Terms of Service

Section 1

Scope of License

CoverClear handles one specific type of license: the compulsory mechanical license under U.S. copyright law. This license lets you record and distribute your own version of a song that's already been commercially released.

It covers faithful covers only — meaning your recording must preserve the basic melody and fundamental character of the original composition. If you're changing the melody, adding new parts from another song, using a sample, or creating a remix, that's a different type of license that CoverClear doesn't facilitate.

Section 2

Royalty Obligations

Your CoverClear subscription covers the platform service fee only — it doesn't prepay your royalty obligations to songwriters and publishers.

Here's what you owe based on how you distribute:

Streaming only (Spotify, Apple Music, etc.): You don't owe anything extra. Streaming services pay mechanical royalties directly to publishers through the Mechanical Licensing Collective (MLC). You're covered.

Digital downloads or physical copies: Royalties are your responsibility. The current statutory rate is 13.1 cents per copy for songs under 5 minutes (set by the Copyright Royalty Board for 2026). CoverClear will track your sales, calculate what you owe, and charge your payment method on a quarterly basis.

Section 3

Territorial Limitations

The license CoverClear facilitates is a U.S.-only license. If you're distributing exclusively within the United States, you're good.

International distribution is more complicated. Every country has its own mechanical licensing body — PRS/MCPS in the UK, GEMA in Germany, JASRAC in Japan, and so on. CoverClear does not handle international licensing, and we make no guarantees that our license is sufficient for territories outside the U.S.

For streaming, DSPs typically handle international mechanical royalties through local collection societies — but if you're selling downloads or physical copies internationally, you may need to obtain additional permissions. When in doubt, consult a music attorney.

Section 4

Excluded Uses

A compulsory mechanical license is specific. There are several common music uses it simply doesn't cover. If you need any of the following, you'll need to go directly to the rights holder or a specialized licensing service.

• Synchronization uses — pairing music with visual media (YouTube videos, films, TV, ads, Instagram Reels). Requires a separate sync license from the publisher.
• Interpolations or derivative works — using a melody, hook, or lyric fragment from an existing song in a new composition.
• Samples — using actual audio from an existing sound recording requires both a master use license and a sync/sample license.
• Public performance rights — playing music live or broadcasting it. Covered by PRO licenses (ASCAP, BMI, SESAC), not mechanical licenses.
• Background music or karaoke licensing — these require different types of licenses not covered here.
• Distribution outside the United States — see Section 3 above.

Section 5

General Terms

Account Responsibility. You are responsible for maintaining the security of your account. Use a real email address — your license documentation and royalty statements will be sent there.

Subscription & Billing. Subscriptions renew automatically on a monthly basis. You can cancel at any time from your account settings. Cancellation takes effect at the end of your current billing period. Royalty charges (if applicable under Section 2) are billed separately and are not waived upon cancellation.

Accuracy of Information. You agree to provide accurate information about the songs you're licensing and your distribution plans. Providing false information to obtain a license you're not entitled to voids that license.

Limitation of Liability. CoverClear provides a platform service. We facilitate mechanical licenses in good faith based on the information available. We are not responsible for licensing errors caused by inaccurate song metadata, changes in copyright ownership, or uses that fall outside the scope described in these terms.

Changes to These Terms. We may update these terms as the law changes or our service evolves. We'll notify active subscribers by email before material changes take effect.

Governing Law. These terms are governed by the laws of the United States. Disputes will be resolved under U.S. federal copyright law and applicable state law.