delete PART 390—AMOUNTS OF AND TERMS FOR ADMINISTRATIVE ASSESSMENTS TO FUND MECHANICAL LICENSING COLLECTIVE
Regulation establishes administrative assessments and fee allocations for the Mechanical Licensing Collective (MLC), a government-created entity under the Music Modernization Act. Sets annual assessment amounts ($32.9M for 2023, $39.05M for 2024) with inflation-adjusted increases, defines minimum fees for licensee categories based on usage scale ($2,500-$60,000), and describes quarterly allocation formulas distributing 50% of assessments to all allocated licensees based on sound recording usage and 50% to threshold licensees (≥7.5% share). Requires quarterly payments, defines recoupment mechanisms, and establishes reporting requirements.
Imposes a $40M+ annual tax and government-licensed monopoly that replaces voluntary music licensing with bureaucratic allocation, raising consumer costs, burdening small businesses, and distorting market competition through compulsory regulations that eliminate freedom of contract.