Phonorecords V: The 2028 Mechanical Rate Fight

Last Updated: July 2026

Phonorecords V is the U.S. government proceeding that sets the statutory mechanical royalty rates songwriters earn from 2028 through 2032. In July 2026, it split into two tracks: a proposed settlement (filed June 29, 2026) would lock in the rates for physical records, downloads, ringtones, and music bundles with annual inflation bumps — but the far bigger fight over the interactive streaming mechanical rate remains unsettled and contested (Copyright Royalty Board, case 25-CRB-0013-PR). If you write songs, the streaming half of this proceeding will shape your paycheck for five years. Public comments and objections on the settled portion are due August 10, 2026 (Federal Register, July 10, 2026). This guide breaks down what Phonorecords V is, what's already decided, what's still being fought over, and what indie songwriters should actually do about it.

What is Phonorecords V and why does it matter?

Phonorecords V is the fifth in a series of rate proceedings run by the Copyright Royalty Board (CRB), a panel of three federal judges that sets the compulsory ("statutory") mechanical license rates under Section 115 of the U.S. Copyright Act. Every reproduction of a musical composition — a Spotify stream, an Apple Music download, a pressed vinyl record, a CD — triggers a mechanical royalty owed to the songwriter and publisher. Phonorecords V sets those rates for the 2028–2032 period.

The proceeding formally commenced in January 2026 (Digital Music News, January 7, 2026). It carries the case number 25-CRB-0013-PR (2028–2032) on the CRB's eCRB docket. The outcome doesn't just affect major publishers — it sets the floor for every independent songwriter in the country, because the statutory rate governs what The MLC collects and distributes on your behalf.

Here's why this is not abstract: mechanical royalties are one of the two largest streams of songwriter income (the other being performance royalties). A fraction of a percent shift in the streaming formula moves hundreds of millions of dollars across the songwriter economy. If you've ever run a catalog audit with RoyaltyCoPilot.ai and wondered why your mechanical line looks thin, the rate structure set by proceedings like this one is a big part of the answer.

What did the Phonorecords V settlement actually decide?

On June 29, 2026, a coalition of publishers, songwriter groups, and record companies filed a joint motion asking the CRB to adopt a settlement for the "Subpart B" configurations — physical phonorecords, permanent downloads, ringtones, and music bundles (Velveteen, June 2026). The movants included the National Music Publishers' Association (NMPA), the Nashville Songwriters Association International (NSAI), the Music Artists Coalition (MAC), and the three major labels (Sony, UMG, Warner) plus the indie label association A2IM.

The proposed deal keeps the existing physical and download rate structure through 2032, with annual cost-of-living adjustments tied to inflation. It does not raise the base rate — it continues the framework set in the prior term.

For 2026, the physical and permanent download mechanical rate is 13.1 cents per work, or 2.52 cents per minute of playing time, whichever is larger (Digital Music News, December 2025). That's up from 12.7 cents in 2025. The rate climbs each year because the Phonorecords IV settlement introduced a cumulative Consumer Price Index (CPI-U) adjustment, calculated from a November 2022 base rate of 12 cents. Phonorecords V would carry that same escalator forward.

The comment and objection window on this settled portion closes August 10, 2026 (Federal Register, July 10, 2026). If no serious objections land, the CRB judges will likely adopt it.

What is still being fought over in Phonorecords V?

The streaming mechanical rate — the money most songwriters actually care about — is not settled. The June 2026 deal deliberately carved out interactive streaming (the "Subpart C" formula), which means the biggest revenue question for the 2028–2032 term is still open and headed toward a contested rate determination.

To understand the stakes, look at where the current term landed. Under Phonorecords IV (2023–2027), publishers and streamers agreed to a headline rate that escalates from 15.1% of a service's U.S. revenue in 2023 to 15.35% by 2027 (Music Business Worldwide, 2023). But that headline percentage is not what hits your account. Performance royalties paid to your PRO (ASCAP, BMI, SESAC, or GMR) are deducted before the mechanical share is calculated, so the real streaming mechanical payout is smaller than the headline suggests.

Two flashpoints are shaping the Phono V streaming fight:

1. The bundling problem. When Spotify reclassified its Premium tier as a "bundle" (audio plus audiobooks) in 2024, it lowered the royalty base and cut songwriter mechanical payments by an estimated $150 million per year (NMPA, 2024). The NMPA argues income from video and other rights should be paid on top of interactive streaming mechanicals, not used to offset them. Expect this to be front and center in the rate determination.
2. GMR's participation. In July 2026, reporting indicated that Spotify, Apple, Amazon, Pandora, and Google coordinated to remove Global Music Rights (GMR) from the Phonorecords V process (Digital Music News, July 10, 2026) — a procedural skirmish that hints at how contentious the streaming side will be.

For an indie songwriter, the plain-English takeaway is this: the boring part (physical and downloads) got settled quietly, and the part that determines most of your streaming income is still a live battle.

How does Phonorecords V affect independent songwriters specifically?

