Phonorecords V

Photo Credit: Soundtrap

Let the Phonorecords V fireworks begin: The Copyright Royalty Board (CRB) has officially kicked off the high-stakes rate-setting proceeding, which will determine songwriter and publisher royalties for on-demand streaming (plus permanent downloads) between 2028 and 2032.

The Phono V commencement technically arrived in a Federal Register notice on 2025’s final day, though the CRB just recently confirmed the development in a standalone announcement. At the top level, those seeking to participate in the process have until January 30th to submit the relevant petition (plus a $150 filing fee).

And if history is any indication, a number of parties will look to make their voices heard here. As many will recall, the Phono III rate-setting debacle was replete with disagreements and took years to resolve.

But quicker doesn’t always mean better: The marathon Phono III showdown ultimately made way for the comparatively conflict-light Phono IV settlement. However, the latter’s CRB approval was accompanied by justified songwriter demands for transparency.

To be sure, it didn’t take very long for Spotify to capitalize on the Phono IV language by reclassifying nearly all its existing subscriptions as bundles, a seemingly small maneuver that had (and is having) a huge impact on stateside mechanicals.

Subsequently inked direct deals or not – Spotify’s still coming out ahead in terms of its compositional royalty payments – this remains a sore subject. Over the summer, it wasn’t by chance that federal lawmakers called out Spotify’s bundling craze, and the Mechanical Licensing Collective is plowing ahead with a lawsuit against the DSP.

(Previously dismissed, later revived, and now tangled in the discovery weeds, MLC v. Spotify has teed up a case management conference for January 22nd.)

Now, all these hard feelings – and more significantly the compensation that’s at stake into the next decade – will factor into the Phono V proceeding, which we’ll be tracking in detail.

Also initiated by the CRB: Proceedings for the use of recordings via satellite radio (SDARS IV) and compositions via public broadcasting (PB V). Right on cue, three petitions to participate have already poured in for PB V: from the Harry Fox Agency, ASCAP, and, earlier today, the Church Music Publishers Association.

Last month, the CRB confirmed a 2026 cost of living bump for mechanicals attributable to physical formats as well as permanent downloads. And on the recording side, the Web VI proceeding, owing in part to the government shutdown and the appointment of Trevor Jefferson as interim chief copyright royalty judge, is still in motion.