The question of royalties for covering a song is common among musicians, content creators, and venues in the United States. This guide explains when royalties are required, who pays them, and how to legally cover a song without facing penalties. Understanding these licenses helps protect rights holders and ensures creators are compensated for their work.
How Cover Songs Are Regulated In the United States
In the U.S., covering a song involves two primary types of rights: mechanical rights and performance rights. Mechanical rights cover the reproduction and distribution of a musical work, such as recording a cover on a CD, streaming it, or selling a digital download. Performance rights cover the public performance of a song, whether live on stage or streamed on a platform where the public can hear it.
Mechanical Royalties: What Covers Pay And To Whom
When a cover is reproduced and distributed, the creator of the song earns mechanical royalties. In practice, this means:
- Public performances vs. mechanical licenses: Performing a cover live does not require a new mechanical license, but the underlying song’s rights may be managed by a publisher who collects performance royalties on its behalf.
- Online distribution: Releasing a cover recording online (streaming, download, or physical release) triggers mechanical royalties. In the U.S., publishers or licensing agencies collect these royalties and distribute them to the songwriters and music publishers.
- Licensing agencies: The American Society of Composers, Authors and Publishers (ASCAP), Broadcast Music, Inc. (BMI), and SESAC handle performance royalties, while the Harry Fox Agency (HFA) and similar publishers handle mechanical licenses.
Do You Need A Mechanical License To Cover A Song?
Yes, if a cover song will be reproduced and distributed in any form beyond a private performance. Examples include uploading a cover to a video platform, releasing a cover as a single, or selling a cover on a CD. Some exceptions exist for very small, “non-commercial” releases, but these are not universal and can carry risk. When in doubt, obtain a mechanical license to stay compliant.
What About Live Performances?
Live performances of cover songs in venues typically require licensing for public performance, which is commonly managed by PROs like ASCAP, BMI, or SESAC. In many cases, venues already hold blanket licenses, so individual performers may not need separate arrangements for on-stage performances. However, venues or streaming platforms broadcasting live performances may still owe performance royalties to songwriters via PROs.
The Costs Of Licensing A Cover
Costs depend on the number of copies distributed or streams generated. Typical considerations include:
- Mechanical license fees: In the U.S., mechanical royalties for songs are often a statutory rate (currently set around 9.1 cents per physical or digital copy for songs up to 5 minutes) or a statutory rate for a 1,500-time-year cap, depending on the publisher and the distribution method. For featured performances or longer songs, rates can vary.
- Performance royalties: Paid to songwriters whenever a cover is publicly performed. For digital platforms, these are collected by PROs and distributed to rights holders.
- Sync licenses: If a cover is used in a video with imagery (e.g., a cover in a YouTube video), a synchronization license is required. This can be a separate, negotiated license with the publisher and songwriters and is often the most expensive component.
How To Legally Cover A Song: Step By Step
Following the right steps minimizes legal risk and ensures creators are compensated. The process typically includes:
- Identify the song’s rights holders: Determine the songwriters and music publishers through performing rights organizations (PROs) and the song’s copyright information.
- Obtain a mechanical license: Apply for a mechanical license through a licensing agent (such as HFA) or directly via a publisher. This license covers the reproduction and distribution of the recording.
- Consider a synchronization license if using the cover in video content with visuals. This is negotiated with the copyright holder and can involve fees and terms.
- Respect performance rights: If the cover is performed publicly or broadcast, ensure the venue or platform has appropriate PRO licenses for public performance royalties.
- Document everything: Maintain records of licenses, terms, and payment receipts to avoid disputes.
Common Scenarios And Their Licensing Needs
To clarify real-world situations:
- Cover on YouTube: Typically requires a mechanical license for the audio recording and a sync license if visuals are used. Some platforms help with licensing, but users should verify the rights and provide necessary permissions.
- Streaming a cover on Spotify: Requires a mechanical license; the streaming service will handle per-stream royalties to the rights holders as part of licensing agreements with PROs and publishers.
- Live cover at a cafe: Usually covered by the venue’s PRO license. The performer generally does not need separate mechanical licenses for on-site performances.
- Cover on a physical CD or digital download: Requires a mechanical license to reproduce and distribute the recording.
Public Domain And Other Exceptions
Works that are in the public domain can be performed and distributed without licensing obligations. However, many classic songs are still under copyright, so verification is essential. Some arrangements of public-domain works may still require licenses for new lyrics or unique arrangements.
Common Pitfalls To Avoid
Avoid assuming that a cover is exempt from royalties just because it is a remake of a familiar song. Even if you learn and perform a cover, licensing remains essential for distribution and public performance. Failing to secure licenses can lead to legal action, fines, or takedowns of content on platforms.
Practical Tips For Independent Artists
Independent creators can manage licensing efficiently by:
- Use licensed distributors who handle mechanical licensing for digital releases.
- Check platform policies for licensing requirements and ensure the platform has appropriate rights management in place.
- Budget for licenses in advance of a release or video project to avoid last-minute delays or fees.
- Consult a rights professional if the project involves complex rights, such as multiple covers or cross-border distribution.
Key Takeaways: Covering a song in the United States typically requires mechanical licenses for reproduction and distribution and performance licenses for public performances. Sync licenses apply if the cover is used in video content with visuals. Costs vary by distribution method and rights held by the songwriters and publishers. When in doubt, obtain the necessary licenses to ensure compliance and fair compensation for original creators.