Music Cover License: A Practical Guide for Artists, Labels, and Publishers in Italy and Europe

Music Cover License: A Practical Guide for Artists, Labels, and Publishers in Italy and Europe

Cover songs occupy a special place in music law. Anyone can record a cover of an already-released song without seeking permission from the composer, in most jurisdictions worldwide, thanks to compulsory mechanical licensing mechanisms developed in the early twentieth century to balance creator control with public access to musical works. But “without permission” does not mean “without obligations”: the cover artist must pay mechanical royalties to the composer and publisher, must register the cover correctly with the relevant collecting societies, and must respect specific limits on what kind of cover is permitted under a compulsory licence — limits that vary significantly between Italy, the European Union, the United States, and other jurisdictions.

This guide walks through the legal framework for music covers in Italy and the European Union, the mechanical licensing process through SIAE and Soundreef, the specific rules for streaming covers, the treatment of mash-ups, medleys, parodies, and AI-generated cover versions, and the contractual issues that arise when a cover becomes commercially successful. It is written for artists, indie labels, music publishers, sync agencies, and lawyers handling cover song releases in Italian or European territory. For the broader music law context, see our pillar guide on music law in Italy and the European framework.

What is a cover song, legally

A cover song, in legal terms, is a new recording of a previously released musical composition, performed by an artist other than the original recording artist (or by the same artist in a substantially different version). The cover involves only the composition — the melody and the lyrics — not the original recording. The cover artist creates a new master recording; the underlying composition remains the property of the original composer and publisher.

This distinction is critical and shapes every aspect of cover licensing:

  • the cover artist must obtain a mechanical licence on the underlying composition;
  • the cover artist does not need to obtain any permission from the original recording artist or label, because the original master is not being used;
  • the cover artist owns the new master recording, with all the neighbouring rights that come with it;
  • the cover artist receives no royalties on the original composition — the writer’s share continues to flow to the original composer.

The first release rule and after

Across most jurisdictions — including Italy, the European Union as a whole, the United States, and most of the world — the basic rule is the same: only the composer (and their publisher) controls the first release of a song. Until a song has been published or released to the public for the first time, no one else can record and release it without the composer’s express authorisation.

Once the song has been lawfully published, the rule reverses: anyone can record and release a cover version, provided they comply with the applicable mechanical licensing requirements. The composer’s exclusive control over the song is replaced by a right to receive royalties.

This shift is achieved through the mechanical compulsory licence — a statutory mechanism that allows cover artists to record and release covers without seeking individual permission, in exchange for a standardised royalty payment administered through collecting societies.

For unreleased songs, by contrast, full authorisation must be obtained directly from the composer or publisher. Recording or releasing a cover of an unreleased song without authorisation is straightforward copyright infringement.

Mechanical licensing in Italy and Europe

Mechanical rights — the rights to reproduce a composition in physical or digital form — are protected under Italian Copyright Law no. 633/1941 and harmonised across the European Union by EU directives, including Directive 2001/29/EC on information society copyright and the broader EU copyright acquis.

In Italy, mechanical licensing is administered through two main channels:

  • SIAE (Società Italiana degli Autori ed Editori): the historic Italian collective management organisation, handling mechanical licensing for the vast majority of registered repertoire;
  • Soundreef: the independent collective management entity competing with SIAE since the 2017 liberalisation aligned with Directive 2014/26/EU.

For Italian-released covers, the cover artist or label must obtain a mechanical licence through SIAE (or Soundreef, depending on which CMO manages the underlying composition). The licence authorises reproduction of the composition in the cover recording, and the cover artist pays the applicable royalty rate to the CMO, which distributes the amount to the composer and publisher.

The royalty rate for mechanical reproductions is governed by SIAE/Soundreef tariff schedules and is calibrated by:

  • the type of reproduction (physical CD, vinyl, download, streaming);
  • the number of copies or streams;
  • the length of the cover relative to standard durations;
  • any specific terms applicable to the relevant repertoire.

