this is pretty much what 'textmonkey" said, but more detailed
Copyright, Cover Songs, and Loops
Now that you know all the basics about copyright and performance societies, you may be wondering about two of the basic questions concerning music – one that’s been around a long, long time, and one that dates back to the 80s. Namely:
Can I play cover songs when I play out live? Aren’t they copyrighted by somebody else? And, if so, can I also record a cover song on my album?
Can I use samples and loops in my recordings?
Here are the answers. Well, at least, the best answers we can give since, once again, this involves the law, where we might need more than three chords and the truth.
1. When playing live, you can basically play any cover song you want.
By definition, cover songs are owned by someone else. You may wonder how you have the right to play this music anywhere. Most bars probably didn't seem worried when you covered "Freebird," even though they can probably guess that you didn't write it.
Playing any music owned by others, whether live or on the radio, is covered by the "performance right" that the copyright owner has. The performance right is simply just one of the many copyrights a copyright owner has. The law is written such that no one can stop anyone from performing their music. That's right. Lynrd Skynrd can't stop you from playing "Freebird" even though they, and everyone else in the room, want to. Even if you play it on a kazoo with a reggae beat - they still can't stop you. The owner does have a right to get compensated for it, though.
Yes, thanks to performance societies, you can play any cover song you want live at any venue. Performance societies collect money from the place you’re playing for the rights to play anything in their catalog. So if you play "Freebird" at Benny's Burger Bar, it’s Benny’s responsibility to pay the licensing fee (usually a global, monthly fee) to the performance society for the right to have you play that song in his establishment. Benny also has to pay for the radio station playing songs at the bar, the jukebox in the corner, and the music that goes over the phone when he puts your booker on hold once again. These all count as "performances" in which copyright owners are owed.
Here's the goofy part: if Benny didn't pay the licensing fee and he gets busted, then he - and you - are liable. Now, being liable and actually being sued is a whole different thing. It is most likely that they will go after Benny and not all the bands that played at Benny's Burger Bar since (a) he's liable, (b) he should have known better, and (c) they know exactly where he is.
Of course, if you discover that the bar or venue is not paying a licensing fee, then ASCAP, BMI, and SESAC probably say somewhere on their website that they want to know. These societies have gotten increasingly aggressive in recent years. One of the more amusing examples is when they strong-armed the Girl Scouts to pay up because of their campfire songs, and songs like "Happy Birthday" which is still owned by someone. The Girl Scouts were using their own birthday song for a while until this got resolved. The main thing is: you probably won't owe anyone for your performance of a cover song. They are well aware that it's not worth it to sue indie bands: we're poor.
2. If you have covers on an album, you have to pay fees.
There are many copyright issues and fees involved with recording a cover song and placing it on your album. However, it certainly can be done. You just need to be careful and diligent in doing this legally. The following talks about what happens when you record a cover song and do not change the music or lyrics (there's a whole different set of copyright laws that come into play when you start changing things.)
Typically you need to ask the original copyright owner of the cover song for permission to include the song on your album. However, in this one case – the recording of a published copyrighted song not owned by you – you need not even ask. You simply just have to pay them. How much? Well, at the time this was written, the most they can ever charge you for the use of their song is 8.5 cents. This amount is set by law and is known as the statutory rate. Unfortunately, you'll have to pay this statutory amount for each copy of the LP, tape, or CD of the song - whether it's sold or not. So, it can add up. Plus, there’s the whole added headache of accounting, never a strong suit for musicians. Of course, it could pay off to contact the copyright owner. After all, they may decide to grant you permission to record and sell the song for free or they may give you a better deal than 8.5 cents. They're here to do business, and asking for a deal is a good idea if you want to include covers.
What if in contacting them they demand you don't record their song, revoke all permissions, and threaten to sue you? Ah, don't worry about it. US copyright law guarantees that even if they hate you, they are actually legally required to allow you record any published song of theirs you want. Of course, they'll probably charge you the maximum statutory rate, but at least you get to record their precious song.
If you’re thinking of recording a cover song, a very helpful and detailed guide as to the correct steps you need to take and forms you need to fill out is here.
3. When recording an album, adding loops and samples from other people’s recordings requires the payment of fees.
If you are the type of band that uses samples in your songs, you are at risk of violating a copyright owner's right in a loop or sample if you do not have permission to do so. This is true even if you substantially modify it. Courts have decided that a band that uses a sample or loop on a recording in an album is similar to a band that records a cover song on an album. In other words, you have to go through the same steps as #2 above to "clear the sample." Obviously, unlike recording a cover song, which would require one permission-one fee, using multiple loops typically requires multiple permissions with multiple copyright owners and multiple fees. Plus, since you’re using an actual recording as well as a snippet of notes and/or lyrics that are copyrighted, you now have to worry about who owns the rights in the recording (Form SR), as well as who owns the rights in the song itself (Form PA.) This is known in the legal world as “a legal nightmare.”
Solutions to this nightmare include:
Recording and creating your own loops. As copyright owner of your own loops, you can give yourself permission to use the loops royalty-free, if you're feeling generous that day.
Use loops created by bands and individuals that license their music under the Creative Commons licenses for sampling. Believe it or not, there is a large group of loop-creators who believe in sharing their loops royalty-free. Of course, you won’t necessarily find their loops on sale at your local music supply chain. For more info on where to find these individuals, go to [
www.creativecommons.org].
Seek out the copyright owners and pay the requisite fees.
Risk it and cross your fingers.
[
www.beatnikturtle.com]