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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Key Dates
Department and Agencies
Related Federal Register Documents
2026-06055 — Adjustment to Sound Recordings by New Subscription Services and Ephemeral Recordings To Facilitate Those Performances License 2026 Royalty Rates
Starting January 1, 2026, new subscription music services will pay slightly higher royalties for playing songs online, thanks to a cost-of-living update. These changes, effective through 2030, adjust fees based on inflation to keep payments fair for artists and rights holders. If you run or use these services, expect a small bump in what you pay or earn starting March 30, 2026.
2026-04627 — Determination of Rates and Terms for Digital Performance of Sound Recordings by New Subscription Services and Making of Ephemeral Copies To Facilitate Those Performances (NSS V)
Starting January 1, 2026, new subscription services that play music as part of cable or satellite TV bundles will follow fresh rules on how much they pay for digital music performances and temporary copies. These rules, effective through 2030, set clear rates and terms agreed upon by major music and service players, making sure artists and rights holders get fair pay. If you’re a streaming service or music rights owner, these changes mean smoother, fairer payments for the next five years.
2026-04633 — Determination of Rates and Terms for Digital Performance of Sound Recordings and Making of Ephemeral Copies To Facilitate Those Performances (Web VI)
Starting January 1, 2026, certain public radio stations will follow new rules for paying royalties when they play music online and make temporary copies to do so. These rules, agreed upon by major players like NPR and SoundExchange, set clear rates and terms through 2030, helping everyone know what to expect. The changes kick in March 10, 2026, and could affect how much stations pay for digital music performances.
2026-04631 — Determination of Rates and Terms for Digital Performance of Sound Recordings and Making of Ephemeral Copies To Facilitate Those Performances (Web VI)
Starting January 1, 2026, new rules set how much Educational Media Foundation pays for playing music online and making temporary copies to do it. These rules last until the end of 2030 and come from a deal everyone agreed on, so no one objected. This means clearer costs and terms for digital music use, effective March 10, 2026.
2026-04632 — Determination of Rates and Terms for Digital Performance of Sound Recordings and Making of Ephemeral Copies To Facilitate Those Performances (Web VI)
Starting January 1, 2026, commercial broadcasters will follow new rules for paying royalties when they play music online without subscriptions. These rules set fair rates and terms for digital performances and temporary copies of songs, lasting through 2030. This means broadcasters and music rights groups like SoundExchange have a clear, agreed plan for sharing money from digital music plays.
2026-04630 — Determination of Rates and Terms for Digital Performance of Sound Recordings and Making of Ephemeral Copies To Facilitate Those Performances (Web VI)
Starting January 1, 2026, noncommercial educational webcasters will follow new rules for paying to play music online, lasting through 2030. These updated rates and terms come from a deal between music rights groups and college broadcasters, making sure artists get fair pay while schools keep streaming. The changes kick in on March 10, 2026, so webcasters should get ready to follow the new payment rules.
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