Rule2026-04631
Determination of Rates and Terms for Digital Performance of Sound Recordings and Making of Ephemeral Copies To Facilitate Those Performances (Web VI)
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Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
March 10, 2026
Effective
March 10, 2026
Issuing agencies
Library of CongressCopyright Royalty Board
Abstract
The Copyright Royalty Judges publish a final rule governing the rates and terms for the digital performance of sound recordings by Educational Media Foundation and for the making of ephemeral recordings necessary for the facilitation of such transmissions for the period from January 1, 2026, through December 31, 2030.
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<title>Federal Register, Volume 91 Issue 46 (Tuesday, March 10, 2026)</title>
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[Federal Register Volume 91, Number 46 (Tuesday, March 10, 2026)]
[Rules and Regulations]
[Pages 11462-11465]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-04631]
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LIBRARY OF CONGRESS
Copyright Royalty Board
37 CFR Part 380
[Docket No. 23-CRB-0012-WR (2026-2030)]
Determination of Rates and Terms for Digital Performance of Sound
Recordings and Making of Ephemeral Copies To Facilitate Those
Performances (Web VI)
AGENCY: Copyright Royalty Board (CRB), Library of Congress.
ACTION: Final rule.
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SUMMARY: The Copyright Royalty Judges publish a final rule governing
the rates and terms for the digital performance of sound recordings by
Educational Media Foundation and for the making of ephemeral recordings
necessary for the facilitation of such transmissions for the period
from January 1, 2026, through December 31, 2030.
DATES: Effective March 10, 2026.
Applicability date: The regulations apply to the license period
beginning January 1, 2026, and ending December 31, 2030.
ADDRESSES: Docket: For access to the docket, go to eCRB, the Copyright
Royalty Board's electronic filing and case management system, at
<a href="https://app.crb.gov/">https://app.crb.gov/</a>, and search for docket number 23-CRB-0012-WR
(2026-2030).
FOR FURTHER INFORMATION CONTACT: Anita Brown, CRB Program Specialist,
at (202) 707-7658 or <a href="/cdn-cgi/l/email-protection#a9cadbcbe9c5c6ca87cec6df"><span class="__cf_email__" data-cfemail="bddecfdffdd1d2de93dad2cb">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
Background
On December 4, 2025, the Copyright Royalty Judges (``Judges'')
published a proposed rule governing the rates and terms for the digital
performance of sound recordings by Educational Media Foundation and for
the making of ephemeral recordings necessary for the facilitation of
such transmissions for the period from January 1, 2026, through
December 31, 2030.90 FR 55821. The rates and terms in the proposed rule
were the subject of a settlement between SoundExchange and NRB Music
Licensing Committee, Inc (``Settling Parties''), together with
Educational Media Foundation. Joint Motion to Adopt Partial Settlement,
Docket No. 23-CRB-0012-WR (2026-2030). Those who would be bound by the
terms, rates, or other determination set by the agreement were given
the opportunity to comment and participants in the Web VI proceeding
were given the opportunity to object to any or all of the proposed
regulations.
The Judges received no comments or objections in response to the
December 4, 2025, Federal Register notice.
The Judges ``may decline to adopt the agreement as a basis for
statutory terms and rates for participants that are not parties to the
agreement,'' only ``if any participant [in the proceeding] objects to
the agreement and the [Judges] conclude, based on the record before
them if one exists, that the agreement does not provide a reasonable
basis for setting statutory terms or rates,'' 17 U.S.C.
801(b)(7)(A)(ii), or where the negotiated agreement includes provisions
that are contrary to the provisions of the applicable licenses or
otherwise contrary to statutory law. No Web VI participant has objected
to the settlement. The Register of Copyrights has completed her review
of the CRB's Final Rule for legal error, under 17 U.S.C. 803(f)(1)(D),
and will not be issuing any corrections. In the absence of any
objection from a participant, and in the absence of any cognizable
indication that the Final Rule includes provisions that are contrary to
the applicable licenses or otherwise contrary to statutory law, the
provisions of 17 U.S.C. 801(b)(7)(A) direct the Judges to adopt the
Final Rule. Therefore, the Judges adopt the terms and rates as
proposed. The Judges find that under the circumstances of this
proceeding and this settlement, adoption of the Final Rule is directed
by the statute, and that such directed adoption is principally a
ministerial function by the Judges.
List of Subjects in 37 CFR Part 380
Copyright, Sound recordings, Webcasters.
