I've known that if one is performing in a 'public' venue, SOMEONE has to be paying royalties and it is usually the venue that pays to either BMI or ASCAP ... I know of at least one case where a musician was playing in a coffee house for tips and either BMI or ASCAP told the owner that a fee had to be paid or performers could only perform 'original' music ...
I've just never thought of the need to pay royalties if I post something on line for others to hear ...
Ah Tony you remember my experience at Java Madness! Eventually a new owner worked something out with ASCAP. I'm not sure what it was, I only played there once after the ASCAP incident. By the way Erika Van Pelt a recent American Idol contestant who made it to the top 10 got her start at Java Madness.
Wiki Erika Van Pelt 
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