Copyright laws chase Japanese night clubs

Joi Ito mentions that Japanese copyright officials (JASRAC) is now chasing after night clubs that have live bands that do covers.

Strangely, I find this absolutely amusing. JASRAC doesn’t have a clue about if the covers are being played, or how many bands are infringing and not paying to royalties or what not. So the clubs have to pay a “monthly fee” just to cover for this. I know nothing about law, nor copyright, but I don’t see why the night club should be responsible for fees that the authorities are supposed to get from the bands.
Sounds like a bullying technique instead of a good way to pursue copyright. Perhaps it’s JASRAC is just being lazy through and through.
In any case, I believe that this is a case that copyright law should NOT be followed. Bullying tactics remind me of some 1990s chinese kung fu movies, where there’s a gang that asks for “protection” payment from merchants so that they don’t get their establishments trashed.