Phonorecords V Could Carry Physical and Download Mechanical Rates Through 2032
The Copyright Royalty Board opened a comment window on a proposed settlement that would keep the existing physical, download, ringtone, and bundle mechanical-rate structure for 2028 through 2032.
Short answer
The proposed Phonorecords V partial settlement would carry the current US mechanical-rate structure for physical formats, permanent downloads, ringtones, and bundles into 2028 through 2032, with inflation adjustments. It does not set interactive-streaming rates. Comments and objections are due August 10, 2026, before the Copyright Royalty Board decides whether to adopt it.
What happened?
The Copyright Royalty Board is running Phonorecords V, the US proceeding that sets statutory mechanical royalty rates for 2028 through 2032. On June 29, 2026, major record company participants, NMPA, NSAI, Music Artists Coalition, A2IM, and Copyright Owners filed a joint motion asking the judges to adopt a settlement for Subpart B configurations.
On July 10, 2026, the Copyright Royalty Board published that proposed settlement in the Federal Register. Comments and objections are due by August 10, 2026. Subpart B is the lane for physical phonorecords, permanent downloads, ringtones, and music bundles. The settlement does not cover the interactive streaming formulas that most artists think about when they hear mechanical royalties.
| Lane | Format | What gets paid |
|---|---|---|
| Physical records | Vinyl, CDs, tapes, and other physical phonorecords | Composition mechanical royalty on each copy |
| Permanent downloads | Paid downloads that create a permanent copy | Composition mechanical royalty on each download |
| Ringtones | A separate statutory configuration | Covered in the same Subpart B settlement lane |
What the proposed rate does
The settlement asks the judges to keep the existing rate structure and continue inflation adjustments through the next five-year period. The Federal Register notice says the 2026 rate is 13.1 cents per work or 2.52 cents per minute of playing time, whichever is larger. It also says the judges are asking whether they should adopt the proposal as statutory rates and terms for making and distributing physical or digital phonorecords.
First year covered by Phonorecords V
Last year covered by this rate period
2026 statutory rate per work, before later adjustments
2026 rate per minute or fraction, if that is larger
2026 comment and objection deadline
Do not mix the lanes
The word mechanical covers more than one use. A vinyl pressing, a paid MP3 download, and an interactive stream are all composition royalty questions, but they are not all priced by this settlement.
Why independent songwriters should care
If you write your own songs and sell vinyl, CDs, tapes, downloads, ringtones, or bundles, this rate can touch the publishing side of those sales. It is easy to think physical sales are only a master-owner issue because the money often arrives through a label, distributor, Bandcamp account, or merch store. The composition still has a mechanical royalty lane.
| Pay close attention | Lower immediate impact | |
|---|---|---|
| Catalog shape | You sell physical copies, downloads, ringtones, or bundles in the US | Your income is almost entirely interactive streaming |
| Rights position | You control or administer the composition | A publisher or administrator handles every composition claim for you |
| Action | Check who is accounting for composition mechanicals, then decide whether the comment window matters | Track it as context for future streaming-rate decisions |
The boring question is the important one: who is collecting the composition mechanical on each physical copy or download you sell?
What to do now
Check your publishing admin setup
If you press vinyl, sell CDs, or offer permanent downloads, confirm who is handling mechanical accounting for the composition. That may be your publisher, publishing administrator, label, distributor, or your own back-office process.
Watch the comment window
The window is open now. Comments and objections are due by August 10, 2026. If you think the proposal affects your catalog, talk to your publisher, administrator, lawyer, songwriter organization, or trade group before trying to file alone. Federal docket comments are public, and this is not a casual contact form.
What is still unclear?
The judges have not adopted it yet
This is a proposed settlement, not a final rule. The judges can adopt it, or decline to adopt it for non-settling participants if an objection shows it is not a reasonable basis for statutory rates or terms. It is also not the whole Phonorecords V story. Streaming mechanical rates and other configurations can still move separately.
Sources
- Federal Register: Determination of Rates and Terms for Making and Distributing Phonorecords (Phonorecords V)
- Copyright Royalty Board: Joint Motion to Adopt Settlement of Statutory Royalty Rates and Terms for Subpart B Configurations
- Copyright Royalty Board: Case details for Phonorecords V
- Music Business Worldwide: US Copyright Royalty Board proposes extending physical and download mechanical rates through 2032
Frequently asked questions
What is Phonorecords V?
Phonorecords V is the US Copyright Royalty Board proceeding that will set statutory mechanical royalty rates and terms for 2028 through 2032.
Which music formats are covered by this settlement?
The partial settlement covers physical phonorecords such as vinyl, CDs, and tapes, plus permanent digital downloads, ringtones, and music bundles.
Does the Phonorecords V settlement set streaming mechanical rates?
No. This partial settlement concerns Subpart B configurations. Interactive-streaming mechanical rates are handled separately in the broader Phonorecords V proceeding.
When is the Phonorecords V comment deadline?
Comments and objections on the proposed partial settlement are due August 10, 2026. The Copyright Royalty Board will decide whether the settlement provides a reasonable basis for statutory terms and rates.
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