Question about Bootlegs, Covers, and Royalties

OnWis97

I am curious about something.

First, correct me if I am wrong, but I think an artist can cover someone at a concert and not have to worry about copyright and royalties. However, to sell recordings of covers, then there needs to be agreement with the owner of the song. Correct?

So (if I am correct above) how does PJ cover such a wide array of songs and get them onto the bootlegs? Is there something different about the rules for official bootlegs (or live recordings) as opposed to stuido LPs? Do they actually have agreements with every song they play? Are there some missing from official bootlegs (none that I own, as far as I know)? I am sure they would easily have perpetual agreements for songs like Crazy Mary or RITFW. But for any of the ton of random covers?

Or are they just winging it? If so, I recommend never covering (or even doing a Daughter tag of) Metallica. They like to sue.

I've just been curious for a while...

23scidoo

nice question..

CopperTom

An original song is a great example of copyrighted material. A cover song is a new performance of an original song or recording, like what we see on popular TV shows “Glee” and “American Idol.”

So, if your band wants to cover another artist's song, what do you have to do? The answer depends on whether you want to simply play the song live, or record it. 

Performing a Live Cover Version of Another Artist's Song

According to SESAC, one of the three big Performing Rights Organizations (PRO) in the US, “Anyone who plays copyrighted music in a public establishment is required to obtain advanced permission from the copyright owner, or their representative.” A PRO, sometimes referred to as Performing Rights Society (PRS), is a licensing agent for songwriters and their music publishing companies, and it coordinates royalties for the appropriate parties. (Amazingly, “SESAC” is not an acronym—the name doesn't stand for anything.)

However, the responsibility for procuring this license usually falls on the venue or organization hosting the band. Owners of performance venues purchase license agreements from one or all of the big PROs. In addition to SESAC, the American Society of Composers, Authors and Publishers (ASCAP) and Broadcast Music, Inc. (BMI) also coordinate performance licensing for such venues.

So, if you perform cover songs at weddings or nightclubs, the venue would need to have the appropriate licensing agreement or face legal exposure. (The same obviously goes for venues hosting tribute bands—bands that cover many songs by the same bands.)

Each of the three PROs covers certain artists, so the entity one goes to depends on the songs being performed. Many locations get performance rights from more than one PRO, as artists whose work might be performed are covered by different licensing agents.

The rates a venue can expect to pay for performance rights can vary: costs depend on type of venue, type of performance, frequency of performances, entrance fees, and other factors. Certain venues are exempt from royalty requirements altogether: churches and other places of worship often qualify for exemption, as can non-profit educational venues (so long as the songs are part of an in-person teaching activity). Anyone considering whether a performance will be exempt should check with the appropriate PRO in advance.

Recording Cover Songs

A different situation is presented if your band, instead of simply wanting to cover a song live, decides it wants to record a cover version of another artist's song. If you're interested in a license for recording or selling a copyrighted song, you'll need what's called a mechanical license—a license that allows one artist to create a new version of another's copyrighted song. A mechanical license is so named because the author of the original song does not have to give his or her permission for you to get one—it's “mechanical.” The Harry Fox Agency is the largest agency in the music business for such licenses, coordinating the royalties between the various constituents (music publishers, performers, etc.). Note that while you are guaranteed a mechanical license for the asking (and paying), the one thing that the original artist can block is another artist releasing the first recording of that song—under certain circumstances, that artist can even block his or her own record company from doing so!

The Take-Away

It's a thrill to perform a song you've long held dear to your heart. But if that song is copyrighted and you're performing it at a venue that makes money, make sure they have the right licensing agreement squared away before you get on stage. And if you want to record that homage to your favorite power ballad, remember that it's you who is on the hook for the licensing fees.

For more information:

The American Society of Composers, Authors and Publishers (ASCAP)

Broadcast Music, Inc.

The Harry Fox Agency

SESAC, Inc.

CopperTom

Based on the length of each song and the number of units you plan to sell, songfile.com then computes a fee based upon the statutory mechanical royalty rate-the money collected for each sale of your cover version that goes directly to the song's writer and publisher (often split 50/50). Currently (January 1, 2004 to December 31, 2005), the "statutory mechanical royalty rate" is:

8.50 Cents for songs 5 minutes or less
1.65 Cents per minute or fraction thereof over 5 minutes.

OnWis97

Interesting...

Thanks!

karmadefect

Wow, never really asked that question.
Certainly didn't think of the answer.
Interesting reading this.

WhatYouTaughtMe

I wonder if this is the biggest reason there is no Ed solo boots. He does play a lot of covers at times.

HughFreakingDillon

WhatYouTaughtMe said:

I wonder if this is the biggest reason there is no Ed solo boots. He does play a lot of covers at times.

don't think it's the biggest reason (if it's a reason at all-I'm sure the revenue of the sale of his boots would more than cover the royalties he would have to pay out). he has said he wants those performances to be between him and the audience, there and now, and only there and now.

FrankieG

Does this apply to youtube videos of covered songs?

HughFreakingDillon

FrankieG said:

Does this apply to youtube videos of covered songs?

no, not unless that person is getting paid for posting it.