Songwriters Seek US$0.003 Per Stream in US Royalty Fight
Phonorecords V will set rates for 2028–2032, with implications for Australians earning mechanical royalties from US listening.
A songwriter coalition backed by Elton John’s longtime lyricist Bernie Taupin wants US streaming services to pay a US$0.003 mechanical royalty for each eligible stream, in a proposal that could affect Australian writers’ income from American listeners.
Mechanical royalties are paid for reproducing the underlying song — its music and lyrics — including through streaming. They are separate from payments for the sound recording and from performance royalties earned by songwriters and publishers.
In its 5 October filing with the US Copyright Royalty Board, the coalition proposes the US$0.003 starting rate for eligible on-demand streams and limited downloads in 2028, with annual inflation adjustments through 2032.
For illustration, US$0.003 multiplied by one million eligible streams is US$3,000. Actual mechanical royalties could be higher under the proposal’s minimum-payment safeguards. The money would also be divided between rights holders and subject to any contractual or administrative deductions, rather than going entirely to one songwriter.
The US proceeding, known as Phonorecords V, matters locally because Australian songwriters can earn royalties when their work is streamed in America.
For unpublished Australian songwriters who have opted into US reproduction-rights collection under their AMCOS agreements, APRA AMCOS says US organisations including The Mechanical Licensing Collective (The MLC) pass collected royalties to AMCOS, which distributes them to the writers.
For published songwriters whose US mechanical royalties are managed by a publisher or administrator, that representative collects on their behalf, according to The MLC.
Reporting from inside the Australian music business since '94.
The rates would apply to eligible US listening, rather than Australian domestic streams. Whether any writer receives more money will depend on the final rules, their listening figures and their share of each song.
The coalition, which calls itself the Copyright Authors, includes the Songwriters Guild of America, Eight Mile Music Companies, Music Artists Coalition, Word Collections and songwriter George Johnson.
Its supporting testimony includes Taupin and Australian-born composer Ashley Irwin, president of the Society of Composers & Lyricists.
In their joint statement, Irwin and songwriter representatives Rick Carnes and Eddie Schwartz call for per-stream minimums and separate treatment of mechanical and performance royalties. They warn, “we fear being the final generation of American professional music authors able to sustain ourselves by the royalties we earn”.
The coalition wants to replace the current US statutory formula with a mechanical royalty tied to each eligible play, backed by minimum-payment safeguards.
The current statutory system calculates a combined publishing royalty amount using measures such as a service’s revenue and its payments for using sound recordings. Performance royalties are then deducted to determine the mechanical payment, subject to minimums.
The Copyright Authors want their per-stream mechanical payment calculated separately, without that performance-royalty deduction.
Publishers and songwriters have also submitted a competing proposal.
The National Music Publishers’ Association and Nashville Songwriters Association International propose a combined royalty calculation that includes a US$0.004-per-play measure alongside measures based on service revenue, payments for using recordings and subscriber numbers.
They would use whichever measure produces the largest amount, then deduct performance royalties, with a cap on that deduction. The US$0.004 figure therefore covers both mechanical and performance royalties and cannot be compared directly with the coalition’s mechanical-only US$0.003 proposal.
The Digital Media Association confirmed on 6 October that parties had filed their proposals the previous day. President and CEO Graham Davies said its members were “looking forward to a timely resolution of this proceeding”.
These proposed streaming rates have not been adopted. The CRB docket lists the case as open and in discovery, the stage when parties exchange evidence. The judges still have to decide the rates for 2028–2032.
