A newly filed settlement now before the Copyright Royalty Board would hold U.S. mechanical royalty rates for physical formats and permanent downloads at their present levels all the way through 2032, still adjusting each year for inflation. Songwriters and independent publishers have only until the first week of August to file formal comments or objections, putting that upcoming deadline at the center of attention in the Phonorecords V case.
Deal Keeps Existing Rate Framework Intact
Under the agreement, the mechanical royalty system already governing physical music, permanent downloads, ringtones, and bundled music products would simply be carried forward to 2032. Rather than hammering out a new rate through litigation or resetting the numbers from scratch, the parties agreed to keep the current framework running, with yearly changes still pegged to the Consumer Price Index.
As of 2026, the statutory rate stands at 13.1 cents per track or 2.52 cents for every minute of playing time, with whichever figure is higher actually applying. This rate, which covers physical formats and permanent downloads under the existing CRB schedule, already reflects the inflation-linked adjustment that is recalculated annually.
Publishers and Major Labels Behind the Filing
Filed in the final weeks of June 2026, the settlement was submitted jointly by the National Music Publishers’ Association alongside the three major record labels: Sony Music, UMG Recordings, and Warner Music. It addresses only the non-streaming mechanical rate category, a matter distinct from the streaming royalty framework already settled in prior proceedings.
Not everyone is on board: songwriters and independent publishers object to freezing the rate as-is, and industry observers anticipate they will push back once the comment window opens. Those who filed the settlement countered that it reflects agreement among parties representing the overwhelming share of the mechanical rights market, and that it sidesteps the expense and unpredictability of a rate dispute fought out in litigation.
Phonorecords V Proceeding Sets Rates for 2028 to 2032
This case, formally titled Phonorecords V, is tasked with setting royalty rates covering 2028 through 2032. Rather than drafting a new statutory framework for that five-year window, the settlement calls for simply carrying over the structure already used during the 2023-2027 term.
This detail matters because the rate for physical products and permanent downloads had previously climbed above the 9.1-cent figure that stayed frozen for years before inflation-tied changes eventually took effect. Rather than revisiting that earlier baseline fight, this proposal simply continues the current approach and keeps the yearly cost-of-living adjustments running through the close of 2032.
Formal Objections Due Ahead of August Cutoff
According to a Federal Register notice scheduled to run on July 10, 2026, the Copyright Royalty Board will accept formal comments and objections through the opening week of August. One related account pins the actual deadline at August 10.
With the filing now open for public comment, dissenting parties have a window to lodge formal objections before the Board decides whether to sign off on the deal. Should it win approval, the arrangement would keep today’s mechanical royalty structure for physical phonorecords and permanent downloads running without triggering a fresh rate battle, preserving the annual inflation-based adjustment mechanism through 2032.
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