Market & Regulation
Critics Question Phonorecords V Settlement Record
Music Tech Policyhigh confidence
Why it matters
- →Challenges the legal standard for validating royalty settlements without independent economic data.
- →Highlights risks of self-dealing in negotiations involving vertically integrated music conglomerates.
- →Sets precedent for how 'reasonableness' is defined in future copyright royalty proceedings.
Independent songwriters Helienne Lindvall, David Lowery, and Blake Morgan have filed comments objecting to the proposed Phonorecords V settlement for mechanical royalties. They argue that the Copyright Royalty Judges lack a proper economic record to justify the settlement's reasonableness, particularly its reliance on the 12¢ Phonorecords IV benchmark indexed for inflation. The commenters contend that while CPI preserves real value, it does not establish that the rate remains fair for the 2028–2032 period. This challenge highlights concerns about vertically integrated companies influencing rates on both sides of the negotiation.
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