Radio stations pay royalties to songwriters and publishers, but why aren't the performing artists and record companies getting paid too?

Currently, there is not a law that requires radio stations to pay royalties to performing artists (performers) or record label companies (labels). However, a proposed Fair Play Fair Pay Act is underway to seek authorization to require [terrestrial] radio stations [not internet radio stations] to pay royalties to performers and labels. As of now, radio stations are required by law to pay royalties to only songwriters and/or publishers. The controversy in this issue is whether consideration should even be given to pay performers and label companies.

I believe it would only be fair to do so. If performers/labels receive royalties for taped and live performances, television broadcastings, and/or social media forums, then they should also be compensated for [terrestrial] radio play as well.

The fact that radio stations have not been required to pay performers and labels pinpoint another loophole in intellectual property reformation. Because of the rapid evolution of technology, many laws that should regulate intellectual property have not been established yet. With that being said, I see radio stations, both terrestrial and internet radio, as being similar in nature. I see both as similiar to companies like Pandora, Spotify, Songza, etc. Those companies license songs and are required to pay royalties to all the right holders including performers and labels. Likewise, [terrestrial] radio stations should be required to do so too.

According to an article by the Future of Music Coalition, this issue demonstrates a high lack of “…reciprocal rights.” How is it that radio stations have been able to get away with this? I would contribute such absence of regulation to the rapid evolution of intellectual property, but this issue should have been regulated since “years ago.” 

Additionally, it is interesting that when it was determined that internet radio stations were required to pay royalties to performers and labels, it should have also been determined, at that time, for terrestrial  stations as well. I look forward to the verdict of the court’s decision to the proposed Fair Play Fair Pay Act and I will provide a follow up blog on that case.