It really is true, as daft as it sounds, it really really is true. They are currently calling companies up and asking if they have a radio etc, they are doing spot visits too. They usually give you a chance to buy a licence, but if you refuse then thats when a court order is issued and a big fine :roll:
The logic is that the music is helping your business, either by entertaining your customers or increasing work output by entertaining your employees and as such the artists should share in that profit, thats the logic anyway.
Just noticed your location, maybe you have different rules in the states, but be assured this is true for the UK.