I read an article on Mylo's first album.

I think his whole album got cleared because although he used samples each song was demonstrably different to the original, so it was deemed to be a new piece of music.

Don't know the legal ins-and-outs of it, and given how big the album was I'm guessing it got pretty carefully scrutinized but I remember thinking at the time that it sounded a pretty sensible way to do things. Rip off a sample in entirety and you have to pay for borrowing someone elses work. Mangle a sample and it becomes something new, providing its sufficiently mangled.