Music licensing is genuinely confusing because there are multiple rights involved in any song, and each right requires its own license. Let me break it down for cover songs on YouTube:
1. Mechanical License: This covers the right to reproduce and distribute a musical composition (the underlying song, not a specific recording). Under 17 U.S.C. ยง 115, once a song has been publicly released, anyone is entitled to a compulsory mechanical license to make their own recording of it, provided they pay the statutory royalty rate. The current rate for songs under 5 minutes is $0.12 per copy ๐คท.
2. Synchronization (Sync) License: This covers the right to pair music with visual content (video). There is no compulsory sync license. This must be negotiated directly with the copyright holder (usually the publisher). This is the license most YouTubers don't realize they need.
For a cover song on YouTube, you technically need both: a mechanical license (for reproducing the composition) and a sync license (for pairing it with your video). The compulsory mechanical license under ยง 115 only covers audio-only distribution, not audiovisual works.
In practice, this is what makes YouTube covers legally tricky. The sync license requirement means you technically need individual permission from every publisher, which is often impractical for independent creators.