If you're an independent songwriter, producer, or small publisher, three things follow directly from this proceeding, whether or not you ever file a comment.

First, your streaming mechanicals for 2028–2032 are being decided right now, without you in the room. The rate is negotiated by large trade groups and major labels. You don't get a personal seat, but the outcome sets what The MLC pays into your account for every U.S. stream of your compositions.

Second, the physical/download escalator protects your vinyl and CD income. If you sell physical product, the CPI-linked rate means your per-unit mechanical keeps pace with inflation — 13.1 cents in 2026, higher in following years. This matters more than most indie artists realize, because a controlled-composition clause in some deals can cap what you actually collect below the statutory rate.

Third, none of this money reaches you if your metadata is wrong. The single biggest reason indie songwriters lose mechanical royalties isn't the rate — it's unmatched or misregistered works sitting in The MLC's unclaimed pool. A rate increase on a song The MLC can't match to you is worth exactly zero. This is the gap RoyaltyCoPilot.ai was built to close: identifying compositions in your catalog that aren't registered, matched, or claimed across The MLC, SoundExchange, and your PRO.

What should you do before the August 10 deadline?

You don't need to be a lawyer to respond to this proceeding, and you don't need to file anything at all to benefit. But here's a practical checklist for indie creators in 2026:

1. Confirm your works are registered with The MLC. Every composition you've released to streaming needs to be registered so it can be matched to incoming mechanical royalties. Unregistered works accumulate in the black-box pool.
2. Verify your ISWC and IPI numbers are attached to each work. These identifiers are how The MLC matches royalties to the right writer. Missing codes are a top cause of unmatched royalties.
3. Check your publisher/administrator splits. If a co-writer or producer split is wrong or missing, your mechanical share gets held or misrouted.
4. Run a full catalog audit. Use RoyaltyCoPilot.ai (or comparable tooling) to cross-reference your catalog against The MLC, SoundExchange, and your PRO to surface unclaimed and unmatched money before the next distribution cycle.
5. Follow the docket if you want to. The eCRB docket for case 25-CRB-0013-PR is public, and comments on the settled physical/download portion are open through August 10, 2026 (Federal Register, July 10, 2026).

The through-line: the rate proceeding sets the ceiling on what you can earn, but your registration and metadata hygiene determine what you actually collect.

Phonorecords IV vs. Phonorecords V: what changed?

The headline story is continuity on physical and disruption on streaming. The physical/download framework has essentially become the stable, predictable part of the mechanical world, while streaming — where the real volume lives — remains a recurring battleground every five years.

The bottom line for indie creators

Phonorecords V won't change what you earn tomorrow, but it will define your streaming mechanical income from 2028 through 2032, and the streaming portion is still being decided. The physical and download rates are on track to be locked in with inflation protection, which is quietly good news for anyone selling vinyl or CDs. The streaming rate — dragged down by bundling and fought over by every major DSP and publisher — is the part worth watching.

For an independent songwriter, the most productive response isn't to refresh the CRB docket every morning. It's to make sure the money the proceeding protects can actually find you. Registration, metadata, and split accuracy are the difference between a rate increase that pays you and one that pads the black box. Tools like RoyaltyCoPilot.ai exist precisely to make sure your catalog is claim-ready before the next rate takes effect.

Frequently asked questions

What is Phonorecords V? Phonorecords V is the Copyright Royalty Board proceeding (case 25-CRB-0013-PR) that sets U.S. statutory mechanical royalty rates for 2028 through 2032, covering physical records, downloads, ringtones, music bundles, and interactive streaming.

Has Phonorecords V been decided yet? Partially. A settlement filed June 29, 2026 would set the physical, download, ringtone, and bundle rates, with comments due August 10, 2026. The interactive streaming mechanical rate — the biggest piece — is not settled and is still being litigated.

What is the 2026 mechanical royalty rate for physical and downloads? 13.1 cents per work, or 2.52 cents per minute of playing time, whichever is larger, up from 12.7 cents in 2025. The rate rises annually under a CPI-U cost-of-living adjustment.

What is the streaming mechanical rate right now? Under Phonorecords IV, the headline rate escalates to 15.35% of a service's U.S. revenue by 2027. Performance royalties paid to your PRO are deducted before the mechanical share is calculated, so your actual payout is lower than the headline.

Why is bundling a problem for songwriters? When Spotify reclassified Premium as an audio-plus-audiobooks bundle in 2024, it lowered the royalty base and cut songwriter mechanicals by an estimated $150 million per year (NMPA). How bundles are treated is a central fight in the Phonorecords V streaming determination.

Do I need to do anything before August 10, 2026? You're not required to file anything. The most valuable action is confirming your works are registered and correctly matched with The MLC so any rate you're owed actually reaches you. Running a catalog audit with RoyaltyCoPilot.ai is the fastest way to spot gaps.

How does this connect to my MLC royalties? The MLC administers and distributes the statutory streaming mechanical royalties set by these proceedings. The CRB sets the rate; The MLC pays it out — but only for works it can match to you. Unmatched works go to the black-box pool.