Licensing of digital cover songs is an evolving issue. So all guidelines below are based on our best understanding of the current copyright law and is subject to change. Please note that our 'music submission agreement' requires you to take care of all required copyrights clearance and payments.

Having said that, cover songs can be posted legally. To post cover songs online you must agree to pay statutory royalty rates to the publisher of the original song.

An exception to this rule are songs in the Public Domain which don't require any royalty payments.

1. Find the Publisher
The publisher holds the rights to the cover song. So first you must find the publisher of the original song. Most song publishers can be located at http://www.songfile.com or one of the following Performance Rights organizations:
» BMI (www.bmi.com)
» ASCAP (www.ascap.com)
» SESAC (www.sesac.com)

2. Inform the Publisher
Then send a letter by registered or certified mail to the publisher with this info:
» a clear subject line/title that says "Notice of Intention to Obtain a Compulsory License for Making and Distributing Phonorecords"
» your full legal name
» all fictitious/assumed names (stage name, band name) used
» the names of each individual owning a 25% interest or more in the distribution of the song (band members, if you split your sales income)
» your fiscal year (usually Jan 1st - Dec 31st)
» your full physical address - P.O. boxes are unacceptable
» the title of the song
» name(s) of the author(s) of that song
» the type of configuration expecting to be made (a music file distributed over the Internet is called a "Digital Phonorecord Delivery" (DPD))
» the expected first date of distribution
» the name of the performer/band doing the cover
» your signature.

If there is more than one publisher listed, sending a letter to one of them is sufficient; however, if one or more of the copyright holders is not from the United States, it is best to send the notice to all copyright holders.
IMPORTANT: you must send the letter before you post the song on SoundClick.

3. Paying the Publisher
You must pay the publisher on a monthly basis for every download (not stream) according to these statutory royalty rates:
If the playing time for the song is longer than five minutes, the rate is 1.65¢ per minute, rounding up to the next minute.

under 5 minutes = 8.5¢ per copy
5 to 6 minutes = 9.9¢ per copy (6 minutes x 1.65¢)
6 to 7 minutes = 11.55¢ per copy (7 minutes x 1.65¢)
7 to 8 minutes = 13.2¢ per copy (8 minutes x 1.65¢)
etc.
On January 1, 2006, the rates go up to 9¢ per song or 1.75¢ per minute. (As described above.)

The Copyright Office always keeps the most up to date information concerning statutory royalty rates at this link:
http://www.copyright.gov/carp/m200a.html

The monthly statement must be sent by registered or certified mail and include:

» a clear title that says "Monthly Statement of Account Under Compulsory License for Making and Distributing Phonorecords"
» the period (month and year) covered by the statement
» your full legal name
» all fictitious/assumed names (stage name, band name) used
» the names of each individual owning a 25% interest or more in the distribution of the song (band members, if you split your sales income)
» your full physical address - P.O. boxes are unacceptable, unless that is the only option for addresses in your geographic region
» the title of the song
» name(s) of the author(s) of that song
» the name of the performer/band doing the cover
» the playing time (length) of your recording of the song (minutes:seconds)
» the number of DPDs made, i.e. how many times your recording was downloaded
» the number of DPDs that were never delivered due to a failed transmission
» the number of DPDs that were retransmitted in order to complete/replace an incomplete/failed delivery
» the total royalty payable (number of total DPDs, not counting ones never delivered multiplied by the statutory royalty rate (see below))
» the following statement: "I certify that I have examined this Monthly Statement of Account and that all statements of fact contained herein are true, complete, and correct to the best of my knowledge, information, and belief, and are made in good faith"
» your signature

You must also send an Annual Statement of Account at the end of each calendar year, which is virtually identical in content to the Monthly Statements, but must be certified by a licensed Certified Public Accountant (CPA).

4. Remarks
This is how it's done by the book. At least you must send that first letter exactly as described above. Regarding payment you might want to work out something different with the publisher. For some publisher it's even sufficient to wait until they bill you.

All information here is posted to the best of our knowledge and without any guarantee. This is not official legal advice. Please seek the help of an attorney or contact any of the Rights Organizations we mentioned here.

5. SoundClick Genres
All cover songs must be classified in one of the cover songs sub-genre. They are not eligible for the main genre charts.

Further Reading
Harry Fox Agency (www.harryfox.com)
Get It Done article (http://www.getitdone.biz)
Music Publishers' Association (www.mpa.org)
United States Copyright Office (www.copyright.gov)