I think you've got it straight. I wouldn't sweat about it at all on a demo or in a live performance.

And I think the way copyright law works, is that once a song has been released, you can record it, you just have to obtain the permission and pay the royalties on your sales. The only way they can refuse you the use of the song, is if you have altered it not to their liking (unfriendly amendment, I guess you'd call it.) Ergo, a bunch of Stan Rogers unreleased songs were unavailable to other artists until they were put out last year on "Coffee House to Concert Hall; I think the only person who was given permission to record an unreleased Stan song was Tom Lewis who did "Down At The Sailor's Rest".

I could be wrong about most of this though, not being an international music copyright lawyer anymore...

Willie-O
Purveyor of Bad Legal Advice