Mike - you can do as you wish, but throwing in the towel is not your best solution.

Again, if you are CERTAIN that all of the live music you present to your audience at your venue belongs to the artists who perform; and, that ALL of the recorded music (if any) that you use during the intermission and pre/post-show also belongs to the artist, or is public domain - then you do not have a problem here and a very brief letter from your attorney to the regional ASCAP office should remove them from your back. I'm not a politician so I cannot promise anything; however, I do have some Texas experience here. Cheers.