What is a Cover Version?
(pellentesque-convallis-mattis-nisl-vivamus-at-massa-5)
A Cover Version is a version of the song other than the original recording. Cover Versions often pose a cheaper alternative to clearing the original version's Master Rights.
There are well-known cover versions, such as The Beatles' version of "Twist & Shout" which are probably more expensive than the original.
And than there are Cover Versions performed by unknown artists, which are produced for the sole purpose of being an alternative to the original recording for potential Licensors. These versions mimic the original performance, sound and arrangement.
These versions are also known as Sound-Alikes.
In simpler terms, let's say you're a computer company producing a TV advertisement, and have decided that the perfect song for your ad is "Changes" by David Bowie.
Using the original David Bowie version of the song obligates you to clear the Publishing Rights and the Master Rights.
Now, if you were to be satisfied with a well-produced Cover Version, you would only have to clear the Publishing Rights.
Though, neither is cheap in this case, clearing both would be a lot more expensive.
Legal Note:
In some countries, Sound-Alike versions are ruled as infringement of the song's copyright.