Selected Phonorecords V Comments: The Missing Record: Independent Songwriters Ask What the Phonorecords V Settlement Doesn’t Tell Us

Continuing our series highlighting objections to the proposed Phonorecords V settlement for mechanical royalties on physical and permanent downloads, our friends Helienne Lindvall, David Lowery, and Blake Morgan focus on a deceptively simple question: What is the record that allows the Copyright Royalty Judges to conclude this settlement is reasonable? Our friends do not argue that settlement is improper—or even necessarily that this settlement is unreasonable. Instead, they argue that Congress assigned the Judges, not the negotiating parties, responsibility for determining whether a private agreement provides a reasonable basis for rates imposed industry-wide. There’s just no record other than the NMPA’s settlement itself.

The comment also questions carrying the 12¢ Phonorecords IV benchmark forward through another five-year rate period simply because it remains indexed for inflation. CPI preserves the real value of the existing benchmark; it does not establish that the benchmark remains reasonable for 2028–2032. With vertically integrated companies operating on both sides of the “settlement”, the commenters argue that the missing economic record matters even more.

Selected Phonorecords V Comments

It’s that time again. It’s no secret that we are not fans of the NMPA’s “quick and cheap” settlement on the statutory mechanicl license for physical and downloads which in its own way is essentially “take this eat that” freeze with no explanation that just extends the rates we fought for in the last rate setting. (David, Helienne and Blake filed a joint comment that we’ll get to posting in coming days.). Hard as it may be to believe, there’s no real record to support the NMPA settlement aside from “quick and cheap” and “we’re big.” Don’t think that that one appears in the rules anywhere.

But it turns out we are far from being the only ones who managed to achieve escape velocity from the influence of NMPA. Today we’re highlighting another submission in the Phonorecords V Subpart B proceeding before the Copyright Royalty Board.

In these comments, Kevin M. Casini and Kaila C. Coleman argue that the proposed settlement preserves inflation adjustments but does not reconsider whether the underlying 12¢ statutory mechanical royalty remains an appropriate benchmark for the 2028–2032 rate period. They contend that changes in the music marketplace—including the resurgence of vinyl, increased catalog values, and the continuing importance of physical formats for many independent writers—warrant closer examination.

One passage that stood out:

“The Board’s obligation extends beyond determining whether a proposed settlement has support among major industry participants. The Board must determine whether the resulting rates are fair, reasonable, and consistent with the objectives of the Copyright Act.”

As always, we’re featuring these comments to encourage readers to review the arguments being presented to the Copyright Royalty Judges.