I think the "mom and pop" bars and small bsuinesses should be exempt especially if their main business is not making money from the music.
I have heard of a auto body shop where one of the employees played his own radio at his bay and BMI tried to collect royalties. Beauty shops also are hassled for playing a radio or TV.
So if I'm in my backyard playing my radio and a neighbor can hear it should I be charged royalties?
I understand the writers side but what about the teenage garage band that plays at a local teen center do you want to shut them down because they didn't get the 1/2 penny royalty.
Most of us have played in those teenage bands and didn't worry about royalties.
How about the local bar band that covers your song and someone likes it so they go buy your album. The band should get a commission for selling the album.