[Karaoke Meister]

You do or the hosting entity for the party should pay the appropriate fees.

If you contact ASCAP, BMI, or SESAC you can get more information regarding the playing of songs at a block party, etc. Note that this should apply only to a public event. If it's a private event then it's a complete different situation entirely.

On a side note, I had a similar but very different (in some ways) when I asked about licensing from a number of different organizations.

Those that WANT you to play the music in the clubs say things like this:
"Legally obtained mP3s can be played in public venues, provided that performance licensing through ASCAP, BMI, and SESAC is obtained as well." - ASCAP

"ASCAP, SESAC, and BMI licenses the establishment where the performances occur. For example, if you play music in a club, it is the responsibility of the establishment to have the appropriate licenses." - SESAC


However, if you talk with the people SELLING the music you get respones like this:
"We're sorry, but just like yourmusic.com, BMG Club product is for personal use only and cannot be used for business or commercial purposes." - YourMusic.com

"We appreciate your patience as we attempt to assist you with your issue. The legal agreements we have with the various artists and publishers we do business with allow us to authorize use of our music for personal use only.
The quickest way for you to obtain permission for the use of these tracks as you've requested is to contact the labels for the songs in question and pursue licensing rights with them.

We apologize that we are unable to accommodate your request and appreciate your sincerity and honesty in contacting us for your issue. " - eMusic.com

So what's the good news in all this?
The good news is that I was finally able to obtain permission from eMusic as an exception to the End User License Agreement after I spent a lot of time on the phone and shooting emails with them, record labels, ASCAP, Harry Fox and a plenty of others. I was also able to find a site that sold MP3's without the End User Licensing Restrictions posted on eMusic, iTunes, Wal-Mart.com, Tower Records and others. Unfortunately, it's technically an 'import' or 'grey-market' because the tracks are made available through a company outside the US which puts the legalities of using them within the US into question because the licensing was procurred outside the US. Frustrating to say the LEAST!