Be sure you’re getting the Mechanical Royalty Rate increase
The mechanical royalty rate for physical and download formats has gone up to 12.7¢ in 2025. Make sure your licenses reflect the new rates and previous adjustments to avoid missing out.
Be sure you’re getting the Mechanical Royalty Rate increase
by CHRIS CASTLE via Music Tech Policy
As you probably already know, the statutory mechanical royalty rate for physical or downloads (not streaming) has increased as of January 1, 2025. This means that all floating rate licenses (e.g., not subject to controlled comp rates) should have increased as of January 1, 2025 from 12.4¢ to 12.7¢ due to the Phonorecords IV cost of living adjustment. (And of course should have increased in prior PR IV years in 24.)
It’s probably just a glitch, but I understand that HFA hasn’t updated the 1/1/25 rates yet for “licensing out” in at least one instance. I’m inclined to believe that the issue is with the database and would not be a one-off, but I could be wrong. That suggests to me that every songwriter and publisher with either a newly issued license since 1/1/25 or a floating rate license in place during PR IV rate period (2023-2027) should probably confirm that the respective COLA escalations have been properly applied as of January 1 of 2024 and 2025. I would imagine that this isn’t an isolated incident, but maybe it is. No reason to let grass grow, however.
And for reference, this is the rate for 2024 with the COLA adjustment.
12-21-2023 Phono IV COLA correcting amendments – as publishedDownload
