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Cover Song Licensing

Recording and distributing cover songs requires proper licensing. This guide explains what you need, how to get it, and how to stay compliant.

What is a Cover Song?

Definition

A cover song is your own recording of a song written by someone else. You perform and record it, but the underlying composition (melody and lyrics) belongs to the original songwriter.

Examples

TypeExampleLicense Needed?
CoverYour band recording “Yesterday” by The Beatles✓ Yes
OriginalYour own song you wroteNo
RemixModified version of another’s recordingDifferent license needed
SampleUsing part of another recordingDifferent license needed

What’s NOT a Cover

  • Remixes - Require master recording license
  • Samples - Require both master and publishing licenses
  • Interpolations - Require publishing license negotiation
  • Sound-alikes - May still need licenses if too similar

Why Licensing Matters

When you distribute a cover song:

  • The songwriter owns the composition
  • They deserve royalties when you use their work
  • A mechanical license grants you permission
  • Without it, you’re infringing copyright

Consequences of No License

RiskConsequence
TakedownPlatforms remove your release
Legal actionSongwriter can sue
Account issuesDistributor may terminate service
FinancialStatutory damages up to $150,000 per infringement

Types of Licenses

Mechanical License

What it covers: Reproducing and distributing the composition in audio format (streaming, downloads, CDs).

What it doesn’t cover: Sync (video), public performance, or master recording use.

Compulsory vs. Negotiated

TypeDescriptionWhen to Use
CompulsoryStandard rate, automatic rightStraightforward covers
NegotiatedCustom terms with publisherSignificant changes to song

The Compulsory License Right

In the US, once a song has been commercially released, anyone can record a cover by:

  1. Obtaining a mechanical license
  2. Paying the statutory rate
  3. Not changing the fundamental character of the song

How to Get a License

Option 1: LabelGrid Cover Song Service

If available, use our integrated licensing:

  1. When creating your release, indicate it’s a cover
  2. Search for the song
  3. We handle licensing automatically
  4. Cost is added to your release or deducted from royalties

Option 2: Third-Party Services

Popular licensing services:

ServiceDescription
DistroKid (if applicable)Built-in cover licensing
Easy Song LicensingDirect mechanical licenses
Songfile (Harry Fox Agency)Official HFA licensing
LimelightCover song licensing service

Option 3: Direct from Publisher

For complex situations:

  1. Identify the song’s publisher
  2. Contact their licensing department
  3. Request a mechanical license
  4. Negotiate terms
  5. Execute agreement

The Licensing Process

Step 1: Identify the Song

Gather information:

  • Song title
  • Original songwriter(s)
  • Publisher(s)
  • ISWC (if known)

Step 2: Find the Rights Holder

Search databases:

Step 3: Obtain the License

Through a service or directly:

  • Specify number of units/streams
  • Pay the required fee
  • Receive license documentation
  • Keep records

Step 4: Proper Crediting

On your release:

  • Credit original songwriter(s)
  • Include publisher information
  • Note it’s a cover in metadata

Mechanical Royalty Rates

US Statutory Rate (2024)

FormatRate
Physical/Downloads12.4¢ per copy (songs ≤5 min)
Physical/Downloads2.39¢ per minute (songs >5 min)
StreamingPercentage of revenue (complex formula)

How Rates Work

Example for a 4-minute cover:

  • 1,000 downloads = $124 in mechanical royalties
  • Streaming = portion of subscription/ad revenue

International Rates

Rates vary by country. Licensing services typically handle international rates automatically.


