Groups Battle To Create Music Collective for Streaming Royalties

Music industry groups that banded together to help overhaul U.S. music copyright law are now working together on a new system to distribute billions of dollars in digital streaming revenue.

The coalition of groups plans to propose a vision for the collective envisioned under last year’s Music Modernization Act to ensure that royalties from music streamers such as Spotify flow to copyright holders. If approved by the U.S. Copyright Office, the proposed Mechanical Licensing Collective would be the linchpin of the new law.

The law mandated creation of the collective to cope with a digital streaming subscription model that has ...