For cross-border releases, mechanical licensing interacts with the home CMO of the foreign rights holder through reciprocity arrangements established under Directive 2014/26/EU on collective management.

SIAE and Soundreef: how to register a cover

For a cover released in Italy or with Italian-source revenue, registration with SIAE or Soundreef is the operational gateway to mechanical royalty payment and to the cover’s legal status. The process typically involves:

  1. Identify the rights holder of the underlying composition: which CMO manages it (SIAE or Soundreef), who is the registered publisher, who are the writers and their splits;
  2. Submit the cover registration to the relevant CMO with: cover artist details, recording details (title, duration, technical metadata), planned release date, planned exploitation channels;
  3. Pay the mechanical royalties according to the applicable tariff schedule;
  4. Distribute the cover through standard channels: aggregators (DistroKid, TuneCore, CD Baby, ONErpm, Believe, AWAL), direct label distribution, or physical/digital channels;
  5. Track exploitation through CMO reporting and platform statistics.

For independent artists releasing covers through aggregators, most aggregators offer integrated mechanical licensing services that streamline the SIAE/Soundreef registration and royalty payment process. For more complex releases (multi-territory, multi-CMO, premium repertoire), direct engagement with the CMO and with the music publisher may be necessary.

Royalty splits: who gets paid for a cover

When a cover is released and exploited, multiple royalty streams flow to different parties:

  • The original composer (and publisher) receive: mechanical royalties on every reproduction (physical sale, download, streaming reproduction); performance royalties when the cover is publicly performed (broadcast, streamed, played in venues), collected through SIAE/Soundreef on the writer’s and publisher’s shares; synchronisation income if the cover is used in audiovisual works;
  • The cover artist (as performer) receives: master rights revenue from sales and streams of the cover recording (less the mechanical paid to the composer); neighbouring rights through NUOVO IMAIE (or the equivalent foreign CMO) for public communication of the recording;
  • The label or producer of the cover recording receives: neighbouring rights as phonogram producer through SCF; share of revenue from the cover recording based on the contract with the cover artist.

The original recording artist (the artist who first recorded the song) does not receive royalties from a cover by another artist — unless the original recording artist is also the composer, in which case they receive composer royalties (not performer royalties). This is one of the most frequently misunderstood aspects of cover licensing.

Streaming covers on Spotify, Apple Music, YouTube

Streaming covers has become the dominant way covers reach audiences. The legal framework adapts mechanical licensing principles to streaming platforms:

  • Spotify, Apple Music, Tidal, Deezer, Amazon Music: covers are licensed through aggregator distribution. The aggregator handles mechanical licensing via CMOs and pays the appropriate royalties from the streaming revenue. Each stream of the cover generates both performance royalties (to the composer through SIAE/Soundreef) and mechanical royalties (paid by the platform);
  • YouTube Music and YouTube: YouTube has specific frameworks for cover videos. Content ID typically identifies covers and routes a share of advertising revenue to the original composer and publisher. For commercial covers released through YouTube Music, the standard streaming mechanical licensing applies;
  • SoundCloud: SoundCloud has its own licensing framework, with specific rules for covers depending on whether the cover is monetised or non-monetised;
  • TikTok and Reels covers: short-form video platforms have specific licensing arrangements with CMOs that cover short fragments of compositions, including covers. The framework is evolving.

For cover artists releasing through aggregators, the integrated mechanical licensing typically handles streaming compliance. For more sophisticated releases (premium repertoire, viral covers, sync placements), specialist legal review of the streaming licensing framework is advisable.

Limits on what a cover can do

The compulsory mechanical licence covers the right to record a cover, but it does not give the cover artist unlimited creative freedom. There are specific limits on what counts as a permissible cover under the compulsory licence.

Arrangement freedom and limits

The cover artist can change the musical arrangement of the song: different instrumentation, different tempo, different key, different stylistic interpretation. A folk song can become a metal cover, a ballad can become a club remix, a guitar song can become an orchestral version. This arrangement freedom is broad and well established.

