What this person is talking about is they write “tvinkle tvinkle ittle stawr” instead of the real lyrics (basically just writing the words phonetically and/or misspelled) to try and bypass the law through “technicalities” that wouldn’t stand up in court.
I doubt so for a few reasons based on how they described this alleged parasitic activity, but mainly because the commenter alluded to Spotify doing this. Would be very surprising if they decided to do something so blatantly illegal, when they could keep extracting money by the truckload with their regular shady shenanigans that do not cross that legality line so obviously.
Regarding what you described, I don’t think I encountered this in the wild enough to remember. IANAL but if not cleared/registered properly as a cover it doesn’t seem to be a workaround or abuse, but would probably be found straight up illegal if the rights holder or relevant rights organization cares to sue. In this case, all I can say is “yes, some people do illegal stuff”. The system largely works.
