Quoted from Jackalwere:Only a clueless ass would think they own the rights to reproduce sounds - it's like saying when a band performs cover songs at a party, the owner of the copyright song is paid. That simply isn't true
Not the copyright holder but the songwriter is supposed to get paid. If a band plays a cover song in a bar, ASCAP/BMI will collect money.
May be different for a non commercial performance like a party, but I'm sure if those guys could figure out how to do it they'd be harassing people there for money as well.
And if you release a CD with a cover song on it you need to pay mechanical rights or something like that, I'm not sure it matters if you charge for it or not.