U.S. Copyright Office Issues a Notice of Proposed Rulemaking Related to Termination Rights and the Music Modernization Act’s Statutory Mechanical Blanket License

The Copyright Office has issued a notice of proposed rulemaking regarding the applicability of the Copyright Act’s derivative works exception to termination rights in the context of the mechanical blanket license established by the Music Modernization Act (MMA). The proposed rule also addresses the Mechanical Licensing Collective’s (MLC’s) “Notice and Dispute Policy: Statutory Terminations,” which established policies related to disputes involving a statutory termination.

The Office’s proposed rule aims to clarify the appropriate payee under the blanket license to whom the MLC must distribute royalties in connection with a statutory termination.

The notice of proposed rulemaking and instructions on how to submit comments are available here. Initial written comments must be received no later than November 25, 2022, at 11:59 p.m. eastern time. Written reply comments must be received no later than December 27, 2022, at 11:59 p.m. eastern time.