That's fine, I don't mind answering, you're welcome to ask me questions about the project, and I've done a lot of homework on this.
Licensing is somewhere in the $1k territory for the number of units I intend to produce. You're looking at, on average, a dime per song sold for royalties. PHM is 10 tracks, so around a dollar from each CD (or download) has to go to licensing/royalties (before someone chimes in in all-caps, yes, that means I think I can sell a thousand units). Mechanical licensing is purchasable outright; that is, you don't need to specifically talk to someone and obtain permission. So why even do it then? Sometimes, a lower rate (or even free) can be negotiated. I'm taking the permissions route as "Plan A" because I believe the licensing money I could save might be better-spent on the actual product itself, and I want to deliver something interesting, cool, and worth holding onto, and I don't want to have to charge a lot for my own product.
You're right that I do not employ vocals (though I do employ their melodies) and I do not use the recordings. However, the word "parody" is commonly associated with a comedic value and there are some people that think that chiptunes/chipmusic/8-bit/gamemusic/whatever are a serious form of expression and artwork. People listening to parodied lyrics can often "get the joke" right away. People hearing chiptune versions of NIN might say "oh, huh, I recognise that from somewhere...." but not instantly know. Now, I
do use punny titles and some people
do find them funny, as well as the people that
do know NIN rather well, so there's a whole "oh ha, that's funny, it's an 8-bit nine inch nails!" factor... but I'm in enough of a grey area that I need to clarify my intentions.
So, let's do that by quoting fair use law. I'm judged under these criterion:
posted:1. The purpose and character of the use, including whether such use is of commercial nature or is for nonprofit educational purposes
My project is of commercial nature. I perform shows and then people will ask me where they can purchase what I played. I do want to fill that need.
posted:2. The nature of the copyrighted work
The original nature of the copyrighted work is a commercial album of music.
posted:3. The amount and substantiality of the portion used in relation to the copyrighted work as a whole
I intend to tribute the entire album (the precedent you linked/Campbell v. Acuff-Rose Music, Inc. is only about one song).
posted:4. The effect of the use upon the potential market for, or value of, the copyrighted work
First, I do not intend to impede on NIN's ability to sell music. There is no way that anyone would mistake my song for an original NIN work.
Second, I do not intend to steal any of their market share. Judging from the amount of backlash I've received from various NIN fans and forums, I think I can safely say that this is something that not all NIN fans are going to be into, and I never had any inclination to believe otherwise. I consider that reasonable proof that I am not going to hurt their bottom line.
Sadly, even though #4 is pretty great, I'm not looking good on the first three.
One speed bump with fair use law is that nowhere in does it question the intentions of the artist that intends to fall under fair use. Is the artist making a mockery of the original artist, or is the material intended to honor the original artist in some way? And while some might say "it doesn't matter, that's what free speech is about", the original artist still wrote the original work, and should have a say in what is done with the original work, and that's how we arrived at where we are today. Mechanical licenses probably exist largely because of this (and perhaps partly because musicians don't want to have to deal with it half the time).
Now, this isn't a mistake, legal systems aren't
supposed to be about theories and conjecture, they're supposed to be about how one might affect another. That's probably why the copyright office themselves state:
posted:The distinction between fair use and infringement may be unclear and not easily defined. There is no specific number of words, lines, or notes that may safely be taken without permission. Acknowledging the source of the copyrighted material does not substitute for obtaining permission.
....which, in turn, is why I want Plan A to work. If not, Plan B is to pay a sum of money to an agency, and then they give me a license, and everything is "easy". However, "easy" doesn't address that I want to do a Nice Thing by being forthcoming with NIN and say "Hey, I'm not trying to rip you off, I'm a fan and I really love your work, this tribute is for you".
Hopefully this helps/explains a few things.