Originally Posted by Micodin
they DON'T have to pay if they are using someone's beat or sample at a live show. it's the same loophole that DJ's have when DJ'ing other artists music at live events. rappers have been rapping over other artists beats at live shows since the dawn of hip-hop.
they DO have to pay if they are selling that live recording that contains other artists beats or samples.
That's the right answer. There are royalties for playing other people's music in public but they are very small and typically paid by the venue.