US Copyright Board to Set Streaming Music Royalties
Digital service providers and music publishers submit proposals amidst renewed tensions over mechanical royalty rates.
By Letizia Giugliano
2 min readHuman-Edited, AI-Assisted
The US Copyright Royalty Board (CRB) has initiated the Phonorecords V proceeding, a critical process to establish mechanical royalty rates for music streaming services over the next five years. This week marks the submission of written testimonies and rate proposals from digital service providers (DSPs) and music publishers, highlighting the ongoing debate about fair compensation for intellectual property in the digital music landscape [Music Ally](https://musically.com/2026/10/07/dima-hopes-for-timely-resolution-of-phonorecords-v-proceeding/).
Setting Future Royalty Rates
The Phonorecords V proceeding, overseen by the US Copyright Royalty Board, will define mechanical royalty rates for streaming for the next five years Music Ally. This involves submissions from key industry players, including music publishers and the Digital Media Association (DiMA), which represents DSPs. The outcome will impact how creators and rights holders are compensated for their intellectual property distributed through streaming platforms Music Ally.
Industry Perspectives and Revenue Growth
DiMA, through its president and CEO Graham Davies, expressed optimism for a timely resolution, noting significant growth in US music publishing revenues. These revenues increased by more than 30% since 2022, rising from $5.6 billion to $7.3 billion, a growth rate that outpaced recorded music and demonstrated continued innovation in streaming, reflecting the value of creative intellectual property Music Ally. Conversely, the National Music Publishers' Association (NMPA), led by David Israelite, has voiced strong criticisms, particularly directed at Spotify. Israelite accused Spotify of violating agreements and encouraged other DSPs to negotiate separately Music Ally.
Recent History of Disputes
The current proceeding follows the Phonorecords IV process in 2022, which concluded with a surprisingly quick and amicable settlement, contrasting with previous disputes over rates Music Ally. However, tensions resurfaced after Spotify adjusted its rates for 'bundling' services following the addition of audiobooks. This move reignited friction between publishers and DSPs, setting a contentious backdrop for the Phonorecords V negotiations Music Ally.
The Path Ahead
As written testimonies are submitted this week, the industry watches to see if the DSPs will present a united front or if the divisions highlighted by the NMPA will impact negotiations Music Ally. DiMA's hope for a speedy resolution reflects the industry's desire to continue building on the success of streaming for all stakeholders: rights owners, music creators, and DSPs alike. This ongoing discussion is a key piece of patent news for those tracking the broader landscape of intellectual property rights, as reported by The Patent® magazine Music Ally.
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