Mechanical Licenses and The Willing Buyer/Willing Seller Standard: Establishing Royalty Rates in a Vacuum of Knowledge

Authors

• Natalie Linn, Benjamin N. Cardozo School of Law

Abstract

The Music Modernization Act (MMA) introduced a significant shift in determining mechanical royalty rates by replacing the 801(b)(1) standard with the willing buyer-willing seller standard. This change, while aiming to establish fair market value, presents challenges for the Copyright Royalty Board (CRB) due to the lack of a comparable market and the influence of statutory licensing. The transition is expected to increase royalty rates, impacting various stakeholders, including copyright owners, streaming services, and consumers, and may lead to heightened disputes and uncertainty in the industry.

Disciplines

Entertainment, Arts, and Sports Law | Intellectual Property Law | Law

Recommended Citation

Natalie Linn, Mechanical Licenses and The Willing Buyer/Willing Seller Standard: Establishing Royalty Rates in a Vacuum of Knowledge, 40 Cardozo Arts & Ent. L.J. 313 (2022).
Available at: https://larc.cardozo.yu.edu/cardozoaelj/vol40/iss1/11