Scarinci Hollenbeck, LLC, LLCScarinci Hollenbeck, LLC, LLC

Firm Insights

How the Music Modernization Act Will Reshape US Copyright Law

Author: Ronald S. Bienstock

Date: September 28, 2018

Key Contacts

Back

The Music Modernization Act of 2018 Represents the Largest Overhaul of Music Licensing in More Than Two Decades…

On September 18, 2018, the U.S. Senate unanimously passed the Music Modernization Act of 2018. The landmark bill, which has already passed the House of Representatives, represents the largest overhaul of music licensing in more than two decades.

How the Music Modernization Act Will Shape U.S. Copyright Law
Photo courtesy of Malte Wingen (Unsplash.com)

The federal copyright legislation enjoyed widespread support from across the music industry, including record labels, publishers, songwriters and artists. However, objections by Sirius XM had threatened passage until lawmakers were able to reach an 11th-hour compromise that allowed the bill to pass unanimously.

Mitch Glazier, the president of the Recording Industry Association of America (RIAA), said in a statement: “As the legendary band the Grateful Dead once said in an iconic pre-1972 song, ‘what a long strange trip it’s been.’ It’s been an epic odyssey, and we’re thrilled to almost be at our destination.”

“This is the most important piece of legislation in a generation,” Sen. Lamar Alexander (R-Tenn.) said on the Senate floor after the bill was approved. “It makes sure songwriters get paid and get paid fairly.” He added: “The Internet changed the music industry just like it has changed other industries… but copyright law didn’t keep up. Copyright laws were way out of date and hadn’t been modified since the days of the [mechanical player] piano roll.”

Significant Amendments to U.S. Copyright Law

Now totaling 185-pages, the final Senate version of Music Modernization Act completely overhauls Section 115 of the U.S. Copyright Act. In its final form, it reflects the combination of three significant pieces of legislation — the Music Modernization Act, the Compensating Legacy Artists for their Songs, Service, & Important Contributions to Society Act (CLASSICS Act), and Allocation for Music Producers Act (AMP Act). Below are several key provisions:

  • Music Modernization Act: The bill eliminates the existing Notice of Intention (NOI) process through which streaming music services obtain mechanical licenses. Under the Music Modernization Act, music services would be able to obtain a blanket license for interactive streaming or digital downloads of musical works through a newly-created Mechanical Licensing Collective (MLC). This amends the way the Copyright Royalty Board determines rates by incorporating a standard that requires the court to consider free-market conditions when determining rates. It also ensures that future performance rates hearings between performance rights organizations and licensees rotate among all U.S. Southern District Court of New York Judges, rather than being assigned to the same two judges. It also eliminates the Digital Millennium Copyright Act carve out for “pre-existing digital services” like Sirius XM and Music Choice that allows for certain additional considerations not given to any other digital service when rates are set.
  • CLASSICS Act: As initially proposed, the bill creates a public performance right for pre-1972 recordings. However, the amended version also accomplishes full federalization, so that all works will fall under the same system. The amended legislation also creates a tiered system under which pre-1972 recordings will enter the public domain. Most notably, recordings made before 1923 will lose all copyright protection after a three-year grace period. Recordings made from 1923 to 1956 will transition over the next few decades. As under existing law, recordings from 1957 onward will continue under copyright until 2067.
  • AMP Act: The bill establishes a formal process that allows record producers, sound engineers, and other creative professionals to receive direct royalty payments from Sound Exchange when recordings are used on satellite radio and online radio services. Interestingly, the provision marks the first time that producers and engineers are mentioned in U.S. copyright law. Up until now, compensation as to these sources for producers and engineers was by agreement only.

Because the Senate version contains so many amendments, the House must now reconsider the Music Modernization Act. Assuming the bill will again pass the House, it will then head to the President for his signature.  We will continue to track its process and post updates as they become available.

If you have questions, please contact us

If you have any questions or if you would like to discuss the matter further, please contact me, Ron Bienstock, at 201-806-3364.

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Scarinci Hollenbeck, LLC, LLC

Related Posts

See all
Scarinci Hollenbeck Expands NYC Real Estate and Litigation Practices ADDING four litigators post image

Scarinci Hollenbeck Expands NYC Real Estate and Litigation Practices ADDING four litigators

NYC Real Estate and Litigation Attorney Ryan O. Miller and Team Join Scarinci Hollenbeck, LLC New York City, NY – August 13, 2025 – Scarinci Hollenbeck, LLC has strengthened its Real Estate and Litigation practices with the addition of four New York City-based attorneys. Ryan Miller, who joins as a partner, is well known for […]

Author: Scarinci Hollenbeck, LLC

Link to post with title - "Scarinci Hollenbeck Expands NYC Real Estate and Litigation Practices ADDING four litigators"
What is Business Law and Why Is it Important? post image

What is Business Law and Why Is it Important?

Business law plays a critical role in nearly every aspect of running a successful enterprise, from negotiating a commercial lease to drafting employee policies to fulfilling corporate disclosure obligations. Understanding what is business law and your legal obligations can help your business run smoothly and build productive relationships with clients, business partners, regulators, and others. […]

Author: Dan Brecher

Link to post with title - "What is Business Law and Why Is it Important?"
Corporate Transactions: Best Practices for Successful Deals post image

Corporate Transactions: Best Practices for Successful Deals

Corporate transactions can have significant implications for a corporation and its stakeholders. For deals to be successful, companies must act strategically to maximize value and minimize risk. It is also important to fully understand the legal and financial ramifications of corporate transactions, both in the near and long term. Understanding Corporate Transactions The term “corporate […]

Author: Dan Brecher

Link to post with title - "Corporate Transactions: Best Practices for Successful Deals"
How to Conduct a Fair and Legal Employee Termination in 2025 post image

How to Conduct a Fair and Legal Employee Termination in 2025

Ongoing economic uncertainty is forcing many companies to make tough decisions, which includes lowering staff levels. The legal landscape on both the state and federal level also continues to evolve, especially with significant changes to the priorities of the Equal Employment Opportunity Commission (“EEOC”) under the Trump Administration. Terminating an employee is one of the […]

Author: Angela A. Turiano

Link to post with title - "How to Conduct a Fair and Legal Employee Termination in 2025"
Admin Dissolution for Annual Report: What You Need to Know post image

Admin Dissolution for Annual Report: What You Need to Know

While filing annual reports may seem like a nuisance, failing to do so can have significant ramifications. These include fines, reputational harm, and interruption of your business operations. In basic terms, “admin dissolution for annual report” means that a company is dissolved by the government. This happens because it failed to submit its annual report […]

Author: Dan Brecher

Link to post with title - "Admin Dissolution for Annual Report: What You Need to Know"
What Is Antitrust Litigation Law? post image

What Is Antitrust Litigation Law?

Antitrust laws are designed to ensure that businesses compete fairly. There are three federal antitrust laws that businesses must navigate. These include the Sherman Act, the Federal Trade Commission Act, and the Clayton Act. States also have their own antitrust regimes. These may vary from federal regulations. Understanding antitrust litigation helps businesses navigate these complex […]

Author: Robert E. Levy

Link to post with title - "What Is Antitrust Litigation Law?"

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Sign up to get the latest from our attorneys!

Explore What Matters Most to You.

Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.

Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.

Let`s get in touch!

* The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form. By providing a telephone number and submitting this form you are consenting to be contacted by SMS text message. Message & data rates may apply. You can reply STOP to opt-out of further messaging.

Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!