Copyright Judges Tune Up Streaming Royalties for Educational Radio Streams
Published Date: 12/4/2025
Proposed Rule
Summary
The Copyright Royalty Board is setting new rules and rates for how Educational Media Foundation and similar noncommercial webcasters pay to play music online from 2026 to 2030. This affects anyone streaming sound recordings without subscriptions, with updated fees and terms to keep the music flowing legally. Comments on these changes are open until January 5, 2026, so stakeholders have a chance to weigh in before the rules kick in.
Analyzed Economic Effects
6 provisions identified: 2 benefits, 1 costs, 3 mixed.
Fixed royalty payments 2026–2030
The proposed rule requires Educational Media Foundation (the Licensee) to pay set annual royalties for the period January 1, 2026 through December 31, 2030: 2026 — $7,125,000 ($593,750/month); 2027 — $7,410,000 ($617,500/month); 2028 — $7,706,400 ($642,200/month); 2029 — $8,014,656 ($667,888/month); 2030 — $8,335,242.24 ($694,603.52/month). These payments cover unlimited public performances and related ephemeral recordings on non-customized channels under the statutory licenses for that period.
5% Ephemeral / 95% Performance Split
Under the proposed rule, the Collective must credit 5% of all royalty payments as payment for Ephemeral Recordings and credit the remaining 95% as section 114 performance royalties for 2026–2030. All ephemeral recordings that are necessary and commercially reasonable for Eligible Transmissions are included in that 5% allocation.
Monthly payments, reports, and late fees
The Licensee must pay one-twelfth of the annual royalty each month on or before the 15th and submit a single monthly Report of Use within 30 days after the month. Late payments or late Statements of Account incur a late fee of 1.5% per month (or the highest lawful rate, whichever is lower), though the Collective may waive or lower late fees for immaterial or inadvertent failures.
Audit rules and who pays audit costs
Entities entitled to royalties may audit a Payor once per year for any of the prior three calendar years using a Qualified Auditor (a CPA). The verifying entity normally pays audit costs, but if the audit shows a net underpayment of 10% or more, the Payor must bear the reasonable audit costs and pay the underpayment with interest; overpayments need not be returned unless the parties agree.
Confidentiality and records retention rules
Statements of Account and related information are designated as Confidential Information and access is limited to specified parties (authorized Collective staff under confidentiality agreements, Qualified Auditors, copyright owners whose works are involved, and attorneys under protective order). The Licensee and the Collective must retain payment and distribution records for at least three prior calendar years.
SoundExchange designated as the Collective
The Judges designate SoundExchange, Inc. as the Collective to receive the Licensee's Statements of Account and royalty payments and to distribute royalties to copyright owners and performers for the 2026–2030 period. If SoundExchange dissolves or ceases to have a board with equal Copyright Owner and Performer representatives, a successor Collective may be recommended and the Judges must act to designate a successor within 30 days of a petition.
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