Final Regulations
For the reasons set forth in the preamble, the Copyright Royalty
Judges amend 37 CFR part 380 as follows:
PART 380--RATES AND TERMS FOR TRANSMISSIONS BY ELIGIBLE
NONSUBSCRIPTION SERVICES AND NEW SUBSCRIPTION SERVICES AND FOR THE
MAKING OF EPHEMERAL REPRODUCTIONS TO FACILITATE THOSE TRANSMISSIONS
0
1. The authority citation for part 380 continues to read as follows:
Authority: 17 U.S.C. 112(e), 114(f), 804(b)(3).
0
2. Add subpart F to read as follows:
Subpart F--Educational Media Foundation
Sec.
380.50 Definitions.
380.51 Royalty fees for Eligible Transmissions of sound recordings
and the making of Ephemeral Recordings.
380.52 Making payment of royalty fees.
380.53 Delivering statements of account.
380.54 Distributing royalty fees.
380.55 Handling Confidential Information.
380.56 Auditing payments and distributions.
Sec. 380.50 Definitions.
For purposes of this subpart, the following definitions apply:
Collective means the collection and distribution organization that
is designated by the Copyright Royalty Judges, which, for the current
rate period, is SoundExchange, Inc.
Copyright Owners means sound recording copyright owners, and rights
[[Page 11463]]
owners under 17 U.S.C. 1401(l)(2), who are entitled to royalty payments
made under this subpart pursuant to the statutory licenses under 17
U.S.C. 112(e) and 114.
Digital Audio Transmission has the same meaning as in 17 U.S.C.
114(j)(5).
Eligible Transmission means an ``eligible nonsubscription
transmission'' as defined in 17 U.S.C. 114(j)(6) that is:
(1) made by the Licensee;
(2) subject to licensing under 17 U.S.C. 114(d)(2);
(3) transmitted over the internet on a channel or station offered
for streaming to any member of the public who chooses to listen and
that provides only linear programming that is not personalized to any
particular listener.
Ephemeral Recording has the same meaning as in 17 U.S.C. 112.
Licensee means Educational Media Foundation and its affiliated
organizations under common control, including K-LOVE, Inc. and The
Association for Community Education, Inc., so long as each of these
organizations is a Noncommercial Webcaster.
Noncommercial Webcaster has the same meaning as in 17 U.S.C.
114(f)(4)(E)(i).
Nonsubscription has the same meaning as in 17 U.S.C. 114(j)(9).
Payor means the entity required to make royalty payments to the
Collective or the entity required to distribute royalty fees collected,
depending on context. The Payor is:
(1) The Licensee, in relation to the Collective; and
(2) The Collective in relation to a Copyright Owner or Performer.
Performance means each instance in which any portion of a sound
recording is publicly performed to a listener by means of a Digital
Audio Transmission (e.g., the delivery of any portion of a single track
from a compact disc to one listener), but excludes the following:
(1) A performance of a sound recording that does not require a
license (e.g., a sound recording that is not subject to protection
under title 17, United States Code);
(2) A performance of a sound recording for which the Licensee has
previously obtained a license from the Copyright Owner of such sound
recording; and
(3) An incidental performance that both:
(i) Makes no more than incidental use of sound recordings
including, but not limited to, brief musical transitions in and out of
commercials or program segments, brief performances during news, talk
and sports programming, brief background performances during disk
jockey announcements, brief performances during commercials of sixty
seconds or less in duration, or brief performances during sporting or
other public events; and
(ii) Does not contain an entire sound recording, other than ambient
music that is background at a public event, and does not feature a
particular sound recording of more than thirty seconds (as in the case
of a sound recording used as a theme song).
Performers means the independent administrators identified in 17
U.S.C. 114(g)(2)(B) and (C) and the parties identified in 17 U.S.C.
114(g)(2)(D).
Qualified Auditor means an independent Certified Public Accountant.
Sec. 380.51 Royalty fees for Eligible Transmissions of sound
recordings and the making of Ephemeral Recordings.
(a) Royalty fees. During the period 2026-2030, the Licensee's
royalty payment for all Eligible Transmissions made by the Licensee
during each year, and for Ephemeral Recordings of sound recordings made
pursuant to 17 U.S.C. 112(e) to facilitate such Eligible Transmissions,
shall be as follows:
(1) 2026: $7,125,000.00 ($593,750.00 per month);
(2) 2027: $7,410,000.00 ($617,500.00 per month);
(3) 2028: $7,706,400.00 ($642,200.00 per month);
(4) 2029: $8,014,656.00 ($667,888.00 per month); and
(5) 2030: $8,335,242.24 ($694,603.52 per month).
