How do you deal with copyrights if you want to use songs in your game?

Title explains it all.

If you are not a big budget production house the best bet is something like http://incompetech.com/

You probably won’t have much luck getting rights to big artists tracks but try incompetech and google “free game music”, “royalty free game sound” etc and you can find some pretty good stuff, some for free and some with $10-$100 license purchases and no royalties.

How about compose your own? Then you are free from copyright.
If you cant buy cakewalk, there are darkwave studio, LMMS that will do the job. Or you can record your own.