Ben Koller of Converge and Mutoid Man, alongside royalty expert Dan Hegarty, have launched the Heavy Music Collective. This new service, part of Word Collections, focuses on helping heavy music artists collect their rightful streaming royalties. Metallica's Black Squirrel Partners, an investor in Word Collections since 2023, is the lead investor in this new initiative. The collective aims to simplify the complex process of claiming mechanical royalties from streaming platforms worldwide, preventing funds from being returned to major music publishers.
Key Takeaways
- Ben Koller and Dan Hegarty co-founded the Heavy Music Collective.
- Metallica serves as a lead investor through Black Squirrel Partners.
- The service helps artists claim mechanical royalties from streaming services.
- It addresses issues with the Music Modernization Act and international royalty collection.
- Clients include Metallica, Baroness, Converge, The Offspring, Greta Van Fleet, and Yngwie Malmsteen.
Protecting Artists' Streaming Royalties
The Heavy Music Collective was created to address a significant challenge faced by many artists: securing mechanical royalties from music streaming. These royalties are generated whenever a musical composition is streamed on platforms such as Spotify and Apple Music. While sound recording royalties are often more straightforward, mechanical composition royalties require proactive collection by artists or their representatives.
According to Ben Koller, the current system often leads to artists losing money. He explained the situation in a recent video, highlighting the difficulties artists face in claiming what is rightfully theirs. The collective's goal is to ensure artists receive all due payments, both domestically and internationally.
Fact: Music Modernization Act
The Music Modernization Act, passed in 2018 in the United States, established the Mechanical Licensing Collective (MLC). This agency is responsible for collecting mechanical royalties from streaming services. However, artists must actively claim these funds. If unclaimed for three years, the money can be legally reallocated to major music publishers.
The Role of the Mechanical Licensing Collective
When a song is streamed, it generates two main types of royalties: one for the sound recording and another for the musical composition. The musical composition royalty is called a mechanical royalty. Streaming services like Spotify and Apple Music are required to pay these mechanical royalties to the MLC in the United States.
However, the responsibility then shifts to the artist. Artists must find this money, complete all necessary paperwork, and claim it. This process can be complicated and time-consuming, especially for independent artists or those without dedicated administrative support.
"If you don't claim that money in three years, they are legally allowed to take it all back and give it to the major music publishers. So, with the Heavy Music Collective, it's our job to find all that money that's rightfully yours and get it before they do." — Ben Koller
This statement from Koller underscores the urgency and necessity of the Heavy Music Collective's mission. The organization acts as an advocate for artists, navigating the bureaucratic hurdles to ensure funds reach their creators.
Background: Word Collections
The Heavy Music Collective operates as a division of Word Collections. Word Collections is a broader organization focused on royalty collection for various forms of creative works. Metallica's investment in Word Collections in 2023 demonstrates a commitment to supporting artists in managing their intellectual property and financial interests in the digital age.
Global Royalty Challenges
The issue of unclaimed royalties extends beyond the United States. Koller highlighted that artists also earn mechanical royalties when their music streams in other countries, such as England, France, Australia, and Japan. Each of these countries has its own unique organizations and processes for royalty collection.
This creates an even more complex landscape for artists. Without a specialized service, tracking and claiming these international royalties becomes nearly impossible for many. If these international funds are not claimed, they too can be distributed to major music publishers, further disadvantaging independent artists or smaller labels.
- United States: Monitored by the Mechanical Licensing Collective (MLC).
- United Kingdom: Different collecting societies manage mechanical royalties.
- France: Specific organizations handle composition rights.
- Australia: Local bodies ensure artists are compensated.
- Japan: Distinct agencies oversee music rights and payments.
The Heavy Music Collective aims to simplify this global complexity. By working with a single entity, artists can potentially streamline their royalty collection efforts across multiple territories, maximizing their earnings and reducing administrative burden.
Current Roster and Future Plans
The Heavy Music Collective has already attracted a notable list of clients. This includes its lead investor, Metallica, demonstrating the band's trust in the service. Other prominent artists and bands have also joined, such as Baroness, Koller's own band Converge, The Offspring, Greta Van Fleet, and Yngwie Malmsteen.
This diverse roster shows the collective's appeal across various subgenres within heavy music. From legendary acts to contemporary bands, the need for effective royalty collection is universal. The collective provides a vital service, allowing artists to focus more on their creative work and less on financial administration.
The collective's mission is to demystify the publishing side of streaming. Many artists understand the performance side of royalties but find the composition side confusing. By offering clear guidance and active support, the Heavy Music Collective helps artists understand and benefit from their intellectual property.
Artists interested in learning more or applying for services can visit heavymusiccollective.com. The website provides additional information on how the collective operates and how artists can secure their unclaimed royalties.
The launch of this service represents a significant step towards greater financial transparency and fairness for artists in the heavy music genre. It highlights ongoing efforts within the music industry to adapt to streaming models and ensure creators are properly compensated for their work.