I am nearly positive (99.9%) that Al will be able to include it in his setlist without any problems. After all, in other instances where he has written parodies that didn't end up on the ALbums (e.g. Free Delivery), he's put them into his Setlist. I don't the exact reasons, but I think that profited distribution of a recording would entitle those legal royalties to the other artist, but at an assembeled gathering where the a live recording is performed, I don't think an artist can expect royalties out of it...on the other hand, there are situations such as playing an exact cover of another song at a live performance would entitle the artist to such royalties...but I am not sure if that is one of these situations...actually, now I'm unsure... hahaha. Anyone else have any clue?
It's my understanding that musicians belong to an organization that they pay fees to. (ascaap?) As long as they pay into it they are paying for the rights to perform the songs live of other artists who are members of the same. So if you're in a cover band, I believe you are required to pay this fee legally. But as long as you pay it you don't need personal permission from any specific artist, you get it as soon as you pay for it.