"use of 'Olympic' could be barred under copyright law. And maybe even '2012' "

A butcher in Dorset has already fallen foul of the statutes passed in 1995 and 2006, which in effect turn ALL the elements of the Olympic London 2012 title into a trademark or 'ownable brand'
Presumably this is not to confuse his fresh, locally produced meat with the 'health food' sponsors of the O word like Cadbury, McDonald's and Coca-Cola.

Sausages!

It's hardly surprising that a recent survey found that
"35% of Brits said they associated the Games with 'money', putting it second behind 'achievement' in a ranking of key statements associated with the Olympic brand."

But, to return to music, widely discussed amongst my musician friends on Facebook is report by the Musicians' Union that it has been contacted by many concerned members who have received requests to work as 'volunteers' i.e. unpaid as they will receive 'great exposure' while staff such as security and stage crews will receive their usual fees.
This apparently includes performances connected with the celebrations for the Olympic torch relay and concerts being organised by the Greater London Authority and promoter Live Nation.

It also has been reported that the 'live' headline acts at the games will be pre recorded!