MAC Joins the Phonorecords V Subpart B Settlement

The Music Artists Coalition has joined the National Music Publishers' Association (NMPA), the Nashville Songwriters Association International (NSAI), American Association of Independent Music (A2IM), major record companies, and copyright owner representatives in a joint motion asking the Copyright Royalty Board to adopt a negotiated settlement for the Phonorecords V proceeding. We believe this settlement represents a fair and reasonable outcome for songwriters, publishers, and rights holders.

Phonorecords V is the proceeding that sets the statutory mechanical royalty rates that will apply from 2028 through 2032. Importantly, this settlement addresses what the Copyright Royalty Board calls "Subpart B Configurations" — physical phonorecords (vinyl, CDs, and similar formats), permanent digital downloads, and ringtones. It does not address interactive streaming mechanical rates, which are governed under separate proceedings. For songwriters and publishers who rely on income from record sales and downloads, however, this is one of the most consequential rate-setting processes in the statutory licensing system.

The settlement carries forward the current Phonorecords IV rate structure, meaning the continuation of the built-in annual inflation adjustments for the new five-year term. That means more continuity, stability, and predictability for a part of the market that, for many years, saw neither.

A Brief History of The Subpart B Rates

For decades, the physical and download mechanical rate barely moved. From 2006 through 2022, the statutory rate remained frozen at 9.1 cents per work (or 1.75 cents per minute of playing time) across three successive rate-setting periods. In early 2022, several participants proposed extending that same 9.1-cent rate for the Phonorecords IV term. The Copyright Royalty Judges rejected the proposal, with concerns that the rate had gone stagnant for too long given rising costs across the music industry.

In response, the parties returned with a new negotiated settlement: a 12-cent rate, a 32 percent increase, coupled for the first time with automatic annual cost-of-living adjustments (“COLA”) for the remainder of the term. The Copyright Royalty Board formally adopted that settlement in December 2022, and it has been in effect since January 2023. Thanks to the built-in adjustments, the rate has continued to climb each year with inflation, reaching 13.1 cents per work (or 2.52 cents per minute) for 2026.

The Phonorecords IV settlement is a testament to the unwavering dedication of copyright advocates such as George Johnson, the Artists Rights Alliance (ARA), and Songwriters of North America (SONA). These individuals and organizations fought to unfreeze the rates and secured the initial implementation of COLA.

Why the COLA Provision Matters

The introduction of a cost-of-living adjustment in the Phonorecords IV settlement was a turning point. For the first time, the physical and download mechanical rate was no longer a fixed number that would sit untouched for years while costs rose around it. That single change protected the long-term value of these royalties.

MAC analyzed the settlement proposal and ultimately decided to join, preserving the COLA structure. We believe a COLA should be a part of all statutory rates. "A cost-of-living adjustment baked into the rate is real money in songwriters' pockets," said Ron Gubitz, Executive Director of MAC. “This is a reasonable settlement that protects songwriters from watching inflation chip away at what they're owed. The COLA had to be in there. We'll keep fighting for songwriters through this process, and we know there's still a long way to go.”

Extending the COLA mechanism through 2032 tells us that the settling parties now recognize automatic inflation adjustment as a baseline expectation rather than a one-off concession. That is a meaningful and welcome precedent. We believe it should inform every future statutory rate proceeding, including those governing interactive streaming mechanical and performance royalties.

The Comment Period

On July 10, 2026, the Copyright Royalty Board published the proposed Phonorecords V settlement for public comment in the Federal Register, under Docket No. 25-CRB-0013-PR (2028-2032). Comments and objections were due no later than, August 10, 2026.

Not every participant in the proceeding has joined the settlement. Some have declined to sign on and have published comments in objection to the settlement. You can read more about their disputes and arguments here: CRB - Phonorecords V - Case Log.

MAC supports the Phonorecords V settlement and encourages the Copyright Royalty Board to adopt it. We believe the settlement, particularly its continuation of the COLA mechanism, represents a reasonable compromise. A settlement that keeps pace with inflation, arrived at by consensus rather than years of costly litigation, is good for the entire music community.