should be compensated for songs.

CLASSICS 

CLASSICS, a.k.a. Compensating Legacy Artists for their Songs, Service, & Important Contributions to Society, ensures that songwriters and artists receive royalties on songs recorded before 1972.

AMP 

The AMP Act, or the Allocation for Music Producers Act, creates a way for producers and engineers to receive royalties when recordings are used on satellite and online radio services.

In a statement published by Billboard, Chris Harrison, CEO of the Digital Media Association, a partner in shaping the Music Modernization Act, said:

“Much has changed in the music industry in the digital age, with online streaming driving increased revenues for creators and copyright owners alike. A modern industry requires a modern solution. The MMA finally brings our music licensing laws into the 21st Century and ensures greater transparency and efficiency for the entire music ecosystem.”

We will continue to update this blog as more information unfolds. Leave a comment below and let us know what you think of the progress being made in the music market. We want to hear from you!