Crediting Cover Songs

Required Information

FieldExample
WritersJohn Lennon, Paul McCartney
PublishersSony/ATV Music Publishing
Original artistThe Beatles (in description)

Metadata Best Practices

Track title: Keep the original song title

  • ✓ “Yesterday”
  • ✗ “Yesterday (Cover)”

Writers field: Original songwriters only

  • ✓ “Lennon, McCartney”
  • ✗ “Your Name”

Notes/Description: Indicate it’s a cover

  • “Cover of ‘Yesterday’ originally by The Beatles”

What You Can and Can’t Change

Allowed Changes

Under compulsory license, you can:

  • Change the arrangement
  • Change the genre/style
  • Change the tempo
  • Change the instrumentation
  • Sing in your own voice/style

Not Allowed

You cannot:

  • Change the fundamental character
  • Alter lyrics substantially
  • Change the basic melody significantly
  • Combine with other copyrighted songs
  • Use for video/sync without additional license

When You Need Negotiated License

If you want to:

  • Significantly change lyrics
  • Create a parody
  • Create a medley with other songs
  • Use in a video/film
  • Make dramatic alterations

Cover Songs and Video

Important Distinction

A mechanical license covers audio only. Video requires a sync license.

ContentLicense Needed
Audio-only streaming (Spotify, Apple Music)Mechanical
YouTube videoMechanical + Sync
Music videoMechanical + Sync
Lyric videoMechanical + Sync

Getting Sync Rights

Sync licenses must be negotiated directly with the publisher. There’s no compulsory right for sync.

YouTube Workaround

YouTube’s Content ID system may:

  • Automatically claim your video
  • Allow it to stay up with ads
  • Revenue goes to rights holders
  • Check channel standing if claimed

Public Domain Songs

What’s Public Domain?

Songs whose copyright has expired (generally pre-1928 in the US). You don’t need a mechanical license for these.

Caveats

  • Arrangements may be copyrighted separately
  • Lyrics may have different copyright than melody
  • International copyright terms vary
  • Verify carefully before assuming public domain

Examples

Traditional songs like:

  • “Happy Birthday” (post-2016)
  • Classical compositions (original versions)
  • Traditional folk songs
  • Very old hymns

International Considerations

Territory Differences

RegionConsiderations
USCompulsory license available
UKMCPS handles licensing
EUVaries by country
AustraliaAMCOS handles licensing

Global Distribution

When distributing worldwide:

  • License should cover all territories
  • Some services handle this automatically
  • Check coverage with your licensing provider

Common Mistakes

Things to Avoid

MistakeWhy It’s a Problem
Not getting any licenseCopyright infringement
Crediting yourself as writerIncorrect metadata, legal issues
Assuming it’s “fair use”Fair use rarely applies to full covers
Changing lyrics without permissionMay invalidate compulsory license
Using for video without syncDifferent license required

”But I’ve Seen Others Do It”

  • They may have licenses you don’t see
  • They may be getting claimed/monetized
  • They may be risking takedowns
  • Don’t assume compliance based on others

Troubleshooting

Release Rejected for Cover

  1. Verify you have proper license
  2. Check songwriter/publisher credits
  3. Ensure license covers distribution method
  4. Provide license documentation if requested

Conflicting Publisher Information

  1. Check multiple databases
  2. Songs may have multiple publishers
  3. Publishers change over time
  4. Contact licensing service for help

Can’t Find Rights Holder

  1. Check all PRO databases
  2. Search music publisher directories
  3. Try the Harry Fox Agency
  4. Consider a different song

FAQ

”Do I need a license for a cover on YouTube only?”

Yes, technically you need both mechanical and sync licenses. However, YouTube’s Content ID often handles this by claiming the video and sharing revenue with rights holders.

”What about covers for TikTok/Instagram?”

These platforms have licensing agreements with publishers. Short clips are generally covered, but full songs may still need licenses for proper distribution.

”Can I cover a song that’s not yet released?”

No. The compulsory license only applies after the song has been commercially released by the rights holder.

”Do I keep any royalties from my cover?”

Yes. You earn royalties as the recording artist (master rights). Mechanical royalties go to songwriters. You keep your share of streaming revenue minus mechanical payments.


Checklist Before Releasing a Cover

  • Identified original songwriters
  • Found the publisher(s)
  • Obtained mechanical license
  • Credited songwriters correctly
  • Noted cover status in metadata
  • NOT credited yourself as writer
  • Kept fundamental character of song
  • If video: obtained sync license

Need Help?

If you have questions about cover song licensing, contact our support team. For complex licensing situations, consider consulting a music attorney.