Two industries usually at odds over paying royalties for music streamed online are both endorsing legislation seeking to "modernize" the music licensing system in the U.S.

The Music Modernization Act, introduced in the U.S. Senate on Wednesday, would create a single licensing entity that administers mechanical reproduction rights for all digital uses of musical compositions. It also would revamp the system for settling disputes about royalty rates. A similar bill has been introduced in the House of Representatives.

A coalition of music industry associations—including the National Music Publishers' Association and American Society of Composers—has endorsed the Senate bill. Also supporting the legislation is the Internet Association, which includes the digital music services Pandora and Spotify among its members.

"With IA's support, the MMA now has the backing of the entire music community," IA CEO Michael Beckerman said. "This bill builds on the internet innovations driving growth in the music industry to modernize music licensing laws."

Songwriters and music publishers have clashed with digital music services in the past over royalties for songs. The Senate bill would ensure songwriters are paid when digital music services use their music, the music industry coalition said. It also would improve transparency, provides for better royalty rates and gives songwriters increased involvement in how mechanical rights are licensed.

"The MMA is the best hope for songwriters to achieve fair royalties and payments in the digital age," NMPA CEO David Israelite said.

Sens. Orrin Hatch (R-Utah), Lamar Alexander (R-Tenn.) and Sheldon Whitehouse (D-R.I.) are sponsoring the bill.

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