Who sets music royalty rates, and how?

Many music deals are negotiated privately, but a handful of uses, including the mechanical side of music publishing income, run on licenses the Copyright Act makes available to anyone who follows its terms, and someone has to set the price. That job belongs to the Copyright Royalty Judges, often called the Copyright Royalty Board. This page explains who they are, how their proceedings run and how to follow one, as part of our entertainment law guidance. If the split between a song and a recording is new to you, our guide to the music copyrights puzzle is a good place to start.

How a rate proceeding runs, step by step

The statute fixes the order and several of the deadlines (17 U.S.C. 803):

1. Notice. The Judges publish a Federal Register notice calling for petitions to participate (803(b)(1)(A)(i)).
2. Petitions. Anyone who wants to take part files within 30 days, with a $150 fee (803(b)(1)(A)(ii); 803(b)(2)(D)).
3. Negotiation. A 3-month voluntary negotiation period follows (803(b)(3)). The Judges may adopt a settlement among some or all participants as the basis for statutory rates, after giving those who would be bound a chance to comment (17 U.S.C. 801(b)(7)(A)).
4. Written direct statements. Testimony and exhibits are due 4 to 5 months after negotiation ends (803(b)(6)(C)(i), (ii)).
5. Discovery and settlement conference. Discovery runs 60 days, and a settlement conference follows within a 21-day period (803(b)(6)(C)(iv), (x)).
6. Hearing. All three Judges preside, unless the matter is decided on a paper record (803(a)(2); 803(b)(5)).
7. Determination. The Judges decide by majority vote within 11 months after the settlement period (803(a)(3); 803(c)(1)). A rehearing motion is due within 15 days and is granted only in exceptional cases (803(c)(2)).
8. Legal review, publication and appeal. The Register of Copyrights may correct legal errors within 60 days, with Federal Register publication by then (802(f)(1)(D); 803(c)(6)), and an appeal to the D.C. Circuit is due within 30 days after publication (803(d)(1)).

Who are the Copyright Royalty Judges?

The Librarian of Congress appoints three full-time Judges, one of them as Chief Judge, after consulting the Register of Copyrights (17 U.S.C. 801(a)). Each must be a lawyer with at least seven years of legal experience; the Chief Judge needs at least five years of experience in adjudications, arbitrations or court trials, and of the other two, one must have significant knowledge of copyright law and the other of economics (17 U.S.C. 802(a)). Terms run six years, with reappointment allowed (17 U.S.C. 802(c)), and the Register of Copyrights can correct material legal errors in their final determinations (17 U.S.C. 802(f)(1)(D)).

Which rates do they set?

The Judges set and adjust rates and terms for the statutory licenses in sections 112(e), 114, 115, 116, 118, 119 and 1004 of the Copyright Act (17 U.S.C. 801(b)(1)). They also set the administrative assessment that digital services pay to fund the Mechanical Licensing Collective (17 U.S.C. 801(b)(8)), which our page on how the Mechanical Licensing Collective pays songwriters explains. For music, each set of rates sits in its own part of the regulations:

Our page on how artists get paid from internet radio follows the webcasting money. Some music rates come from elsewhere: rate court proceedings under the ASCAP and BMI consent decrees are heard in the Southern District of New York, as the Copyright Office notes in its Music Modernization Act FAQ (see our page on performing rights organizations and their consent decrees). And AM and FM stations owe no sound recording royalty, because that performance right covers only digital audio transmissions (17 U.S.C. 106(6)) and nonsubscription broadcast transmissions are exempt (17 U.S.C. 114(d)(1)(A)), as our page on why radio does not pay recording artists explains.

How often do rate proceedings start?

Section 804 sets the calendar. For mechanicals, a petition to start a proceeding may be filed in 2006 and every fifth calendar year after that, and public broadcasting follows the same cycle (17 U.S.C. 804(b)(4), (6)); webcasting proceedings repeat every fifth calendar year after January 2009 (17 U.S.C. 804(b)(3)(A)). If no one files a petition in a scheduled year, the Judges must still publish a notice commencing the proceeding by January 5 (17 U.S.C. 803(b)(1)(A)(i)(V)).

The current mechanical cycle shows how this works. By a notice published December 31, 2025, the Judges commenced Phonorecords V, the proceeding to set rates and terms for making and distributing phonorecords from January 1, 2028, through December 31, 2032, with petitions to participate due January 30, 2026 (90 FR 61424). The Board's announcements list proceedings commenced at the same time for satellite radio and preexisting subscription services and for public broadcasting, also for 2028 through 2032 (CRB announcements). When rates expire on a set date, successor rates take effect the next day even if the determination comes later, and licensees keep paying the old rates meanwhile (17 U.S.C. 803(d)(2)(A)).

The Board's announcements page, read on October 4, 2026, lists these recent music rate actions:

Can a rate decision be appealed?

Yes, by an aggrieved participant who fully participated and would be bound, within 30 days after the determination is published in the Federal Register, to the U.S. Court of Appeals for the District of Columbia Circuit; otherwise the determination becomes final (17 U.S.C. 803(d)(1)). The court can modify or vacate it, enter its own determination, or send it back to the Judges (17 U.S.C. 803(d)(3)). An appeal does not suspend payment: licensees keep paying, and overpayments or underpayments are settled within 60 days after the appeal ends (17 U.S.C. 803(d)(2)(C)).

