No More Freeze: Copyright Royalty Board Moves to Keep Mechanical Rates Tied to Inflation Through 2032

The business of physical music and digital downloads is staring down a long-term blueprint. According to reporting from Music Business Worldwide, the US Copyright Royalty Board has published a proposed settlement that would govern mechanical royalty rates for vinyl, CDs, permanent downloads, ringtones, and music bundles from 2028 through 2032. Known as Phonorecords V, this proposal keeps the existing rate structure intact while securing annual adjustments tied to inflation. For songwriters and publishers, this is a massive structural shield. The current 2026 statutory rate sits at 13.1 cents per track (or 2.52 cents per minute of playing time, whichever is larger), which scales yearly with the Consumer Price Index. The settlement was filed on June 29 by a heavy-hitting coalition including Sony Music, Universal Music Group, Warner Music, A2IM, the NMPA, NSAI, and the Music Artists Coalition. Historically, these rates were frozen at 9.1 cents from 2006 until the Board finally rejected a continued freeze in 2022, calling a sixteen-year static rate unreasonable. Frankly, keeping these rates pegged to the actual cost of living is the only logical path forward if physical media is to remain a viable livelihood for creators rather than just a luxury novelty for labels. It is not a done deal yet. The Songwriters Guild of America, Word Collections, and songwriter George Johnson did not sign the settlement. If any of these parties file an objection before the August 10 deadline, the Board can still reject the proposal. Industry players and creators have until August 10 to submit their comments and objections to the Federal Register.