However, the arrangement freedom has limits:

  • the cover cannot change the fundamental melody or harmonic character of the song to the point where it becomes a different composition;
  • the cover cannot include new lyrical content not in the original (subject to specific exceptions for translations and adaptations, see below);
  • the cover must respect the moral rights of the composer, including the right of integrity — an arrangement that distorts or degrades the composer’s work in ways that prejudice their honour or reputation can trigger moral rights claims.

Lyric changes

Changes to the lyrics are not covered by the standard mechanical compulsory licence. A cover that translates the lyrics into a different language, adds new verses, or substantially changes the original text typically requires:

  • express authorisation from the publisher (and often the composer, given moral rights implications);
  • a separate agreement on the rights to the new lyrical content (typically a co-authorship arrangement);
  • specific drafting of the rights allocation between original composer, lyrical adapter, and publisher.

Italian and European law treats lyrical changes as creating a derivative work, subject to express authorisation. This contrasts with the more permissive US framework under specific compulsory licence provisions.

Mash-ups and medleys

Mash-ups (combining elements of multiple songs into a new composition) and medleys (sequential performance of multiple songs in a single recording) are not covered by the standard mechanical compulsory licence. Each constituent composition requires express authorisation, plus the original recordings (if used) require master use licences.

Mash-ups in particular have been an active area of music law dispute, with several high-profile cases on both sides of the Atlantic. The general rule across Italy, the EU, and most jurisdictions is that mash-ups require comprehensive clearance — both compositions and masters — and are not protected by any compulsory licence or fair use exception in their commercial form.

Parodies and pastiche

Parody is a specific legal category in EU copyright law, recognised by Article 5(3)(k) of Directive 2001/29/EC. The Court of Justice of the European Union held in Deckmyn v. Vandersteen (C-201/13, 2014) that parody is an autonomous concept of EU law and requires that the work evoke the original while being noticeably different and constituting an expression of humour or mockery.

Under Italian law, parody is recognised as an exception to copyright under Article 70-bis of the Italian Copyright Act (introduced by the DSM transposition). The exception allows the use of protected works for purposes of caricature, parody, or pastiche, subject to attribution requirements and limits on prejudice to the author’s legitimate interests.

Parody and pastiche of musical compositions therefore have a specific legal status that differs from standard covers. A parody can include lyrical changes, structural adaptations, and stylistic modifications that would not be permitted under a standard mechanical licence — but only if the work qualifies as parody under the legal test, and subject to moral rights considerations.

Cover songs in audiovisual works (sync uses)

Using a cover song in an audiovisual work (film, TV, advertisement, video game) requires multiple licences in parallel:

  • Synchronisation licence from the music publisher of the original composition, authorising sync with the audiovisual content;
  • Master use licence from the owner of the specific cover recording (typically the cover artist’s label or the cover artist directly);
  • Mechanical compliance for any reproduction of the cover.

For productions using a cover instead of the original recording, the cost calculus is often favourable: the master use licence for an indie cover is typically a fraction of the licence fee for a major-artist original recording, while the synchronisation licence cost (paid to the composer/publisher) remains similar regardless of which recording is used. This makes covers a common strategic choice for productions with limited music budgets, including Italian independent productions accessing the cinema tax credit.

For more detail on sync licensing, see our sync licensing guide.

AI cover voices: the 2025-2026 regulatory framework

Artificial intelligence has introduced a fundamentally new dimension to cover song law. AI cover voices — recordings where an AI model has been trained on an artist’s voice to generate the cover, mimicking that artist’s vocal performance — sit at the intersection of multiple legal regimes:

  • EU AI Act (Regulation 2024/1689): imposes transparency obligations on AI-generated content, including clear labelling of AI-modified or AI-generated voices in commercial uses;
  • Italian Law 132/2025 on artificial intelligence: integrates the national framework with specific provisions on copyright, authorship of works generated with AI, and identification of synthetic content;
  • Image rights and personality rights: an artist’s voice has long been recognised as part of personality rights under Italian and European law. Unauthorised use of an artist’s voice through AI cloning may violate these rights independently from copyright;
  • Master use considerations: where the AI training used recordings of the artist, the training itself may have required licensing from the artist’s label;
  • Composer rights: the underlying composition’s rights remain unchanged — the cover still requires standard mechanical licensing.

