{"id":4377,"date":"2026-07-28T18:57:50","date_gmt":"2026-07-28T16:57:50","guid":{"rendered":"https:\/\/stereodaily.com\/?p=4377"},"modified":"2026-07-28T19:01:37","modified_gmt":"2026-07-28T17:01:37","slug":"the-us-radio-loophole-why-europe-is-threatening-to-cut-off-millions-in-music-royalties","status":"publish","type":"post","link":"https:\/\/stereodaily.com\/sv\/the-us-radio-loophole-why-europe-is-threatening-to-cut-off-millions-in-music-royalties\/","title":{"rendered":"Europe Demands Music Fairness: Why the EU Is Closing the Loophole on Unfair U.S. Radio Royalties"},"content":{"rendered":"\n

If you listen to the radio in Europe, every song played generates royalty money for two groups: the people who wrote<\/strong> the song, and the artists who sang and recorded<\/strong> it.<\/p>\n\n\n\n

In the United States, things work very differently. Due to an old loophole in U.S. copyright law, American AM\/FM radio stations pay only the songwriters<\/strong>. The performing artists, backup singers, and studio musicians receive zero dollars from traditional radio play.<\/p>\n\n\n\n

Now, a major trade battle has erupted across the Atlantic over this double standard.<\/p>\n\n\n\n

The Two-Way Street Problem<\/h2>\n\n\n\n

For years, European radio stations have paid roughly $300 million a year<\/strong> in royalties to American performers whenever their songs played on European radio.<\/p>\n\n\n\n

However, when European artists get played on American AM\/FM radio, U.S. stations pay those European artists nothing<\/strong>. <\/p>\n\n\n\n

European lawmakers are now saying enough is enough. The European Commission is proposing a rule called material reciprocity<\/strong>: Europe will only pay radio royalties to artists from countries that pay European artists back.<\/p>\n\n\n\n

If this rule passes, American musicians will stop receiving royalty checks from European radio play until the United States fixes its own laws.<\/p>\n\n\n\n

Why Hasn’t the U.S. Fixed This?<\/h2>\n\n\n\n

The reason the U.S. hasn’t closed this loophole comes down to the corporate radio lobby in Washington, D.C.<\/p>\n\n\n\n

Big American broadcast companies argue that playing music on the radio acts as “free promotion” for the artists, so the radio stations shouldn’t have to pay to use the recordings.<\/p>\n\n\n\n

While streaming platforms like Spotify, Apple Music, and YouTube pay performing artists, traditional AM\/FM radio in the U.S. remains the only commercial platform exempt from paying performers.<\/p>\n\n\n\n

What Happens Next?<\/h2>\n\n\n\n

To keep their European royalty checks flowing, a group of 58 wealthy, famous American recording artists sent a formal letter to Congressional leaders urging them to pass the American Music Fairness Act<\/strong>.<\/sup><\/p>\n\n\n\n

Led by KISS bassist Gene Simmons<\/strong>, the letter includes iconic multimillionaire stars across every genre<\/a>:<\/sup><\/p>\n\n\n\n