| Generally the rights performance agencies (BMI, ASCAP, SESAC) collect performance royalties from VENUES, not from musicians. But this goes to recorded music (MUZAK, juke boxes, bartender's boyfriend's 8 track player behind the bar) as well as live performance. Collection generally depends on how well represented these agencies are in an area, larger metropolises generally have more on site visits. I imagine they get updates from vendors who sell jukeboxes, karaoke units, etc. as to has put in music performance equipment.
Next time you're in a restaurant that pipes music in or a bar that has both recorded an live music, look in the window or door as you are leaving (or coming in); generally where they post the little credit card stickers etc, you'll see the ASCAP/BMI sticker too.
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