In response to Guest/Questioner in the post before last:

I'm pretty sure that individuals and bands perform "cover" material all the time, all over the US, without royalties being paid to the composers/publishers. This may not be strictly legal, but I know it's common practice everywhere I know about, including the most highly visible music venues in New Orleans.

I believe that it is the musicians, not the club owners, who are responsible for all the good and bad original material, because royalties represent such a major portion of potential income from music. If you hope to make a living at music, your best bet is to perform (and eventually, hopefully, to record and/or have others record) your original songs.

Technically, you aren't allowed to sing "Happy Birthday" without paying a few cents to Sir Paul McCartney -- or is it Michael Jackson? I've sung it many times over the years and haven't paid once; do you think I'm risking incarceration?