As I understand it, in the US, every establishment that plays a radio, a jukebox, or has live music, is supposed to buy a license from BMI & ASCAP. The theory is that the license fees protect the untraceable royalties that come from such public performance. How much the artists actually get from these fees is anyone's guess. There have been instances of things like, Pop's Barber Shop getting sued by the performing rights organizations because he was playing a transistor radio on the counter and didn't have a license.

Although, I worked at an ice cream store just 4 blocks from Music Row for years - we had a stereo in there, no license, and no one ever said boo.

The PEL issue sounds to me like it's someone just wanting to get their hands into your pockets.