What are the legal rules for covers, remixes, and samples, and how do deals (publishing/admin) affect royalties?
TLDR - Covers > Remixes > Samples > Publishing
Covers
What it is: You record someone else’s composition and do not change melody or lyrics.
Licences needed: Mechanical licence only. No master licence because you own the new recording. In the U.S. you can use the compulsory mechanical via The MLC for digital, or agencies like HFA or Loudr for physical.
Key rules: No lyric or melody changes, otherwise it becomes a derivative work and you need publisher approval. DSPs outside the U.S. still expect you to report the composition so they can pay the right songwriters.
Royalty flow: All master stream income goes to you or your distributor. All publishing income goes to the original writers via their PRO or publisher.
Typical cost: U.S. statutory mechanical is 12 cents per physical download or press. Streaming mechanicals are deducted automatically by DSP or MLC.
Remixes
What it is: You alter stems or add new material to someone else’s recording.
Licences needed: Master use licence from the label or owner of the recording. Derivative work licence from the song’s publisher or publishers.
Key rules: Without both licences, the remix cannot be distributed legally, even for free. Many remix deals pay you an upfront fee or a percentage of the master owner’s share, rarely publishing.
Royalty flow: Most remixers get a piece of the new master income, sometimes called remix points, but zero percent publishing unless they added new melody or lyrics and negotiated co write status.
Deal issues to watch: The label may own the new master outright, work for hire. Clauses can bar you from pitching the remix elsewhere.
Samples
What it is: You use any recognisable chunk of someone else’s recording.
Licences needed: Always two clearances. Master licence from the recording owner for the actual sound. Publishing licence from all writers or publishers of the song portion you sampled.
Key rules: No length is too short to clear. Courts reject that myth. Un cleared samples can trigger takedowns, DMCA strikes, royalty freezes, and statutory damages from 750 to 150000 USD per use.
Negotiating splits: Typical indie deals are 10 to 50 percent of new publishing, sometimes a flat fee plus master royalty override. For major label hits, the publisher may demand up to 100 percent publishing plus an upfront fee.
Alternatives: Re playing or re singing still needs publishing clearance, but no master licence. You can also use royalty free or pre cleared sample packs.
How Publishing and Admin Deals Change the Money
Scenario: DIY songwriter, no admin.
Who owns what: You own 100 percent of publishing.
Who collects: PRO sends writer share. Mechanicals may sit in a black box abroad.
Typical cut: PRO keeps about 10 percent admin in the domestic market.
Scenario: Admin deal, for example Songtrust or Sentric.
Who owns what: You keep ownership.
Who collects: Admin chases global mechanicals, micro sync, lyric sites.
Typical cut: 10 to 20 percent of publishing collected.
Scenario: Co publishing deal with label or producer.
Who owns what: You assign 25 to 50 percent of publishing to the company.
Who collects: They register, pitch sync, and collect.
Typical cut: Co publisher takes its percentage off the top plus admin fee.
Scenario: Work for hire buy out.
Who owns what: You get an upfront fee and assign 100 percent of publishing.
Who collects: The company owns and collects all future income.
Typical cut: Zero percent backend unless a writer’s share is negotiated.
Impact:
With an admin deal you still clear covers and samples yourself, but the admin will chase small foreign royalties you would otherwise miss.
If you sample a track whose publisher is Sony ATV, your admin forwards their mechanical and publishing share to Sony. They do not reduce the percentage.
Co publishing deals mean every sync or stream sends a chunk of your publishing to the co publisher before you see writer’s share.
Compliance Checklist Before Release
Split sheet signed, all writers and percentage splits.
Mechanical licence secured for every cover territory.
Sample clearance letters and fee invoices, both master and publishing.
PRO and MLC registrations with exact metadata, ISRC and ISWC.
Distributor uploads with correct cover, remix, and feat labels. Supply original composer names in the metadata field.
Common Pitfalls and Fixes
Pitfall: Uploading a cover with altered lyrics.
Consequence: Treated as derivative, takedown.
Fix: Get publisher approval or revert lyrics.
Pitfall: Assuming fair use for a sample.
Consequence: DMCA strikes and frozen royalties.
Fix: Clear or replace the sample.
Pitfall: Calling a remix an original track.
Consequence: Copyright claim and reputation hit.
Fix: Credit properly and secure both licences.
Pitfall: Missing foreign mechanicals.
Consequence: 5 to 15 percent income lost.
Fix: Sign a publishing admin deal or register with the MLC and foreign CMOs.
Pitfall: Forgetting sync rights on covers.
Consequence: TV pitch rejected.
Fix: Secure the publisher sync licence up front.
Key Takeaways
Covers need only a mechanical licence unless you change the work.
Remixes and samples always require both master and publishing approval.
Two licences every time you sample, no length is immune.
Publishing and admin deals decide who gets paid first, not who owns the song. Read the percentages.
Paperwork first and upload second. One missing clearance can freeze every royalty line you have.
