Most anywhere you go in relation to this topic will tell you other wise, but if you read YouTube's Partnership Program Qualifications and FAQ page carefully, they make it clear that it is possible.
Let's read what Youtube has to say about cover songs:
What is a cover song?
A new performance or recording of a song that has been either previously recorded, is commercially released, or is a popular song from someone else.
What are synchronization rights?
A synchronization (also known as "synch") rights involves the use of a recording of musical work in audio-visual form. This can be in a motion picture, television program, commercial announcement, or music video. Often, the music is "synchronized" or recorded in timed relation with visual images. The user is responsible for obtaining the necessary synchronization rights from the music publisher to use this audio.
What are performance rights?
The definition of a public performance is a performance "in a place open to the public or at any place where a substantial number of persons outside of a normal circle of a family and its social acquaintances is gathered." The user is responsible for obtaining the necessary performance rights from the copyright owner or his representative to perform in a public place.
Simple enough to understand. So, if you want to perform covers on YouTube legally, and potentially become a YouTube partner, let's go through the proper steps.
Step 1: Record Your Song
This doesn't HAVE to be the first thing you do, but I'd recommend doing it, because licenses vary from publisher to publisher, and you may have to enter details about your video which can only be given if it has already been made.
Step 1a: Record Your Song WELL
If you don't do a GREAT job, you're not going to get very many viewers, and if you don't get viewers, you won't be able to partner with YouTube and generate income from your videos.
Step 2: Obtain a Synchronization License
A Sync license is necessary because it is the license for adding a song to video - cover or master track. This is probably the most important license you will need. To obtain a sync license, you'll need to go through the publisher. Many popular songs are available through EMI. If the song you're covering is not available there, find the publisher info about that song by searching BMI's, SESAC's, or ASCAP's database for any publisher info. Once you find the publisher, contact them and request a synchronization license. If written professionally, politely, and briefly, you should get a quick response.
Step 3: Obtain a performance rights.
Since you're specifying your use for YouTube within your synchronization license, it may not be necessary to purchase a second license for performance rights, as the rights may already be included in your synchronization license. Performance rights are granted by the copyright owner, or publisher. When purchasing your sync license, be sure to discuss this and find out if you will need to pay a separate license.
If so, you can often do this through a PRO like BMI, SESAC, or ASCAP. They may often offer a "blanket" license that you pay for use of every song in their repertoires. This is especially good because for a VERY decent price, you can have the rights to perform nearly any song you want at any time.
Now that you've completed all the necessary legal steps to upload your cover song to Youtube, go for it. If you are consistent in uploading content and receive a lot of views and subscribers, you'll have an opportunity to become a YouTube partner.
If it's illegal to do cover songs on Youtube without these licenses, how are so many people getting away with it?
YouTube has partnered with EMI and other major publishers to monetize all the musical content uploaded. When a song is recognized, the publisher is notified and has the option to delete the video, or generate a profit from it by sharing ad revenue and promoting the original artist.
Does that make it legal to upload cover songs to youtube?
NO! All it means is you got lucky the publisher decided to let you keep the video online. Most will do so if you give the original artist credit. One thing to note is if you don't obtain the proper licenses, you CANNOT become a YouTube partner, which means you won't be able to generate ANY revenue off your YouTube channel or its videos.
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