Physical and Download Mechanical Rates Could Remain Unchanged Through 2032

The US Copyright Royalty Board (CRB) has published a proposed settlement that would extend the existing mechanical royalty rate structure for physical music, permanent downloads, ringtones, and music bundles for the 2028-2032 rate period, with annual inflation adjustments.

Backstory:

• Every five years the CRB sets the statutory mechanical rate under Section 115 of the US Copyright Act, determining the royalty owed whenever a song is reproduced and distributed, from a vinyl pressing to a download.

• Phonorecords V is the latest installment in that cycle.

The proposal:

• The proposed settlement was filed on June 29 by Sony Music Entertainment, UMG Recordings, and Warner Music Group, along with the American Association of Independent Music (A2IM), the National Music Publishers’ Association (NMPA), the Nashville Songwriters Association International (NSAI), and the Music Artists Coalition.

• It recommends extending the current statutory rate – 13.1 cents per track, or 2.52 cents per minute of playing time, whichever is larger – through 2032.

Opposing voices:

• The Songwriters Guild of America, Word Collections, and Nashville songwriter George Johnson have not signed the settlement.

• Non-signatories have until August 10 to file objections.

Streaming rates:

• The proposed settlement does not affect the interactive streaming rates paid by Spotify, Apple Music et al, which are set separately.