Market & Regulation
CRB Questions Phonorecords V Settlement Independence
Music Tech Policyhigh confidence
Why it matters
- →CRB judges are demanding proof of arm's-length bargaining in settlements involving vertically integrated industry giants.
- →The ruling challenges the economic accuracy of excluding inflation adjustments from statutory mechanical rates.
- →Independent songwriters and publishers gain leverage as the tribunal scrutinizes negotiation transparency and representation.
On September 18, Copyright Royalty Judges issued Order 10 regarding the Phonorecords V Subpart B settlement, requiring settling parties to justify the proposed mechanical rates. The order challenges the independence of negotiations between major publishers and record labels, asking for evidence that transactions were truly arm's-length despite potential overlapping ownership. Judges also questioned the exclusion of inflation adjustments from the base rate and whether excluded participants were fairly represented during drafting. The proceeding has been bifurcated and stayed pending this additional information, indicating a strict review of the settlement's validity.
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