Navigating Copyright Laws for Monetizing Cover Songs: A Comprehensive Guide

Introduction

When utilizing a cover of a song for a purpose that intends to generate revenue, it is crucial to understand the legal and copyright requirements. This guide delves into the necessary steps and factors to consider when ensuring compliance with copyright laws.

Monetizing Cover Songs: The Need for Permissions

If you plan to monetize a cover song, whether through an online video or any other medium, you need specific permissions. For a video, you must obtain approval from the songwriters and publishers, as well as the individuals who created the cover version. In most cases, you do not need permission from the original version's master owner. Producers, labels, or sometimes, the artist themselves, hold these rights.

Honestly, it's tricky to navigate the path to monetization. If you have the means, try. However, if budget is a concern, consider alternative methods such as a Patreon page for income or creating your original songs, which can provide some financial support.

Recording and Distributing Covers: The Requirement for Licenses

To record and distribute a cover song, even if it is free, you need a license. These can be acquired from either the publisher through the Harry Fox Agency (HFA) in New York City or directly from the U.S. Copyright Office.

Another required component is a performance rights organization, such as SoundExchange. For a CD, the royalty rate is 9.1 cents per disc pressed. For streaming, the rate is decided by the streaming service itself and passes through to the appropriate organization. Additionally, you must list the author's name, publisher's name, and performance rights organization's name on your CDs to ensure compliance.

Live Performances: Special Considerations

Live performances of cover songs generally do not require a license for the band, as venues typically hold the necessary performance rights from organizations like ASCAP and BMI. However, venues need to hold a license to legally perform cover songs. Bands are not legally obligated to get this license and are not responsible for venues' compliance with licensing laws. That said, if the organization (e.g., ASCAP, BMI) comes to a venue where a show is being performed, the act will be immediately canceled, and the venue will face fines for being unlicensed if they choose to continue without rectifying the situation.

It is important to note that the owner of the venue where the live performance is taking place does need a license, but typically this is already covered by their membership to ASCAP or BMI. If a band doesn't have the necessary live performance license, it's likely the venue has one that covers the bandwidth of all the acts performing there.

Conclusion

Monetizing a cover song involves a detailed understanding of complex copyright laws. It is essential to acquire the necessary permissions and licenses to avoid legal difficulties and to ensure that your material can be monetized successfully. By following these guidelines, YouTubers and other creators can navigate the intricate world of cover songs and legal permissions with confidence.