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From Citizendium, the Citizens' Compendium

A cover band is a band that only plays ( or "covers") the songs of other artists, rather than playing original material. Often, a cover charge will be collected at venues featuring a cover band. Most local bands are cover bands and many famous artists started out covering the material of others. Famous musicians and bands also often cover the songs of others. For example, Patsy Cline covered Crazy, a song written by Willie Nelson, and one of Willie's big hits, Pancho and Lefty, was a cover song, previously written and sung by Townes Van Zandt. Covering another performers songs is considered a from of respect among song writers.