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I am making a game, the theme of the game is kind of romantic, and I, myself, have made a piano version of a modern pop song that would fit with that theme. The song in question is still under copyright, and I'm not the owner of the copyright.

Can I use it as a background in my game? Would there be any legal issue regarding copyright/IP etc?

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It's not just the arrangement and interpretation of a song which falls under copyright but also the composition itself. So you will violate the copyright of the original composer. That means you will either have to compose your own song, use a song which was released by the author under free terms or on which the copyright has expired.

When you are looking for well-known, sad-romantic piano song which is in the public domain, then how about Beethoven's For Elise?

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    \$\begingroup\$ Or "Moonlight Sonata" from Beethoven :) \$\endgroup\$ – Maik Semder Apr 14 '16 at 9:37
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You most likely will be violating the copyright. Given that it's for a commercial purpose it won't fall under fair use.

You can get around that by looking who owns the rights to the song and negotiating a license for its use in your game. This would be the "record label" company which you can easily find out with a little bit of research. (For this particular song wikipedia lists Columbia Records and Epic Records both owned by Sony Music Entertainment).

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