Just got off the phone with Harry Fox about a totally separate issue dealing with a mechanical licenses from them. Just out of curiosity, I pitched a made up scenario about me hosting this CD on a site that was non profit (totally made up, I don't have any plans too ;-) ) and basically, he broke this down into 2 seperate scenarios
1. If I made this site an interactive streaming site, meaning you could come and select the show and song you wanted to hear, the rate, even if I was a registered non profit site with no advertising income or donations is a penny a stream per cover song
2. If I made it a Radio channel where you listened to what I programmed and could not pick the show or song, there are no royalties due for streams of cover songs
Very interesting the way they break this out, not very logical, but interesting. I mean, I could basically advertise and make money while band X is playing band Z's song and not owe any royalties as long as I don't let you pick what you hear but if I allow someone to pick a specific instance of band X playing band Z's song on a non profit site, I would have to pay. Maybe I'm missing something there, seems very backwards. This chap at HFA did say that this whole streaming thing, even though it's been around for quiet some time is just now being looked at and he expects changes to the policy as it grows. Same goes for torrenting. Hope the music industry pulls it's head out of it's ars long enough to realize that all this really the evolution of the industry that the music giants have fought every step of the way. Maybe they can see that them fighting it really is the demise of the label and the reason why indie and unsigned bands now aren't looking to be signed with major labels. All very interesting, surprising, but interesting.
With all this being said, it seems the burden for enforcing copyrights is still on the copyright holder and I really wonder how many bands cruise the sites we enjoy looking for another band covering their tunes. Then you also have to wonder how many of them really care that it's there.