"In point of fact, all radio stations--broadcast, satellite, and internet, pay licensing fees for the music that the use--except for" pirate stations", which have that name because they are illegal"

I don't know if we're talking about the same thing. I'm not sure what you mean by "licensing fees". I was thinking of publishing royalties – musicians receiving a small amount of money every time their music is played. That's what I'm talking about anyway. I know that all radio stations are SUPPOSED to pay publishing royalties for all the music that they use. But I'd be amazed if anything more than a tiny minority of college radio stations, internet radio stations, hospital radio, local community stations etc paid them in practice. All those internet radio stations that don't have advertising – many of which are just run by one or two guys in their college dorms – are you really saying they are scrupulously paying all the musicians royalties? With what money? With what time? One thing I can say is that a lot of musician friends of mine have had airplay on various internet radio stations and college radio stations (I have too once or twice) – they've never received any money from them.
For another thing I know for a fact that one particular legal radio station – one which I happen to think is the best broadcast radio station – most certainly doesn't. They can't afford to. They don't make any kind of a profit. They rely exclusively on volunteers and donations to exist. They have a no-advertising policy, which I think is a good thing. They don't pay royalties.

We might be talking at cross purposes here – I don't know all that much about all the terminology.