My EFF colleague Ren Bucholz has created a picture that easily beats a thousand words for explaining how a voluntary collective licensing system such as the one we propose might work. The best part is that it's meant to serve as a virtual whiteboard of sorts--courtesy of a Creative Commons license, you can feel free to wipe away bit and pieces, add others, and repost at will. Or as Wendy puts it, "Don't think sampling will work? Add a few 'bugs' to the picture.
Like hardware levies? Add them in. Then, please share what you rip-mix-burn."

Very, very cool. Thanks, Ren.