It's not just strict DWI laws that make restaurant owners reluctant to stick their necks out when it comes to offering music for their patrons. Unless the musician(s) are playing all original material, you have to make certain that you're squared away with BMI and ASCAP. They have been very, very aggressive in their enforcement in the Lakes Region. (Does anyone remember the "Downtown Lounge" in Laconia? As I recall, they were put out of business after a visit from a rep from BMI or ASCAP resulted in fines that ran into the thousands of dollars.)
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