It’s a gray area that is different from country to country. Personally (but this by no means a legal standpoint) I believe that as an artist you want as many people to hear your song(s) in the hope of them going out and buying it. As such I think DJ’s provide a valuable service to artists by playing their songs. DJs don’t play that music for their own musical pleasure but to please their audience.
Especially in the “old” days DJ’s would get records shoved in their hands by “pluggers”, people working for the record companies trying to get airplay. So it feels strange to have a vinyl collection that is half free and then paying to actually play it for a crowd, right?
Having said that, I can make an argument for the “other” side saying that a DJ makes money using their music and as such should pay for using it.
Then again we have already paid for the right to play a song when we “bought” it, since you don’t buy the song outright, just the play right.
In some countries you can pay a cover fee, that allows you to play any store/online purchased music as a DJ. In which case it is up to you to comply or take your chances. If all of your gigs are private parties, I can’t see to many people walk in to come and check this out (and ruin a couple’s wedding in the process).
Best thing is to find a specialized lawyer in your part of the world and have him spell it out.
Greetinx,
C.