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
2026-16710, Distribution of Satellite Royalty Funds
The Copyright Royalty Judges solicit comments on a motion of Allocation Phase Parties for partial distribution of 2023 satellite royalty funds.
2026-16709, Distribution of Satellite Royalty Funds
The Copyright Royalty Judges (Judges) announce the commencement of proceedings to determine distribution of 2023 royalties deposited with the Copyright Office under the satellite carrier license. The Judges also set the date by which all parties wishing to participate and share in the distribution of satellite retransmission royalties for 2023, must file Petitions to Participate and pay the accompanying $150 filing fee. The Judges seek a single Petition to Participate in either or both the allocation phase and the distribution phase of the satellite royalty proceeding. Any party that fails to file a petition to participate by the time set forth in this notice shall not be a participant at any stage of either proceeding, unless the Judges accept a late petition to participate pursuant to 37 CFR 351.1(d).
2026-16708, Distribution of Cable Royalty Funds
The Copyright Royalty Judges (Judges) announce the commencement of proceedings to determine distribution of 2023 royalties deposited with the Copyright Office under the cable service statutory license. The Judges also set the date by which all parties wishing to participate and share in the distribution of cable retransmission royalties for 2023 must file Petitions to Participate and pay the accompanying $150 filing fee. The Judges seek a single Petition to Participate in either or both the allocation phase and distribution phase of the cable royalty proceeding. Any party that fails to file a petition to participate by the time set forth in this notice shall not be a participant at any stage of the proceeding, unless the Judges accept a late petition to participate pursuant to 37 CFR 351.1(d).
2026-16707, Distribution of 2023 Cable Royalty Funds
The Copyright Royalty Judges solicit comments on a motion of Allocation Phase Parties for partial distribution of 2023 cable royalty funds.
2026-13996, Determination of Rates and Terms for Making and Distributing Phonorecords (Phonorecords V)
Starting in 2028, new rules will set how much music makers pay to copy and share songs on CDs, vinyl, and digital formats until 2032. Musicians, record companies, and streaming services will all feel the impact as royalty rates and terms get updated. If you want to speak up, you’ve got until August 10, 2026, to send in your comments!
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.
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