CDBaby, a wonderful indie music publisherdistributor, has put up a howto for legally selling downloads of cover songs.
If you record a cover version of a song, (meaning your performance of a song that has been released in the U.S. with consent of the copyright owner), you are entitled by law to release your recording commercially, and the owner of the copyright to the song cannot prevent you from doing so.
The Copyright Act provides for what is called a "Compulsory License", which means that if you follow the steps set forth by statute, you can distribute your recording of that song on a CD or over the internet.
The following details the procedure for individuals to obtain a compulsory license to digitally distribute cover songs over the Internet to end users in the United States.
(Thanks, John!)
