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US Copyright Royalty Board proposes extending physical and download mechanical rates through 2032
The US Copyright Royalty Board has published a proposed settlement to keep the current US statutory mechanical royalty framework for physical music products, permanent downloads, ringtones and music bundles in place from 2028 to 2032, with only inflation-linked increases. This matters because these rates determine what songwriters and publishers are paid when songs are reproduced and distributed in formats such as vinyl and downloads, and they influence how revenue is shared across the music industry. The Board is inviting comments and objections before deciding whether to adopt the deal.
The proposal was filed on 29 June by Sony Music, Universal Music Group, Warner Music Group, A2IM, the NMPA, NSAI and the Music Artists Coalition, and would extend the structure adopted for 2023-2027. The 2026 rate is 13.1 cents per track, or 2.52 cents per minute of playing time, whichever is higher, and it rises each year with the Consumer Price Index; before 2022, the rate had been frozen at 9.1 cents since 2006, a position the Board later rejected as unreasonable given inflation. Not all participants support the new settlement, with the Songwriters Guild of America, Word Collections and songwriter George Johnson not signing it, while a separate dispute over participation ended with Global Music Rights withdrawing after streaming services challenged its role in the case.
In short
- US mechanical royalty rates may stay largely unchanged until 2032
- Only inflation-linked increases are proposed
- Some songwriter groups could still object by 10 August
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Proponents argue that linking mechanical rates to inflation provides equitable, predictable compensation that protects songwriter and publisher income from being diminished by rising costs. They note that the current rate already represents a substantial increase from the 9.1-cent freeze held since 2006, and emphasise that this broad settlement—signed by major labels, independent distributors, publishers and artist representatives including the Nashville Songwriters Association International—provides the industry with essential long-term stability.
The case against
Opponents contend that inflation-only adjustments fail to recognise that mechanical licensing has become far more strategically important and profitable since 2022, particularly in the streaming-dominated landscape. They argue that songwriters lack sufficient negotiating power against major labels and should receive rate increases reflecting the enhanced value they create, a position supported by the Songwriters Guild of America and other signatories who declined to endorse the deal, citing concerns about fair compensation.
Explained simply
Whenever a song is recorded on vinyl, sold as a download, or made into a ringtone, the songwriter and music publisher must receive a payment called a mechanical royalty. The US Copyright Royalty Board sets these rates, which currently stand at approximately 13 cents per track. These payments matter because they represent a major source of income for songwriters and shape how revenue is divided across the music industry.
The mechanical royalty rate remained unchanged at 9 cents per track from 2006 to 2022, during which time inflation significantly eroded the value of these payments. The Copyright Royalty Board eventually decided this frozen rate was unfair and adjusted it upward, with rates now rising each year to match inflation. This change reflected concerns that songwriters were being inadequately compensated.
The Copyright Royalty Board brings together various stakeholders who have a stake in these rates. Songwriters and publishers depend on mechanical royalties for income, whilst record labels and streaming services must account for them as costs. The Board must consider all these interests when setting the official rates.
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