This page has information on covering a song, as well as sampling a piece of a song. There is a FAQ with some commonly asked questions halfway down this page, and there are some helpful links at the bottom of the page.

If you wish to cover another artist's song on your CD, you MUST obtain what is called a mechanical license for the song. The average cost to do this is about 8 cents a song per CD, and you have to pay the license based on units pressed, not on units sold. Do you still have to pay the fees on CDs given away for free? Sorry to say the answer is "Yes!" Royalties are based on gross units distributed, not on sales.

Once you obtain your license, you submit the contract to the manufacturer. This license DOES NOT include rights to reprint lyrics or to print sheet music. For these rights you must contact the publisher(s) directly.

How do I obtain a license you may ask? You can contact the publisher of the music. Any CD published in the U.S. and many other countries should have the name of the publisher of the song(s). You may contact them direct and negotiate a licensing fee with them. You can explain that you're an indie band and only wish to press a small number of units... you can say you're from a small indie label and really cant afford to pay a lot of money for it, etc. Good luck! Who knows, they might let you have the song for cheaper than the normal rate. (about .08¢ a song per unit pressed, not per unit sold).

Probably the easiest way to license a song is via the Harry Fox Agency.
They represent music publishers and are authorized to issue you a license and collect and distribute royalties for mechanical licenses. They do all the negotiating for you, and have the rights to many songs already and have permission to license them to you for the statuatory rate. If you know the song has been covered before, chances are it's in their database. You can do everything online if you have an account, you can obtain your license in many cases in as little as a week. If you don't have an account if will take 4-8 weeks to obtain your license by mail or fax.

Wherever you obtain your license, they will tell you the information that must accompany the song title. For instance, if you were to license a song as recorded by 80s superstars, WHAM!, you would have to put the name of the composer, followed by the publisher:

"Last Christmas" written by George Michael for Sony/ Columbia publishing.

When in doubt, you should contact the publisher.

Frequently Asked Questions:

My license states it's limited to 500 copies... do I need to apply for a new license if my distribution goes beyond 500 units? Yes, but the good news is you can pay by card over the internet and don't have to wait the 1-8 weeks to obtain the new license.

What happens if I only want to press or give away 100 units? The minimum payment for the statuatory rate is for 500 units. Sorry!

Am I free to use short segments of sampled material. (nothing over 10 notes, 6 seconds, 4 bars, etc...)
Regardless of the time, you are not allowed to use copyrighted material without first obtaining proper authorization. No matter how short the sampled segment is, you must obtain permission from the copyright owner in all cases.
 
Do I need to obtain licensing for my recordings since I'm giving them away for free and not selling them for profit?
Yes, regardless of use, you will always need to get prior clearance to use copyrighted material in your project.
 
Am I free to use samples and recordings of material that is in the public domain?
Sorry, you CANNOT sample someone else's recording of public domain material without obtaining their permission. While the musical score and lyrics may be in the public domain (and thus free to use), the actual sound recording of that material is protected by copyright laws. You CAN, however, freely record your own version of material that is in the public domain.

Do I need to obtain a license in order to publicly perform or broadcast a piece of copyrighted music?
To publicly perform copyright-protected music, whether live or recorded, permission for the performance rights must be obtained. This may be done by contacting the appropriate licensing organization (i.e.ASCAP, BMI, SESAC, etc.).

The following are some helpful links:

More Information on a Master use license.

Information on all kinds of copyrights and licensing.

An example of a master use or mechanical use license contract.

Contact the Harry Fox Agency.

ASCAP

BMI

SESAC

Have a question not covered here? send me an e-mail!