The Copyright Royalty Board has officially opened a public comment period for the proposed Phonorecords V “Subpart B” settlement, setting a critical deadline of August 10, 2026, for opposing parties to file objections that could reshape mechanical royalty rates for physical records and permanent downloads from 2028 through 2032. This development directly impacts labels, publishers, and radio programmers who rely on statutory licensing frameworks, as the settlement currently proposes maintaining existing Phonorecords IV rates with only inflation adjustments rather than a significant rate hike.
Major Coalition Secures Inflation-Only Deal
The proposed agreement was reached in late June between a coalition of major industry players, including the major labels, the American Association of Independent Music (A2IM), the National Music Publishers’ Association (NMPA), the Nashville Songwriters Association International, and the Music Artists Coalition. These entities agreed to leave the physical and permanent download statutory rates from the previous Phonorecords IV era in place, excluding them from the aggressive rate increases seen in other parts of the proceeding. The settlement specifically covers Subpart B configurations for the section 115 statutory license during the five-year period beginning January 1, 2028, and ending December 31, 2032.
Key Songwriters and Publishers File Objection
Despite the coalition’s agreement, the Songwriters Guild of America, Word Collections, Eight Mile Style (Eminem’s publisher), and copyright-reform activist George Johnson have formally opted out of the settlement. These non-participants are preparing to file an objection seeking a noticeably larger rate hike, arguing that a modest inflation-based bump fails to address the evolving value of mechanical rights. Chief Copyright Royalty Judge Trevor Jefferson confirmed in a Federal Register notice that all comments and objections must be submitted no later than August 10, 2026. While non-participants bound by the final rates can technically comment, only the listed participants have the legal standing to both comment and formally object to the settlement’s adoption.
GMR Withdraws and Powell Dismissed from Proceeding
The rate-setting process faces additional complications following the withdrawal of Irving Azoff’s Global Music Rights (GMR) from the proceedings last week, though there is no public consensus on the reasons behind this exit. Separately, the CRB judges dismissed individual David Powell from the case earlier in 2026 after determining he failed to articulate a statement of significant interest and submitted a largely incomprehensible follow-up filing. The relevant opposition docket remains empty as of this week, with the industry now awaiting the formal filing of objections that could force the judges to revisit the proposed terms.
For editorial consideration and industry coverage inquiries, contact Radio Facts.
