The U.S. Copyright Office issued a final rule under the Music Modernization Act (MMA) to address how digital music providers should handle and report accrued royalties for unmatched musical works. This rule aims to clarify the processes for transferring royalties to the Mechanical Licensing Collective (MLC) while ensuring accurate payments to songwriters and copyright owners. It addresses the necessity of estimates and adjustments to royalties due to unknown factors, like the pending final determination of royalty rates. The rule also considers previous private agreements to prevent double payments while ensuring that unmatched royalties are correctly transferred and accounted for.
Simple Explanation
Imagine a big music party where musicians get paid based on how many times people dance to their tunes. The new rule helps to make sure all the musicians, even the ones whose songs haven't been matched to the right payments yet, eventually get their fair share of the party money.