If you have been wanting to buy Guitar Hero World Tour just so you can rip out a heavy metal remix of the Super Mario Bros. theme song to share online, you may be slightly disappointed to learn that you will not be allowed to do that. Activision has announced that if anything found on the GH Tunes is either copyrighted, or sounds like something copyrighted, it will be removed.
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"We'll be actively monitoring the site. And, obviously, if the copyright holder complains, Activision will pull it down immediately. We can't condone people putting up covers of music. It's really there for original content."
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What's worse, is that anyone who excessively disobeys these rules will have their system banned from Activision's online service. However, you should be able to create and keep any music stored offline on your machine without any issues.
Source:
G4 - The Feed - 'Guitar Hero' Studio Won't Allow Covers