Cover Songs and Copyright Law: Why Your Video Got Demonetized or Taken Down ⚖

If you are a creative entrepreneur using cover songs to build your audience, you may have already encountered the dreaded demonetization, copyright flag, or takedown notice on YouTube. Cover songs are algorithm friendly, but they come with legal traps that can impact your business if not properly handled.

This post breaks down why this happens and how you can protect yourself moving forward.

1. Is It Legal to Do Cover Songs?

Yes! Under U.S. law (and in many similar jurisdictions), it is legal to record and release a cover song. The legal foundation for this is the compulsory license, which allows someone to record a new version of a song as long as it does not change the basic structure or lyrics.

Music streaming platforms, like Spotify or Apple Music, now handle these licenses on behalf of users. That means if you want to upload your cover song to a streaming platform, you are typically in the clear.

2. The Problem: Video Is a Different Story

The moment you combine your cover song with video, whether that is a high-production music video or a simple smartphone clip, you need a sync license (synchronization license). This is a separate legal requirement that allows you to "sync" music to visual content.

Unfortunately, sync licenses are expensive and complex to negotiate. It is not uncommon for licensing fees to start at $5,000 or more, which makes them impractical for most entrepreneurs or independent creators.

3. YouTube's Workaround (and Why It Still Costs You)

Major record labels have made direct deals with YouTube to allow creators to upload cover songs to the platform. When you upload a video with a cover song, Content ID scans your content and identifies the underlying composition.

This allows the rights holder to monetize your video, meaning any ad revenue goes to them, not to you. While this is better than a copyright strike, it still prevents you from earning income directly from your content unless you dispute the claim or have a licensing agreement in place.

4. Building a Cover Song Strategy

• Many creators make a full-time living using cover songs, and it is entirely possible, with the right strategy. Consider these tips:

  • Use covers as fillers between original releases to stay consistent and boost your algorithm reach.

  • License instrumental tracks carefully. Always review the contract terms from companies that sell piano, guitar, or orchestral versions of popular songs.

  • Produce your own instrumentals to ensure maximum control and legal compliance.

  • Keep covers true to the original structure and lyrics. Changing the melody or lyrics could turn your project into an interpolation, which requires a different type of license.

  • Do not sample. Sampling from the original master recording (even a small piece) requires express permission and is not the same as creating a cover.

    
    

4. The AI Gray Area

AI platforms currently restrict the use of popular songs to prevent unauthorized covers. If you use AI tools to replicate a famous voice or generate a version of a popular song, you could be violating both publicity rights and copyright laws.

Always check the terms of service and avoid using AI-generated voices without proper clearance.

5. Monetization Challenges and Legal Support

Even if you follow all the right steps, monetization can still be tricky. Many entrepreneurs mistakenly assume that uploading a cover is fair use. It is not. Your revenue can easily be diverted through Content ID, leaving your video up but your earnings gone.

At Delgado Entertainment Law, we help business owners and creative entrepreneurs protect their content, monetize their work, and stay compliant with copyright laws. We offer free case evaluations and have proudly earned over 100 five-star reviews on Google.

Book an Appointment Today

Krystle Delgado, Esq.

CEO/Founder