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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Your assumption is wrong. The venue pays licensing fees just like a bar or restaurant would. This allows the cover / tribute band to play.
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