Fees for Late Royalty Payments under the Music Modernization Act’s Blanket Mechanical License

The Copyright Office has issued a notification of inquiry seeking comments on questions regarding when fees for late royalty payments should be assessed in connection with reporting by digital music providers under the Music Modernization Act’s blanket mechanical license. Under section 115, the Copyright Royalty Judges (CRJs) are responsible for setting the blanket license’s rates and terms, which may include fees for late royalty payments. The Office is responsible for other blanket license regulations, including those governing digital music providers’ reporting and payment requirements. The notification seeks comments concerning the interplay between the CRJs’ late fee regulations and the Office’s reporting and payment rules.

Interested parties disagree on this issue and have asked the Office to provide guidance.

Initial written comments were due on April 10th, 2023. Written reply comments were due May 9th, 2023.