2026-04631RuleWallet

Educational Media Foundation's Streaming Royalties Locked In Until 2030

Published Date: 3/10/2026

Rule

Summary

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.

Analyzed Economic Effects

6 provisions identified: 2 benefits, 2 costs, 2 mixed.

Fixed Annual Royalties for EMF 2026–2030

Educational Media Foundation (the Licensee) must pay specified annual royalty amounts for the period 2026 through 2030: 2026 — $7,125,000.00 ($593,750.00 per month); 2027 — $7,410,000.00 ($617,500.00 per month); 2028 — $7,706,400.00 ($642,200.00 per month); 2029 — $8,014,656.00 ($667,888.00 per month); and 2030 — $8,335,242.24 ($694,603.52 per month). These amounts apply to all Eligible Transmissions and required Ephemeral Recordings for each calendar year.

Monthly Payment and Reporting Schedule

The Licensee must pay one-twelfth of the annual royalty each month on or before the fifteenth day of the month and submit a Statements of Account with each payment. The Licensee must also submit a monthly Report of Use reflecting actual total Performances by the 30th day after the end of the month. Payments must be in U.S. dollars and made by wire per the Collective's instructions.

5% Ephemeral / 95% Performance Allocation

The Collective must credit 5% of all royalty payments as payment for Ephemeral Recordings and credit the remaining 95% to section 114 performance royalties for each year during 2026–2030. Ephemeral Recordings that are necessary and commercially reasonable to make Eligible Transmissions are included in the 5%.

Distribution Rules and Three-Year Unclaimed Funds

The Collective (SoundExchange, Inc.) must promptly distribute royalties to Copyright Owners and Performers who provide necessary payee information. If the Collective cannot identify or locate a payee, it must hold the funds in a segregated trust account for three years from first distribution; after the three-year period, unclaimed funds may be applied to offset allowable costs under 17 U.S.C. 114(g)(3).

Audit Rights, Underpayment Interest, and Audit Costs

Entities entitled to payment or distribution may audit the Payor once per year covering any of the prior three calendar years. If an audit finds an underpayment, the Payor must remit the underpaid amount with interest at the rate in Sec. 380.2(d). The verifying entity pays audit costs unless the auditor finds a net underpayment of 10% or more, in which case the Payor must pay reasonable verification costs in addition to the underpayment.

Confidentiality Protections for Statements of Account

Statements of Account and related information may be designated Confidential Information. The Collective may use Confidential Information only for royalty collection/distribution and must limit access to employees, auditors, counsel, and rights holders under written confidentiality agreements. Recipients must safeguard Confidential Information using a reasonable standard of care.

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Key Dates

Published Date
Rule Effective
3/10/2026
3/10/2026

Department and Agencies

Department
Independent Agency
Agency
Library of Congress
Copyright Royalty Board
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