If "they" are actually after you, no matter what you do, you will need a good music attorney to present your case to them-there are a lot of reasonable options, but "they" are generally after lisensing fees, and won't back off unless you can demonstrate that you are legally right--


To circumvent the need for paying fees, you need to eliminate any activity that would require them,and you need to be able to document it:

First thing I would do is implement and enforce policy of "originals or Public Domain only", and collect written set lists, making sure that each song has the author attributed, or Public Domain.

Next, if you plan on using CD's for background, make sure that you obtain performance clearance from the artists or from the record label, and keep a log of the things that you play--

You will need the attorney to communicate this stuff, and other things that he/she may deem necessary, to the above mentioned "they" --