Why do some rates change every year?

Some rates carry a built-in cost of living adjustment. For physical copies and permanent downloads, the Judges must adjust the mechanical rate each year based on the Consumer Price Index, publish the new figures in the Federal Register at least 25 days before January 1, and apply them from January 1 (37 CFR 385.11(a)(2)). The 2026 adjustment appeared on December 1, 2025 (90 FR 55045), and our page on the mechanical royalty rate in 2026 sets out the figures. The same Federal Register page carries a 2.9% adjustment to the satellite carrier license rates for 2026. These updates apply a formula already in the regulations rather than starting a new proceeding.

How can you follow or take part?

The Board’s website, crb.gov, posts announcements, Federal Register notices and rate proceeding pages, offers a CRB News subscription, and runs eCRB, its online filing and case management system, where filings made after June 15, 2017 can be searched (Copyright Royalty Board). To participate formally, you file a petition within the window the notice sets and pay the $150 fee, and the Judges can exclude a petitioner without a significant interest (17 U.S.C. 803(b)(2)). Individuals may represent themselves, but all other parties, such as a publishing company or a label, must appear through an attorney (37 CFR 303.2).

What changes the answer

• The rate standard. For mechanicals and for webcasting and other transmissions under 114(d)(2), the Judges must set the rates a willing buyer and a willing seller would have negotiated in the marketplace (17 U.S.C. 115(c)(1)(F); 114(f)(1)(B)).
• The type of service. Webcasting rates must distinguish among the types of services in operation and include a minimum fee for each type (114(f)(1)(B)).
• A settlement. If participants agree to rates for a shorter period and the Judges adopt them, those rates stay in effect for the full period, adjusted for inflation during the extra time (17 U.S.C. 805).
• A direct deal. A license voluntarily negotiated between owners and licensees is given effect in place of the Judges' determination (115(c)(2)(A)(i); 114(f)(2)). Our IP licensing work covers those negotiated agreements.

A worked example

Common mistakes

• Learning about a proceeding after the 30-day petition window has closed, which leaves only the settlement comment route.
• Filing a petition for a company or label without an attorney, which 37 CFR 303.2 does not allow.
• Expecting to appeal a determination you did not fully participate in; 803(d)(1) limits appeals to participants who would be bound.
• Holding back royalty payments while an appeal is pending, when the statute requires licensees to keep paying.
• Expecting the Judges to set sync, sample or PRO fees, which are negotiated or decided elsewhere.
• Paying or auditing physical and download mechanicals at last year's rate after January 1.

What to do this week

1. Subscribe to CRB News on crb.gov so the next notice reaches you inside its 30-day window.
2. List the statutory licenses your income or service touches, using the table of 37 CFR parts above.
3. Search eCRB for the docket of any proceeding that affects you, such as Phonorecords V.
4. Find the clauses in your publishing, recording or distribution contracts that refer to the statutory rate, and note January 1, 2028, as the next mechanical rate change.
5. If your company may take part in a future proceeding, line up counsel before the notice appears.
6. Check the current figures on our page about the 2026 mechanical rate before you pay or audit a statement.

Frequently asked questions

Do the Judges also decide how royalties are divided?

For some funds, yes. They authorize distribution of cable, satellite and digital audio recording royalties under sections 111, 119 and 1007, and decide any controversy over them (17 U.S.C. 801(b)(3)). In August 2025, for example, they commenced proceedings to distribute 2022 cable and satellite royalties, with petitions and the $150 fee due September 19, 2025.

Do these rates apply to recordings made before 1972?

Yes, for webcasting and similar transmissions. A service that meets the statutory license conditions pays for pre-1972 recordings under the same rates and terms adopted under sections 112(e) and 114(f) (17 U.S.C. 1401(b)). Our page on pre-1972 sound recordings explains the rest of that law.

Can you comment on a proposed settlement without being a participant?

Yes. The Judges must give anyone who would be bound by a settlement's rates a chance to comment, and participants who would be bound may also object to its adoption (17 U.S.C. 801(b)(7)(A)(i)). If such a participant objects, the Judges may decline to apply it to participants who are not parties to it when they conclude it is not a reasonable basis for rates (801(b)(7)(A)(ii)).

Do these rates apply when you release a cover song?

Yes, if you rely on the compulsory license. Physical copies and permanent downloads of a cover use the mechanical rates in 37 CFR 385.11, and our page on cover song licenses explains the notice and payment steps.

Is a rate appeal the same as a copyright lawsuit?

No. A rate appeal goes straight to the D.C. Circuit from the Judges' determination, while a copyright infringement lawsuit begins in a federal district court, because state courts have no jurisdiction over copyright claims (28 U.S.C. 1338(a)). Our page on federal IP lawsuits in Atlanta explains how that second path works for a Georgia business.

Zala IP Law advises songwriters, artists, publishers and labels on royalties, licensing and publishing. If a rate change affects a deal you are negotiating or a statement you are reviewing, request a consultation or call 404-313-1701.