Ok, someone with more legal knowledge than me help me out. We've been discussing this in the high school section for a few weeks now because it was put out that summer camp music had to be covers or originals as well. Someone posted over there (can't remember who) that covers aren't any better. The whole point of copyright is to protect the artists/writers and make sure they earn the money for their creation. Covers still take the creation and just remake it, so the song the artist wrote, the music they put together is still not getting credit or payment with a cover. Are covers really legal, is it any better? Now you're still stealing their creation, but not only are you profiting off of it instead of them, they likely now don't even get name recognition.
Rachel Platon's fight song is a good example. In my mind I think SE had a large part in her success. Give one of the most watched teams in cheer an exclusive unique new song and you have just gotten your song in front of a lot of people who will go download buy and checkout your other stuff. Kids will share with friends and call into radios to have the song played. Now change that with the new cover rule. New artist Rachel's song is covered. SE uses the cover version in the pyramid. Now Rachel's song is still technically being stolen (even though not her vocals.) Everyone knows the cover song, but has no clue it's Rachel. No one goes searching on iTunes to buy Rachel's song, no one cares to find Rachel on youtube, they just enjoy this song that SE has in their music and next season are going to ask their producer to put it in their own mix. Rachel still isn't getting any credit or financial gain. No one knows who she is either. I almost think covers are worse.