If you listen to the radio in Europe, every song played generates royalty money for two groups: the people who wrote the song, and the artists who sang and recorded it.
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. The performing artists, backup singers, and studio musicians receive zero dollars from traditional radio play.
Now, a major trade battle has erupted across the Atlantic over this double standard.
The Two-Way Street Problem
For years, European radio stations have paid roughly $300 million a year in royalties to American performers whenever their songs played on European radio.
However, when European artists get played on American AM/FM radio, U.S. stations pay those European artists nothing.
European lawmakers are now saying enough is enough. The European Commission is proposing a rule called material reciprocity: Europe will only pay radio royalties to artists from countries that pay European artists back.
If this rule passes, American musicians will stop receiving royalty checks from European radio play until the United States fixes its own laws.
Why Hasn’t the U.S. Fixed This?
The reason the U.S. hasn’t closed this loophole comes down to the corporate radio lobby in Washington, D.C.
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.
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.
What Happens Next?
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.
Led by KISS bassist Gene Simmons, the letter includes iconic multimillionaire stars across every genre:
- Pop & R&B: Mariah Carey, Barbra Streisand, Celine Dion, P!nk, Cyndi Lauper, Boyz II Men, and Gloria Estefan.
- Rock & Classic Icons: Aerosmith, Def Leppard, Duran Duran, Billy Idol, Jackson Browne, Carole King, James Taylor, and R.E.M.
- Country & Modern Stars: Jason Aldean, Jelly Roll, Darius Rucker, and Lee Greenwood.
This bill would force U.S. corporate radio stations to start paying performers just like European radio does. Passing the law would end the double standard, ensure artists get paid at home, and prevent Europe from blocking American musicians from receiving their European radio royalties.
