Royalty Rates and Terms for the Use of Musical Works

The Copyright Royalty Judges today issued their initial written determination of royalty rates and terms for the compulsory license for the use of musical works in the making and distributing of phonorecords.

These rates will apply from the date the determination becomes final, through December 31, 2022, or the effective date of successor rates. The written determination is currently being reviewed by the parties to the proceeding to determine which portions, if any, contain confidential information that must be redacted before release to the public.

Licensees must pay a royalty for use of musical works in the making and distributing of phonorecords in whichever is the greater amount of:

In 2018, 11.4 percent of revenue or 22.0 percent of total content cost
In 2019, 12.3 percent of revenue or 23.1 percent of total content cost
In 2020, 13.3 percent of revenue or 24.1 percent of total content cost
In 2021, 14.2 percent of revenue or 25.2 percent of total content cost
In 2022, 15.1 percent of revenue or 26.2 percent of total content cost

as the terms are described in the accompanying regulations.

The Judges also determined details relating to the rates, such as late fees and administrative terms. The regulatory language codifying the terms of the Judges’ determination is available on the Copyright Royalty Board website.

Publication of a Final Determination will occur in due course after the Register of Copyrights completes a statutory review and the Librarian of Congress approves the Final Determination.

Source: US Copyright Royalty Board