The only rule that applies is: whoever has the bigger pockets gets to set the rules - just like everywhere else in the mainstream music industry.
ASCAP (and BMI) collects performing rights fees in the form of annual cash payments (called "blanket licenses") from "any" venue that plays music on its premises.
I put "any" in quotes because the fact is ASCAP pays much more attention to fruitful efforts to collect fees. What constitutes fruitful? Well, reps can collect more dollars and more easily from, say, sports stadiums or large clubs or theatres etc than small restaurants.
So many small places get overlooked by ASCAP. They don't pay the license, and they have a jukebox or cd player or live stage in their club.
But the fact remains that ASCAP will cruise small places often enough to sometimes create the above sitaution! And if you, the business owner, are not an ASCAP licnesee, you can get threatened if you are caught playing recorded or live songs in ASCAP's catalog in your place.
I Am Not A Lawyer,
-r
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