The royalty rates and terms applied by The MLC are set by the U.S. Copyright Royalty Board (CRB) through "rate proceedings" that occur every five years. The rates decided from these proceedings are called the statutory royalty rates.
The rates vary depending on how the sound recording of the musical work/song is distributed. For example, the rate is different for permanent downloads (this rate is a fixed amount per sale) and various types of interactive streaming offerings (these rates are a formula that results in an amount per play).
Each rate period is referred to as “Phonorecords,” followed by a Roman numeral (I, II, III, etc.) to indicate the order of the decisions.
Phonorecords I - applies to the period 1/1/08 – 12/31/12
Phonorecords II - applies to the period 1/1/13 - 12/31/17
Phonorecords III - applies to the period of 1/1/18 - 12/31/22
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- For more information on Phono III, please visit our page here.
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Phonorecords IV - applies to the period 1/1/23 - 12/31/27
The rates vary depending on how the sound recording of the musical work/song is distributed. For example, the rate is different for permanent downloads (the rate is a fixed amount per sale) and various types of interactive streaming offerings (the rate is a formula that results in an amount per play).
Click here to visit our website page where you will find a detailed explanation of the statutory royalty rates and a short explanation video.