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A cover song is a new performance or recording by a musician other than the original performer or composer of the song.Typically, the melody and structure is similar, though the cover may have a new arrangement.
Once a song is published you have the right to cover it as a live performance, but not as a recording or video which would require separate licences (mechanical and sync).
In order to record and release a cover song as a sound recording, the artist must obtain a mechanical licence from the copyright owners. In the simplest case, the copyright owner may be another artist, however, there are more complex cases where there may be multiple writers represented by multiple publishing companies, and/or record labels.
Canadian artists wishing to release a cover can obtain a mechanical licence from CMRRA (https://cmrradirect.cmrra.ca/WorkRegistration/ViewRepertoireList.aspx) or Harry Fox in the US.
Legally releasing a cover song on YouTube technically requires a sync licence. In cases where a sync licence is not obtained, YouTube uses its Content ID System to distribute any ad revenue to the rights holders.

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