"And Mr Moe, if I play White Freightliner, I have few objections if a percentage of the fee goes to the estate of Townes van Zandt. But the fact is, it doesn't work that way. ASCAP monitors radio playlists at random, and money is paid to artists on the basis of the frequency with which an artist's work is played. So Lady Gaga is much more likely to get it. "

That statement is misleading. I would almost guarantee you that the estate of Townes Van Zandt IS getting royalties from ASCAP. That fact that Lady Gaga gets more is based on the fact that she sold more recordings and her concerts have significantly higher attendance over those who attended Townes Van Zandt concerts in his lifetime.

ASCAP randomly monitors radio stations as well as venues of all types to determine percentages of artists being played. Television's Nielsen ratings are similar - they do not count every household, just a sampling.   Fair or not, they do attempt to work out percentages. I know many singer-songwriters who receive checks from ASCAP.   Unfortunately, I also know many artists who feel they can "borrow" songs from other writers without paying for it.   I also know many people who think nothing of making illegal copies of songs. Ultimately, the artist loses on the deal.

The fee that ASCAP is asking is usually negotiable, and usually within the means of the operation. $400 a year comes out to slightly more than $1 a day if the operation is open 365 days a year.   I would imagine that the owner of the coffeehouse is making much more than $400 per year from the artists who play music in the establishment, and from the public that might come in to hear it.

It is easy to paint ASCAP, BMI and others as the "bad guy" when they try to collect what is legally within their right to collect.