(b) Allocation between Ephemeral Recordings and performance royalty
fees. The Collective must credit 5% of all royalty payments as payment
for Ephemeral Recordings and credit the remaining 95% to section 114
royalties. All Ephemeral Recordings that the Licensee makes which are
necessary and commercially reasonable for making Eligible Transmissions
are included in the 5%.
(c) Other Digital Audio Transmissions. During the period 2026-2030,
if the Licensee makes any Digital Audio Transmissions of sound
recordings subject to licensing under 17 U.S.C. 114(d)(2) other than
Eligible Transmissions, the provisions of subparts A and B of this part
shall apply.
Sec. 380.52 Making payment of royalty fees.
(a) Payment to the Collective. The Licensee must make the royalty
payments due under this part to SoundExchange, Inc., which is the
Collective designated by the Copyright Royalty Board to collect and
distribute royalties under this part.
(b) Monthly payments. The Licensee must make royalty payments on a
monthly basis. Each month during the period 2026-2030, the Licensee
shall pay one-twelfth of the annual royalty for the relevant year, as
set forth in Sec. 380.51(a). Each such payment shall be made on or
before the fifteenth day of the month and shall be accompanied by a
Statements of Account in accordance with Sec. 380.53. Payments shall
be made in U.S. dollars in accordance with wiring instructions that
will be separately provided by the Collective from time to time.
(c) Reports of Use. The Licensee shall submit a single, monthly
Report of Use, as described in 37 CFR 370.4, reflecting actual total
Performances made by the Licensee and all of its affiliates, for all
Eligible Transmissions and any other Digital Audio Transmissions it may
make as a Noncommercial Webcaster pursuant to the statutory licenses
under 17 U.S.C. 112(e) and 114. Reports of Use are due on or before the
30th day after the end of the month in which the Licensee made Eligible
Transmissions.
(d) Late fees. The Licensee must pay a late fee for each payment
and each Statement of Account that the Collective receives after the
due date. The late fee is 1.5% (or the highest lawful rate, whichever
is lower) of the late payment amount per month. The late fee for a late
Statement of Account is 1.5% of the payment amount associated with the
Statement of Account. Late fees accrue from the due date until the date
that the Collective receives the late payment or late Statement of
Account.
(1) Waiver of late fees. The Collective may waive or lower late
fees for immaterial or inadvertent failures of the Licensee to make a
timely payment or submit a timely Statement of Account.
(2) Notice regarding noncompliant Statements of Account. If it is
reasonably evident to the Collective that a timely-provided Statement
of Account is materially noncompliant, the Collective must notify the
Licensee within 90 days of discovery of the noncompliance.
(e) Use of account numbers. If the Collective notifies the Licensee
of an account number to be used to identify its royalty payments for a
particular service offering, the Licensee must include that account
number in the identifying information for any payment for that service
offering made by electronic transfer, in its Statements of Account for
that service offering under Sec. 380.53, and in the transmittal of its
Reports of Use for that service offering under Sec. 370.4 of this
chapter.
[[Page 11464]]
Sec. 380.53 Delivering statements of account.
Statements of Account. Any payment due under this part must be
accompanied by a corresponding Statement of Account that must contain
the following information:
(1) The amount of the royalty payment and the month for which it is
submitted;
(2) The name, address, business title, telephone number, facsimile
number (if any), electronic mail address (if any) and other contact
information of the person to be contacted for information or questions
concerning the content of the Statement of Account;
(3) The account number assigned to the Licensee by the Collective
for the relevant service offering (if the Licensee has been notified of
such account number by the Collective);
(4) The signature of:
(i) The Licensee or a duly authorized agent of the Licensee;
(ii) A partner or delegate if the Licensee is a partnership; or
(iii) An officer of the corporation if the Licensee is a
corporation.
(5) The printed or typewritten name of the person signing the
Statement of Account;
(6) If the Licensee is a partnership or corporation, the title or
official position held in the partnership or corporation by the person
signing the Statement of Account;
(7) A certification of the capacity of the person signing;
(8) The date of signature; and
(9) An attestation to the following effect: I, the undersigned
owner/officer/partner/agent of the Licensee have examined this
Statement of Account and hereby state that it is true, accurate, and
complete to my knowledge after reasonable due diligence and that it
fairly presents, in all material respects, the liabilities of the
Licensee pursuant to 17 U.S.C. 112(e) and 114 and applicable
regulations adopted under those sections.
(b) Certification. Licensee's Chief Financial Officer or, if
Licensee does not have a Chief Financial Officer, a person authorized
to sign Statements of Account for the Licensee, must submit a signed
certification on an annual basis attesting that the Licensee's royalty
statements for the prior year represent a true and accurate
determination of the royalties due.
Sec. 380.54 Distributing royalty fees.
