Proposed Music Royalty Rates for 2028-2032: What You Need to Know

You might care about this because the Copyright Royalty Board (CRB) has announced a proposed partial settlement regarding royalty rates for making and distributing musical recordings. This notice discusses the rates and terms that would apply from January 1, 2028, to December 31, 2032. These rates are for what's called the 'mechanical' compulsory license under Section 115 of the Copyright Act. This license allows people to create and distribute phonorecords of non-dramatic musical works. This includes physical formats like CDs and vinyl, as well as digital transmissions like permanent downloads and ringtones. The CRB is required to review these rates every five years. In December 2025, they started the current process. Several interested parties, including major music publishers, songwriters, and record companies, participated. Some of these participants reached a partial settlement. They agreed that for certain categories, like physical phonorecords, permanent downloads, and ringtones, the current rates should continue. These continued rates would include adjustments for inflation. The CRB is now asking the public to comment on whether they should adopt this proposed settlement. What makes this document particularly interesting is that it represents an important step in setting the economic framework for how music creators are paid for their work. The fact that a partial settlement has been reached by various music industry groups, including some of the biggest names in publishing and recording, shows a level of agreement on these specific rates. This agreement suggests that for physical recordings and permanent digital downloads, the current royalty structure, with inflation adjustments, is largely considered fair or acceptable by these parties. It also shows the ongoing, cyclical nature of rate determinations by the Copyright Royalty Board, which balances the interests of copyright holders and those who use copyrighted works. The invitation for public comment highlights the transparency of this process, allowing other affected parties to voice their opinions before final decisions are made. This process ensures that the royalty system remains current and equitable as the music industry changes. Anyone involved in the music industry, especially those dealing with royalties and music licensing, would find this document highly relevant. This includes songwriters, composers, and music publishers, as the rates directly impact their earnings from mechanical licenses. Record labels and independent artists who produce and distribute music will also be interested. Digital music service providers, like those offering permanent downloads or ringtones, are directly affected by these rates. Legal professionals specializing in intellectual property law, particularly copyright and entertainment law, should also pay close attention. Additionally, organizations that advocate for artists, songwriters, or record companies, such as industry associations, would need to review these proposed terms carefully. Even music enthusiasts who are curious about the business side of music might find this information interesting, as it shapes how artists and rights holders are compensated.