Legal issues: When you need permission

When do you need the copyright holder's permission?

Generally, as long as you are not making money off of a cover and are giving the original artist credit, there can be no legal ramifications for covering a song. However, if the song is played at a concert, bar, or other venue where an admissions fee is paid, things can sometimes get dicey. It is always best to obtain permission from the original artist to play things safe, but you still might be surprised regarding how strict The American Society of Composers, Authors, and Publishers (ASCAP), may seem.

This is by no means an exhaustive list, but according to the ASCAP, you must get permission from the copyright holder to make copies of or re-record an existing song. Anyone interested in distributing physical copies or a cover song should therefore seek the original artist's permission. In addition, whenever another artist's music is used as part of training seminars, conventions, or other commercial or business presentations, permission is required, even if a cover is just played as a fun way to break up sessions.

Business owners need to be especially cognitive of copyright laws, even independent of covering songs. Most people are aware that movies must seek permission to use an artist's song. However, many may not know that the music you listen to when you call a company and are "on hold" is considered a public performance, and therefore requires permission from ASCAP or from the copyright owner. Copyright law is pretty strict, and it is much better to pay the initial fees than deal with subsequent lawsuits.

So how much does it cost to obtain permission to cover a song?

In short, it depends. However, the federal government controls how much individuals covering an original song must pay artists for physical recordings (such as CDs) and permanent digital downloads (such as distributing a song on iTunes). Currently, individuals must pay 9.1 cents per copy for songs that are less than or equal to 5 minutes. For every minute beyond this 5 minute mark, the additional charge is 1.75 cents. So, if you want to charge iTunes users $1 to download your cover song, you will make, at most, 90.9 cents for that song. For a song that is, say 10 minutes, you are looking at 82.15 cents. And of course this does not include the iTunes fees. For any ring tone enthusiasts, the statutory mechanical royalty rate for ringtones is 24 cents per copy.

While the prices may seem too high, too low, or simply arbitrary, it is important to keep in mind the purpose of these costs. The costs are not meant to be prohibitive; with high costs amateur artists would be unable to produce any covers at all. However, the original artist should be compensated for his or her work, especially in the case of a cover making significant profit off of this individual's labor. Some individuals make their living off of music, and the average professional musician may not be making as much money as you think.