As far as I know, cover bands don’t have to pay the original band to use their catalog, even though they tour and make money off of it. Why is this allowed, but in other scenarios (sampling music, movie soundtracks, commercials, etc.) you have to pay for the rights to use the song?
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Cover bands don’t have to pay a performance license because they’re the performers. They still have to pay the songwriter’s license, but there’s a sane blanket charge for that and the songwriter’s guild sorts out who gets what.
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