Cover Song

In-Depth Explanation

A cover song is a new recording of a previously released musical composition, performed by someone other than the original recording artist. Under U.S. law, once a song has been commercially released, anyone can record and distribute a cover without asking permission by obtaining a compulsory mechanical license and paying the statutory rate set by the Copyright Royalty Board.

How Cover Songs Work

The concept of a "cover song" is not a legal term. It is an industry term for a specific scenario: Artist B records their own version of a song originally written and released by Artist A. What makes this possible without Artist A's permission is the compulsory license provision in Section 115 of the U.S. Copyright Act.

The Compulsory License

Once a songwriter publishes a song (makes it available to the public in phonorecords), anyone can record and distribute their own version. The songwriter cannot say no. The only requirements are:

1. The cover version must not fundamentally change the melody or basic character of the original song. If you alter the melody, change the lyrics, or add new material, you have created a derivative work, which requires direct permission from the copyright owner.
2. You must file a Notice of Intention with the copyright owner before or within 30 days of distributing the cover.
3. You must pay the statutory mechanical royalty rate for every copy made, sold, or streamed.

This is what "compulsory" means: the license is available as a matter of right. No negotiation is needed. You follow the statutory process and pay the statutory rate.

What a Cover Song Is Not

A cover song is not the same as:

• A remix: A remix uses the original master recording, altered with new production. This requires both a master use license and a mechanical license, both negotiated directly with the rightsholders.
• A sample: A sample takes a portion of the original master recording and embeds it in a new work. This requires a master use license (from the label) and a sample clearance (from the publisher), both negotiated and potentially denied.
• A parody: A parody changes the lyrics to comment on or mock the original. Parody may qualify as fair use, but the analysis is case-by-case. Parody is not covered by the compulsory license.
• A translation: Translating lyrics into another language creates a derivative work. This requires direct permission from the publisher, not a compulsory license.

Physical vs. Streaming

For physical formats (CDs, vinyl, cassettes) and permanent downloads (iTunes, Bandcamp), you must secure the mechanical license and pay royalties upfront before manufacturing or selling. The easiest method is using the Harry Fox Agency Songfile service or a similar licensing platform.

For interactive streaming (Spotify, Apple Music, Amazon Music), the process is simpler. When you upload a cover through a digital distributor like DistroKid or TuneCore, you check a box indicating it is a cover. The distributor charges a small annual fee (around $12). Under the Music Modernization Act of 2018, streaming platforms secure blanket mechanical licenses through The Mechanical Licensing Collective (The MLC) and pay mechanical royalties directly to publishers.

Real-World Example

An independent artist wants to cover a 3-minute song by a well-known band and press 1,000 vinyl copies. As of 2026, the statutory mechanical rate is 13.1 cents per song for tracks five minutes or shorter.

Calculation: 1,000 copies x $0.131 = $131.00 in mechanical royalties.

The artist pays this amount through HFA Songfile before pressing the records. The $131 goes to the original songwriter's publisher. The artist keeps all revenue from selling the vinyl and all master-side streaming revenue, but the original songwriter receives mechanical royalties on every copy.

For the same cover on streaming, the artist pays nothing upfront. Their distributor handles the licensing, and the streaming platform pays mechanical royalties to The MLC, which distributes them to the publisher based on stream counts.

If the artist had changed the lyrics or added a new verse, the compulsory license would not apply. They would need to contact the publisher directly and negotiate a derivative work license, which the publisher can refuse.

Why It Matters for Independent Artists

Cover songs are one of the fastest ways for independent artists to reach new audiences. A well-produced cover can appear in search results and algorithmic playlists alongside the original, exposing you to listeners who would never find your original music.

1. Always go through the proper licensing process. Releasing a cover without a mechanical license is copyright infringement. The publisher can issue a takedown notice, and you may face statutory damages of up to $150,000 per song.

2. Use a distributor that handles cover licensing. DistroKid, TuneCore, and CD Baby all offer cover song licensing for a small annual fee. Check the box, pay the fee, and let them handle the paperwork.

3. Do not alter the song beyond what the compulsory license allows. Changing the melody, lyrics, or basic character of the song turns it into a derivative work. You need direct permission for that, and the publisher can say no.

4. Budget for mechanical royalties on physical releases. At 13.1 cents per song in 2026, a 10-track cover album pressed at 1,000 copies costs $1,310 in mechanical royalties upfront. Factor this into your manufacturing budget.

5. Register your cover with The MLC if you self-publish. If you own the composition (you wrote it) and someone else covers it, The MLC collects streaming mechanicals on your behalf. Registration is free.

Use our Publishing Royalty Split Calculator to calculate mechanical royalty costs for cover projects. Read our guide on mechanical royalties explained and our overview of music licensing agreements for more detail.

Related Terms

• Mechanical License - The legal mechanism that makes cover songs possible
• Statutory Rate - The per-copy royalty rate you must pay for a cover
• Mechanical Royalties - The payment type generated by cover song distribution
• Composition - The underlying work being covered
• Derivative Work - What a cover becomes if you alter the melody or lyrics