Naemanson, I'm not sure that I have this right but the way it was once explained to me, more than 2 people playing at the same time constitutes entertainment. Presuamably you could have a paid act, say electric guitar, backing tracks, etc or hire a DJ who is only there to entertain the pub and not come under this law wheras having 3 people sitting down, playing accousitc music and largely entertaining themseves would be require a licence.

Can someone confirm this or explain otherwise.

Jon