craigb
I'm still trying to figure out how this works with cover bands (there's a few of those around, eh?). Besides the live performances, there's demos to get the gigs. If most of the above were followed, the wouldn't be any cover bands (or tribute bands!). None could afford it.
The UK situation is that there is a difference between playing a cover or your own arrangement of someone else's work and releasing or distributing it as a recording.
Live royalties are not paid by the cover performer but come from the fees collected by the Performing Rights Society in exchange for granting licenses to venues to put on live music. So the artist should put in a list of material performed to PRS who then process the royalties. So the venue is paying, not the performer.
Unfortunately many small venues don't bother getting a licence, even though they are supposed to and it can be surprisingly inexpensive. And many musicians don't join PRS, especially at the lower earning end of the market. Which is a pain because some venues are run by the kind of people who don't see why they should pay anything for anything if they can get away with not paying. Including not paying towards the composers of the music that brings income to the venue.
If you write/arrange and perform in public for anything other than private functions PRS membership can be a very good idea. Because if your list of songs or works performed includes ones you have registered as your original work or arrangement, PRS will pay you the live royalty rate when you perform them.
Recordings are dealt with completely differently by the Mechanical Copyright Protection Society. Many pressing plants, especially the big ones, will want to know you've MCPS clearance for all the material on the master before they commence work. Including licences that cover your own original work, this being because while you may have written the song you may have assigned the publishing rights elsewhere.
And digital distribution is different again.
This is why good music industry lawyers are scarce and tend to be expensive, but money spent with them to get a recording or publishing deal checked over before signing is often a good investment, or at least get your Musician's Union or Association to give the contract a once-over to check you don't need an expensive lawyer.
No-one likes the lawyers, but the horror stories of bands from the 60s and 70s who sold shedloads of LPs and did hundreds of gigs only to end up with nothing or years of litigation to get what they are owed have at bottom the same moral. The industry is full of sharks at every level and good legal advice at the start can save a lot of anguish later.