The result is that AI cover voices in commercial form require, in addition to standard mechanical licensing:

  • express consent from the artist whose voice is being cloned;
  • transparency obligations on the AI origin of the recording;
  • specific contractual treatment if the AI cover is to be released commercially.

Non-commercial AI covers (released on personal social media, not monetised) sit in a more uncertain legal area, with evolving case law and platform policies. Major streaming platforms have begun to introduce specific frameworks for AI-generated content, with takedown procedures for unauthorised AI clones of named artists.

For artists who frequently use AI tools in cover production, or for labels releasing AI-assisted covers commercially, specific legal review is advisable to address consent, transparency, contractual structure, and compliance with the AI Act and Law 132/2025.

Recording the cover: contractual issues

Beyond the mechanical licensing of the underlying composition, the cover artist faces standard contractual issues for the cover recording itself:

  • If the cover artist is signed to a label: the cover recording is typically covered by the existing artist-label agreement, with master rights flowing to the label and the cover artist receiving royalties under the existing royalty structure. Specific cover projects may be negotiated as separate releases within the broader deal;
  • If the cover artist is independent: the cover artist owns the master recording, registers it with SCF (for neighbouring rights) and the relevant CMO for compositional rights flow, and distributes through aggregators or direct channels;
  • If the cover involves session musicians or other contributors: each contributor needs an appropriate agreement (session musician agreement, featured artist agreement) to ensure that the master rights flow correctly to the cover artist or label;
  • If the cover is part of a tribute album or compilation: specific contractual structures handle the relationship between cover artists and the label/producer compiling the album, including royalty splits, credit allocation, and rights administration;
  • If the cover becomes commercially successful: standard reporting and royalty mechanisms apply. The cover artist may have rights of contract adjustment under Article 22-bis of the Italian Copyright Act (DSM Directive Article 20) if initial compensation proves disproportionately low compared to subsequent revenues.

For artists and labels frequently releasing covers, structuring the contractual relationship to optimise rights allocation, royalty flow, and AI compliance is increasingly important.

Frequently asked questions

Do I need permission to record a cover of a famous song?

Once the song has been lawfully released, you can record and release a cover without seeking individual permission, provided you comply with mechanical licensing requirements through SIAE, Soundreef, or the equivalent CMO. You do not need to contact the composer or publisher directly for standard covers, but you must pay mechanical royalties and register the cover correctly.

Can I cover an unreleased song?

No, not without express authorisation from the composer and publisher. The compulsory mechanical licence applies only to songs that have been lawfully released to the public. Unreleased songs remain under the composer’s exclusive control.

Do I need to ask the original recording artist’s permission for a cover?

No. The original recording artist has no rights over the underlying composition (unless they are also the composer). You need permission only from the composer/publisher, and only in the form of standard mechanical licensing through the CMO. The original recording artist receives no royalties from your cover.

Can I change the lyrics or translate a cover into Italian?

Not under the standard mechanical licence. Lyrical changes, translations, and substantial textual modifications create a derivative work that requires express authorisation from the publisher (and consideration of the composer’s moral rights). Standard practice is to negotiate a specific agreement covering the new lyrical content and the rights allocation.

How are cover royalties calculated in Italy?

Mechanical royalties on covers are calculated based on SIAE or Soundreef tariff schedules, considering the type of reproduction (physical, download, streaming), the number of copies or streams, the length of the cover, and the applicable CMO arrangements. Streaming platforms typically handle this through their aggregator relationships with CMOs.

Can I release a mash-up of two famous songs?

Mash-ups are not covered by the standard mechanical compulsory licence. Each constituent composition (and recording, if used) requires express authorisation. Releasing a commercial mash-up without comprehensive clearance constitutes copyright infringement. Some non-commercial uses (personal social media, transformative uses meeting specific exception criteria) may fall under different regimes, but this is an evolving area of law.

