Licensing FAQ

Your questions,
answered.

Everything you need to know about mechanical licenses, royalties, and covering songs legally.

7 Questions

For streaming-only releases in the U.S., no. Streaming platforms like Spotify and Apple Music pay mechanical royalties directly to songwriters and publishers through the Mechanical Licensing Collective (MLC) under the blanket license created by the Music Modernization Act. For digital downloads and physical releases, mechanical royalties are owed at the statutory rate set by the Copyright Royalty Board — currently 13.1 cents per copy for songs under 5 minutes. CoverClear tracks your download and physical sales and remits these royalties to the appropriate publishers on your behalf.
A mechanical royalty is a payment owed to the songwriter and publisher of a musical composition each time it is reproduced — whether as a download, a physical copy (CD, vinyl), or an interactive stream. For streaming, these royalties are handled automatically by the streaming platforms. For downloads and physical copies, the person distributing the cover (you) is responsible for paying the statutory rate to the copyright holder.
Yes. For downloads and physical releases, CoverClear tracks your sales, calculates the royalties owed at the current statutory rate, and remits payment to the appropriate publisher(s) on a quarterly basis. You receive a transparent statement showing exactly what was paid and to whom.
No. DistroKid charges $12 per cover song per year, and your cover is removed if you stop paying. CoverClear charges a one-time platform fee — your license documentation stays active permanently. For streaming-only releases, no ongoing payments are required from you. For downloads and physical releases, statutory royalties are tracked and billed based on actual sales, not flat annual fees.
Not yet. CoverClear currently supports compulsory mechanical licenses for faithful cover songs only. Interpolations (using part of an existing melody, lyric, or hook in a new composition) and samples (using actual audio from an existing recording) require direct, negotiated permission from the copyright holder(s). These use cases are not covered by the compulsory license. We are building support for interpolation and sample licensing — check back soon.
CoverClear's mechanical license covers U.S. distribution. For international territories, each country has its own mechanical licensing body (PRS/MCPS in the UK, GEMA in Germany, JASRAC in Japan, etc.). Many streaming platforms handle international mechanical royalties through local collection societies. We recommend consulting with a music attorney if you plan to distribute physical copies or downloads internationally.
No. A mechanical license covers audio-only reproduction and distribution. Video covers on YouTube, TikTok, Instagram Reels, or other visual platforms require a synchronization (sync) license, which must be negotiated directly with the publisher. Most YouTube cover artists rely on YouTube's Content ID system, where the original publisher can choose to monetize the video. CoverClear does not currently offer sync licensing.

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