general things on copyright
Copyright law is very similar globally, due to the Berne convention on copyright.
Ány country's copyright law grants the copyright to an author. Copyright is the exclusive right of an author to authorize ("license") copies, performance, and derivative works. In case multiple authors jointly create a work, they own the right in their respective parts, or jointly.
The copyright holder can deny making derivatives.
If a derivative is made without authorization, it is copyright infringement. If the author was asked, denied the authorization and it is made anyway, it is wilful copyright infringement.
Relinquishing your rights in the altered work does not make it not copyright infringement. The only way to not commit copyright infringement is to get a license.
Naming the original author of a work you adapted is not just politeness, it is mandatory in all copyrights that follow the Berne convention on copyright.
Licensing Fees
The Verve's agreement to get the license was specifically to pay all the proceeds to the Rolling Stones, but that was an extraordinary case.
License fees for recording a cover version (with the unaltered lyrics!) are usually mandatory to be available. for example in the united-states, it is mandatory to grant a mechanical license to create cover recordings for a licensing fee, for which for example the Harry Fox Agency is collecting and distributing the required payments and royalties. Those Royalties are about 9.1 cents per copy for a sub-5-minute song's recording. This license does not allow to alter lyrics.
However, synchronization (tone and video) is not mandatory to be granted, and those start at a flat 4-digit and are rather open-ended. Without a sync license, you may not make video recordings of a work being performed.
A public performance of a work requires a different license. A performance license is required for any public performance, and those are not regulated either, but typically not too expensive - yet alteration again is not within the scope of such a license. Granting a performance license is typically handled by Performing Rights Organisations such as ASCAP, BMI, and SESAC, taking the required fees and distributing the royalties.
Making an adaptation or alteration is a derivative work. Making a derivative work requires a license that is different again. Those can only be granted by the copyright holders, and if they say no... Close the folder.
The price of copyright infringement
Wilful copyright infringement, especially after you were told no, can be super expensive:
- In the US, the rightsholder can get 150 000 USD and the lawyer fees for willful infringement. The rightsholder can sue in the US if they are there.
- Recoverable costs plus damages are also available in the UK, capped at 60 000 GBP for costs and 500 000 GBP in damages.