What about parodies of music?

Parodies of musical compositions are recognised as a specific exception under EU copyright law (Article 5(3)(k) of Directive 2001/29/EC and CJEU Deckmyn ruling) and under Italian law (Article 70-bis of the Italian Copyright Act). Parodies can include lyrical and structural modifications that would not be permitted under a standard mechanical licence, but must meet specific legal tests (evoke the original, be noticeably different, express humour or mockery) and respect moral rights.

Can I release an AI-generated cover voice of a famous artist?

Commercial release of AI cover voices imitating a named artist requires express consent from that artist, transparency obligations under the EU AI Act, compliance with Italian Law 132/2025, and standard mechanical licensing of the underlying composition. Unauthorised commercial release of AI clones violates personality rights and is increasingly subject to platform takedown procedures.

Can I sync a cover I recorded into a film or advertisement?

Yes, with parallel licensing: sync licence from the composer/publisher of the original composition, master use licence from the owner of the cover recording (typically the cover artist or their label), and standard mechanical compliance. Covers are often a cost-effective alternative to original-recording sync deals.

What rights do I have if my cover becomes more famous than the original?

You own the master recording of your cover, with all neighbouring rights flowing from it. You do not acquire rights to the underlying composition, which remains with the original composer and publisher. However, if your cover generates significant revenue and the contractual compensation you receive is disproportionately low, you may have a right of contract adjustment under Article 22-bis of the Italian Copyright Act (DSM Directive Article 20).

How DANDI supports cover artists, labels, and publishers

DANDI.media supports cover artists, indie labels, music publishers, and audiovisual producers using cover recordings on the Italian and European cover song landscape:

  • Mechanical licensing strategy: navigation of SIAE, Soundreef, and cross-border CMO mechanisms for cover releases;
  • Cover recording agreements: drafting and negotiation between cover artists and labels, including tribute albums and compilation projects;
  • Derivative works clearance: lyrical changes, translations, arrangements requiring express authorisation;
  • Mash-up and medley clearance: comprehensive licensing strategies for compositions and masters;
  • Parody and pastiche analysis: legal review of parody works under EU law and Italian Article 70-bis;
  • AI cover voice compliance: consent management, transparency, contractual structure under EU AI Act and Italian Law 132/2025;
  • Cover sync clearance: licensing of covers for audiovisual productions, particularly Italian tax-credit productions;
  • Contract adjustment claims: representation of cover artists under DSM Article 22-bis where covers prove disproportionately successful relative to compensation;
  • Disputes and enforcement: copyright claims, plagiarism analysis, royalty disputes.

For an initial consultation on a cover project — whether you are releasing a single cover, building a tribute album, navigating AI cover voice questions, or addressing a cover-related dispute — book a consultation with Avv. Claudia Roggero, founding partner of DANDI.media.

Resources and useful links

TopicResource
Music Law in Italy and Europe — pillar/en/music-law-italy-international-artists-labels/
Music Publishing Agreements/en/music-publishing-agreements-italy-foreign-publishers/
Italian Record Deals/en/italian-record-deals-foreign-artists/
Sync Licensing in Italy/en/sync-licensing-italy-music-supervisors-publishers/
Music Synchronization Contract (original scores)/en/music-synchronization-contract/
Music Publishing Glossary/en/glossary-music-licensing-terms/
Music Artist Contract Template/en/music-artist-contract-template/
Italian Copyright ActLaw 633/1941 (Normattiva)
EU Copyright DirectiveDirective EU 2001/29/EC
DSM Directive Italian transpositionLegislative Decree 177/2021
EU AI ActRegulation EU 2024/1689
SIAEsiae.it
Soundreefsoundreef.com
NUOVO IMAIEnuovoimaie.it
SCFscfitalia.it

 

Dandi Law Firm provides legal assistance in several Practice Areas. Check out our Services or contact Us!

Italian Entertainment Lawyer I Copyright, IP and Film Co-productions

Site Footer