Small Venue Music Licensing Research

I finally researched this and found that it only covers the transmission of radio and television broadcasts.

"While small businesses are exempt from copyright infringement when they play radio and television programs, they still need to obtain performance licenses to host live music performances of copyrighted material or publically play tapes or CDs to their customers. Research does not uncover any other provisions of the copyright act which would definitively immunize public performances of audio tapes and musical CDs in small business establishments from possible liability for copyright infringement. "

http://www.law.umaryland.edu/marshall/crsreports/crsdocuments/rs21107.pdf