(a) Distribution of royalties. (1) The Collective must promptly
distribute royalties received from the Licensee to Copyright Owners and
Performers that are entitled thereto, or to their designated agents.
The Collective shall only be responsible for making distributions to
those who provide the Collective with information as is necessary to
identify and pay the correct recipient. The Collective must distribute
royalties on a basis that values all Performances by the Licensee
equally based upon the information provided under the Reports of Use
requirements for the Licensee pursuant to Sec. 370.4 of this chapter
and this subpart. In any case in which the Licensee has not provided a
compliant Report of Use within three years after the due date specified
in Section 370.4(c), whether for the current license period or
otherwise, and the board of directors of the Collective determines that
further efforts to seek the missing Report of Use from the Licensee
would not be warranted, the Collective may distribute the royalties
associated with the Licensee's missing Report of Use on the basis of
Reports of Use for the corresponding calendar year filed by other
licensees.
(2) The Collective must use its best efforts to identify and locate
Copyright Owners and featured artists in order to distribute royalties
payable to them under 17 U.S.C. 112(e) and 114. Such efforts must
include, but not be limited to, searches in Copyright Office public
records and published directories of Copyright Owners.
(b) Unclaimed funds. If the Collective is unable to identify or
locate a Copyright Owner or Performer who is entitled to receive a
royalty distribution under this subpart, the Collective must retain the
required payment in a segregated trust account for a period of three
years from the date of the first distribution of royalties from the
relevant payment by the Licensee. No claim to distribution shall be
valid after the expiration of the three-year period. After expiration
of this period, the Collective may apply the unclaimed funds to offset
any costs deductible under 17 U.S.C. 114(g)(3).
(c) Retention of records. The Licensee shall keep and securely
store complete and accurate books and records relating to payments of
royalties for a period of not less than the prior three calendar years,
including all supporting documentation necessary to permit verification
of the accuracy of its payments pursuant to Sec. 380.51. The
Collective shall keep books and records relating to distributions of
royalties for a period of not less than the prior three calendar years.
(d) Designation of the Collective. (1) The Judges designate
SoundExchange, Inc., as the Collective to receive Statements of Account
and royalty payments from the Licensee and to distribute royalty
payments to each Copyright Owner and Performer (or their respective
designated agents) entitled to receive royalties under 17 U.S.C. 112(e)
or 114(g).
(2) If SoundExchange, Inc. should dissolve or cease to be governed
by a board consisting of equal numbers of representatives of Copyright
Owners and Performers, then it shall be replaced for the applicable
royalty period by a successor Collective according to the following
procedure:
(i) The nine Copyright Owner representatives and the nine Performer
representatives on the SoundExchange board as of the last day preceding
SoundExchange's cessation or dissolution shall vote by a majority to
recommend that the Copyright Royalty Judges designate a successor and
must file a petition with the Copyright Royalty Judges requesting that
the Judges designate the named successor and setting forth the reasons
therefore.
(ii) Within 30 days of receiving the petition, the Copyright
Royalty Judges must issue an order designating the recommended
Collective, unless the Judges find good cause not to make and publish
the designation in the Federal Register.
Sec. 380.55 Handling Confidential Information.
(a) Definition. For purposes of this part, ``Confidential
Information'' means the Statements of Account, any information
contained therein, and any information pertaining to the Statements of
Account reasonably designated as confidential by the party submitting
the statement. Confidential Information does not include documents or
information that at the time of delivery to the Collective is public
knowledge. The party seeking information from the Collective based on a
claim that the information sought is a matter of public knowledge shall
have the burden of proving to the Collective that the requested
information is in the public domain.
(b) Use of Confidential Information. The Collective may not use any
Confidential Information for any purpose other than royalty collection
and distribution and activities related directly thereto.
(c) Disclosure of Confidential Information. The Collective shall
limit access to Confidential Information to:
(1) Those employees, agents, consultants, and independent
contractors of the Collective, subject to an appropriate written
confidentiality agreement, who are engaged in the collection and
distribution of royalty payments hereunder and activities
[[Page 11465]]
related directly thereto who require access to the Confidential
Information for the purpose of performing their duties during the
ordinary course of their work;
(2) A Qualified Auditor or outside counsel who is authorized to act
on behalf of:
(i) The Collective with respect to verification of the Licensee's
statement of account pursuant to this part; or
(ii) A Copyright Owner or Performer with respect to the
verification of royalty distributions pursuant to this part;
(3) Copyright Owners and Performers, including their designated
agents, whose works the Licensee used under the statutory licenses set
forth in 17 U.S.C. 112(e) and 114 by the Licensee whose Confidential
Information is being supplied, subject to an appropriate written
confidentiality agreement, and including those employees, agents,
consultants, and independent contractors of such Copyright Owners and
Performers and their designated agents, subject to an appropriate
written confidentiality agreement, who require access to the
Confidential Information to perform their duties during the ordinary
course of their work;
(4) Attorneys and other authorized agents of parties to proceedings
under 17 U.S.C. 112 and 114, acting under an appropriate protective
order.
