Do traditional so-called terrestrial radio stations (AM/FM) have to pay the 
same royalties for over-the-air broadcasting? 
 
Not at this time. With every sound recording, there are two copyrights -- one for 
the musical composition (the notes and lyrics) and one for the sound recording 
(the performance of the song by performers).  When radio stations broadcast 
over-the-air, they do not pay royalties to record companies and performers; they 
only pay a royalty to the person or company who hold the copyright to the 
composition (i.e., the songwriter or the music publisher).  So if an FM station 
plays Christina Aguilera’s “Beautiful” or Diana Ross’ “Ain’t No Moutain High 
Enough,” neither of these artists gets a dime in royalties because neither wrote 
her respective song; only the songwriters would get paid.  If either of these tracks
is played on satellite radio or on an internet webcast, however, both Ross and 
Aguilera (as performers) would be compensated along with the songwriters.