This is on a BMI FAQ page: http://www.bmi.com/licensing/faq
Q: If Musicians Are Playing Live Music, Aren't They Responsible For Public Performance Fees?
Since it's the business or organization that's benefiting from the performance of music, management is responsible for ensuring that the organization is properly licensed. This responsibility cannot be passed on to anyone else even if the musicians hired are independent contractors.
And this one is from ASCAP: http://www.ascap.com/licensing/licensingfaq.aspx
Aren't musicians, entertainers and DJ's responsible for obtaining permission for music they perform?
Some people mistakenly assume that musicians and entertainers must obtain licenses to perform copyrighted music or that businesses where music is performed can shift their responsibility to musicians or entertainers. The law says all who participate in, or are responsible for, performances of music are legally responsible. Since it is the business owner who obtains the ultimate benefit from the performance, it is the business owner who obtains the license. Music license fees are one of the many costs of doing business.
So wouldn't that keep DJs safe in SL?