Phonorecords V Could Carry Physical and Download Mechanical Rates Through 2032
A proposed Copyright Royalty Board settlement would keep the existing physical, download, and ringtone mechanical-rate structure for 2028 through 2032, with inflation adjustments. It is not the streaming-rate fight, but songwriters should know which lane is being set.
Short answer
On June 29, 2026, major record company participants, NMPA, NSAI, Music Artists Coalition, A2IM, and Copyright Owners filed a joint motion asking the Copyright Royalty Board to adopt a settlement for Phonorecords V Subpart B configurations. The settlement covers physical phonorecords, permanent downloads, and ringtones for 2028 through 2032, and would continue the current rate structure with inflation adjustments. The 2026 statutory rate is 13.1 cents per work or 2.52 cents per minute, whichever is larger. This is separate from interactive streaming mechanical rates, but it matters for songwriters who sell vinyl, CDs, downloads, or other permanent formats.
This is a songwriter royalty story, but it is the physical and download lane. The proposed settlement would carry the current mechanical-rate structure into 2028 through 2032 with inflation adjustments. It does not settle the interactive streaming mechanical rate fight.
Key takeaways
- On June 29, 2026, several music-industry participants filed a joint motion asking the Copyright Royalty Board to adopt a Phonorecords V settlement for physical records, permanent downloads, and ringtones.
- The settlement would keep the current Phonorecords IV Subpart B rate structure for 2028 through 2032, with continued inflation adjustments.
- For 2026, the physical and permanent download mechanical rate is 13.1 cents per work or 2.52 cents per minute, whichever is larger.
- This is separate from interactive streaming mechanical royalties. If you mostly earn through Spotify and Apple Music streams, do not read this as the whole US mechanical-rate decision.
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.
Subpart B is the lane for physical phonorecords, permanent downloads, and ringtones. 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. Digital Music News reported the 2026 rate as 13.1 cents per work or 2.52 cents per minute of playing time, whichever is larger. The Copyright Royalty Board case docket shows the joint motion is filed and the proceeding is still open.
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
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, or ringtones, 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, or ringtones 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 on physical and download sales | 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 settlement asks the Copyright Royalty Board to adopt the rates. If the judges publish it for comment or objection, songwriter groups, publishers, and affected parties may respond. Independent songwriters should watch the CRB docket or their publishing organizations for that window.
What is still unclear?
The judges have not adopted it yet
This is a filed settlement, not a final rule. It is also not the whole Phonorecords V story. Streaming mechanical rates and other configurations can still move separately. The practical move is to keep your publishing metadata clean and follow the docket before treating any 2028 through 2032 rate as final.
Sources
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