MIAMI SPRINGS, Fla. - One small restaurant found out the hard way that a little music can be a bad thing. Chef Perry Margolis would sometimes bring out his guitar and serenade customers with oldies at the Harvest Moon Gourmet Bistro he runs with his wife, Terri. But a performing rights company said he had to pony up for a license or face charges of violating federal copyright laws, the River Cities Gazette reports.

"We already paid a licensing fee to BMI," said Perry Margolis. "I thought we were good." For more than a decade, the pair has faithfully paid a licensing fee of close to $400 annually to Broadcast Music Inc. (BMI), to sing and play the radio in the restaurant.

But because BMI doesn??t hold the license to all songs, Margolis would have to get a license with the other performing rights company, the American Society of Composers, Authors and Publishers (ASCAP).

ASCAP recently sent the restaurant a license agreement asking for $683 in annual fees to play its music. The company also alerted the Margolis??s that they could face legal action if they didn??t comply. Terri Margolis simply pulled the plug on music to avoid any trouble with the company.

Most retailers need to have license to play any music, even the radio, BMI and ASCAP assert. The two companies fine restaurants and other establishments that do not have agreements. Factors determining license fees include what type of music is being played (pre-recorded, radio, TV, and live performances), and how many speakers are in the environment.

More than a decade ago, Congress approved the Fairness in Music Licensing Act that exempted some music uses from copyright fees. For instance, the act exempts a restaurant under 3,750 square feet that plays the radio.