(d) Safeguarding Confidential Information. The Collective and any
person authorized to receive Confidential Information from the
Collective must implement procedures to safeguard against unauthorized
access to or dissemination of Confidential Information using a
reasonable standard of care, but no less than the same degree of
security that the recipient uses to protect its own Confidential
Information or similarly sensitive information.
Sec. 380.56 Auditing payments and distributions.
(a) General. This section prescribes procedures by which any entity
entitled to receive payment or distribution of royalties may verify
payments or distributions by auditing the Payor. The Collective may
audit the Licensee's payments of royalties to the Collective, and a
Copyright Owner or Performer may audit the Collective's distributions
of royalties to the Copyright Owner or Performer. Nothing in this
section shall preclude a verifying entity and the Payor from agreeing
to verification methods in addition to or different from those set
forth in this section.
(b) Frequency of auditing. The verifying entity may conduct an
audit of each licensee only once a year for any or all of the prior
three calendar years. A verifying entity may not audit records for any
calendar year more than once.
(c) Notice of intent to audit. The verifying entity must file with
the Copyright Royalty Judges a notice of intent to audit the Payor,
which notice the Judges must publish in the Federal Register within 30
days of the filing of the notice. Simultaneously with the filing of the
notice, the verifying entity must deliver a copy to the Payor.
(d) The audit. The audit must be conducted during regular business
hours by a Qualified Auditor who is not retained on a contingency fee
basis and is identified in the notice. The auditor shall determine the
accuracy of royalty payments or distributions, including whether an
underpayment or overpayment of royalties was made. An audit of books
and records, including underlying paperwork, performed in the ordinary
course of business according to generally accepted auditing standards
by a Qualified Auditor, shall serve as an acceptable verification
procedure for all parties with respect to the information that is
within the scope of the audit.
(e) Access to third-party records for audit purposes. The Payor
must use commercially reasonable efforts to obtain or to provide access
to any relevant books and records maintained by third parties for the
purpose of the audit.
(f) Duty of auditor to consult. The auditor must produce a written
report to the verifying entity. Before rendering the report, unless the
auditor has a reasonable basis to suspect fraud on the part of the
Payor, the disclosure of which would, in the reasonable opinion of the
auditor, prejudice any investigation of the suspected fraud, the
auditor must review tentative written findings of the audit with the
appropriate agent or employee of the Payor in order to remedy any
factual errors and clarify any issues relating to the audit; Provided
that an appropriate agent or employee of the Payor reasonably
cooperates with the auditor to remedy promptly any factual errors or
clarify any issues raised by the audit. The auditor must include in the
written report information concerning the cooperation or the lack
thereof of the employee or agent.
(g) Audit results; underpayment or overpayment of royalties. If the
auditor determines the Payor underpaid royalties, the Payor shall remit
the amount of any underpayment determined by the auditor to the
verifying entity, together with interest at the rate specified in Sec.
380.2(d). In the absence of mutually-agreed payment terms, which may,
but need not, include installment payments, the Payor shall remit
promptly to the verifying entity the entire amount of the underpayment
determined by the auditor. If the auditor determines the Payor overpaid
royalties, however, the verifying entity shall not be required to remit
the amount of any overpayment to the Payor, and the Payor shall not
seek by any means to recoup, offset, or take a credit for the
overpayment, unless the Payor and the verifying entity have agreed
otherwise.
(h) Paying the costs of the audit. The verifying entity must pay
the cost of the verification procedure, unless the auditor determines
that there was a net underpayment (i.e., underpayments less any
overpayments) of 10% or more, in which case the Payor must bear the
reasonable costs of the verification procedure, in addition to paying
or distributing the amount of any underpayment.
(i) Retention of audit report. The verifying party must retain the
report of the audit for a period of not less than three years from the
date of issuance.
Dated: February 25, 2026.
Trevor Jefferson,
Interim Chief Copyright Royalty Judge.
David R. Strickler,
Copyright Royalty Judge.
Steve Ruwe,
Copyright Royalty Judge.
Approved by:
Robert R. Newlen,
Acting Librarian of Congress.
[FR Doc. 2026-04631 Filed 3-9-26; 8:45 am]
BILLING CODE 1410-72-P
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