Phonorecords V and the “39 Steps” Problem: Time for the CRB to Fix Streaming Mechanicals (opens in new tab)

The ongoing Phonorecords proceeding at the Copyright Royalty Board addresses the mechanical royalty rates for songwriters amidst complexities introduced by generative AI. The existing formula, referred to as “the 39 steps,” fails to accommodate AI-generated works, risking dilution of the royalty pool. The CRB is urged to clarify payment criteria and consider abandoning the outdated structure for simpler alternatives.