The legislation aims to revamp existing laws so musicians and labels are better compensated by streaming platforms.
The act, which passed unanimously through the House and Senate, aims to update antiquated US copyright and licensing laws for the streaming era.
Specifically, its goal is to simplify the process of licensing music so that rights holders are more fairly compensated when their music is streamed online. It will iron out the most complicated part of the process—figuring out who the rights holders are—by creating a single licensing database called the Mechanical Licensing Collective. The MLC will ensure that payouts end up with the correct artists and labels.
It also includes a piece of legislation called the Allocation for Music Producers Act, which specifically aims to get producers and engineers better royalty payouts from satellite and online radio (it's the first time producers have been mentioned in US copyright law).
"You like this legislation or do you hate it?" Trump reportedly asked his invited guest Kid Rock during the signing ceremony this afternoon. "I like it," replied Kid Rock.