Strong arming the little guy

I resently took a trip into downtown stockton and stoped in at a friends restuarant. My buddy runs the Beach Hut Deli over in the movie theater plaza off El Dorado in downtown. I had remembered going in on friday nights and hearing live music, but had realized that latly there was no music and the place although steddy was not as lively as it had been in the past. So I asked if they were still playing on the weekends or if the economy was causing cut backs? To my suprise I was informed that they couldn't have live music because if they did they would be sued. It seems that there is a group who is going around telling local establishments that unless they pay, they will be sued for having live music. The racket is based on copyrights. It dosn't matter if you are preforming your own matterial, if you play in public and you havn't payed these people they will close you down in red tape and litagation. They believe that no one can possibly know every song and so if they get word that a busines has live music they come in and tell you to pay or they will sue you . I think that sounds abit like extortion just covered by a loop hole. That was the general idea that I got from the Beach Hut. If anyone has heard about this practice or if I havn't got all the facts straight please fill in the gaps. It just sounds kinda fishy.