Blab Music
Major Labels, Publishers File Phonorecords V Settlement Proposal; Indie Groups Prepare Objections, GMR Excluded
In a move that could shape mechanical royalty rates for five years, a coalition of major record labels, the National Music Publishers’ Association (NMPA), the Nashville Songwriters Association International (NSAI), the Music Artists Coalition, and the American Association of Independent Music (A2IM) filed a voluntary settlement proposal with the Copyright Royalty Board (CRB) on July 1 2026. The proposal targets U.S. mechanical rates for physical formats, ringtones, and permanent downloads through 2028‑2032.
The document preserves the existing Phonorecords IV framework, limiting changes to annual inflation adjustments tied to the Consumer Price Index. Under the terms, rates for physical phonorecords, permanent downloads, and ringtones would remain unchanged from current levels, with only cost‑of‑living adjustments applied each year. Participants listed in the filing include the major labels, NMPA, NSAI, Music Artists Coalition, A2IM, and the major digital‑streaming platforms Apple, Spotify, Pandora, Google, and Amazon.
Not all stakeholders are on board. Independent advocates and creators—such as the Songwriters Guild of America, Jeff Price’s Word Collections, Eight Mile Style (Eminem’s publisher), and copyright activist George Johnson—refused to join the settlement. They announced plans to file formal objections in July 2026, seeking a statutory mechanical rate of 15.65 cents per track instead of the modest inflation‑adjusted increase proposed. Johnson noted that the settlement was never sent to them for review.
Another notable omission is Global Music Rights, LLC (GMR), the performance‑royalty arm of Irving Azoff. According to participant lists reviewed by Digital Music News, GMR was “withdrawn” from the process. One source explained that GMR’s focus on performance royalties, not mechanical licensing, made it ineligible for the settlement. Other informants suggested that the NMPA and streaming platforms filed a motion to exclude GMR, citing concerns that the firm’s negotiating strength could push rates higher. GMR reportedly received assurances that performance royalties would not be affected during the proceedings; after a motion denied its petition, the firm opted to withdraw.
The proposal’s rapid development has drawn skepticism. In 2022, the CRB had rejected a similar physical‑rate freeze on the grounds of vertical integration between major labels and publishers. Critics argue that the rushed Phonorecords IV agreements created loopholes that allowed streaming services to bundle mechanical royalties, effectively reducing overall payouts to songwriters. The new settlement could reinforce those dynamics for the next five years.
For songwriters and publishers, the outcome of the Phonorecords V determination will shape mechanical royalty income across physical releases, digital downloads, and ringtones. The independent groups’ planned objections could delay the CRB’s final decision or force a revision of the rates. Meanwhile, streaming platforms—accounting for more than 98 % of U.S. streaming subscribers—are preparing for a separate discussion on streaming‑rate mechanics.
At present, the settlement proposal has been filed with the CRB, GMR has been excluded, and independent stakeholders are preparing objections. No final decision has been issued, and the CRB’s next hearing is scheduled for later this year. The industry will be watching closely to see whether the proposed rates are adopted, modified, or rejected, and how the outcome will influence mechanical licensing for the next five years.
The document preserves the existing Phonorecords IV framework, limiting changes to annual inflation adjustments tied to the Consumer Price Index. Under the terms, rates for physical phonorecords, permanent downloads, and ringtones would remain unchanged from current levels, with only cost‑of‑living adjustments applied each year. Participants listed in the filing include the major labels, NMPA, NSAI, Music Artists Coalition, A2IM, and the major digital‑streaming platforms Apple, Spotify, Pandora, Google, and Amazon.
Not all stakeholders are on board. Independent advocates and creators—such as the Songwriters Guild of America, Jeff Price’s Word Collections, Eight Mile Style (Eminem’s publisher), and copyright activist George Johnson—refused to join the settlement. They announced plans to file formal objections in July 2026, seeking a statutory mechanical rate of 15.65 cents per track instead of the modest inflation‑adjusted increase proposed. Johnson noted that the settlement was never sent to them for review.
Another notable omission is Global Music Rights, LLC (GMR), the performance‑royalty arm of Irving Azoff. According to participant lists reviewed by Digital Music News, GMR was “withdrawn” from the process. One source explained that GMR’s focus on performance royalties, not mechanical licensing, made it ineligible for the settlement. Other informants suggested that the NMPA and streaming platforms filed a motion to exclude GMR, citing concerns that the firm’s negotiating strength could push rates higher. GMR reportedly received assurances that performance royalties would not be affected during the proceedings; after a motion denied its petition, the firm opted to withdraw.
The proposal’s rapid development has drawn skepticism. In 2022, the CRB had rejected a similar physical‑rate freeze on the grounds of vertical integration between major labels and publishers. Critics argue that the rushed Phonorecords IV agreements created loopholes that allowed streaming services to bundle mechanical royalties, effectively reducing overall payouts to songwriters. The new settlement could reinforce those dynamics for the next five years.
For songwriters and publishers, the outcome of the Phonorecords V determination will shape mechanical royalty income across physical releases, digital downloads, and ringtones. The independent groups’ planned objections could delay the CRB’s final decision or force a revision of the rates. Meanwhile, streaming platforms—accounting for more than 98 % of U.S. streaming subscribers—are preparing for a separate discussion on streaming‑rate mechanics.
At present, the settlement proposal has been filed with the CRB, GMR has been excluded, and independent stakeholders are preparing objections. No final decision has been issued, and the CRB’s next hearing is scheduled for later this year. The industry will be watching closely to see whether the proposed rates are adopted, modified, or rejected, and how the outcome will influence mechanical licensing for the next five years.
