Comment depends on definition and also locale (Score 1) 84
I'm a music major and have studied copyright laws several times. Public performance is usually not applicable to a LAN party because, unless there are tournaments with prizes and tickets, nobody is "performing" for anyone else. the intellectual property of the companies, UT2003 for EA for example, is not being displayed to a group for profit or any other purpose. Each individual is using their purchased(supposedly) product for his/her own personal use and that is the extent of the use at most LAN parties.
Also, depending on the room you are using, it may be sanctioned for public performance without attaining permission. Recital halls and auditoriums at colleges are such sanctioned areas where music and other arts can be performed without worry of infringement. Restaurants and coffee shops also work this way, anywhere there will be live music or copyrighted recorded music. They have to pay a yearly fee to be allowed to play cds and special radio stations and also have live performances in there venue. Imagine if a coffee shop had to attain the copyright permission for every piece of music that is ever heard in its space! There are laws to account for that and i think this might be applicable here. It seems to me that a LAN party would be definied as a live performance of a copyrighted work if it had to be classified as a public performance, and the hall/room you're trying to have the LAN party in could be covered for public performances and you won't have to worry. This is assuming though that videogames are under that clause for public performance spaces, which i admittedly am unsure of. Might give you enough bullshit to feed the people in charge though so they leave you alone, since we've all been to LAN parties and no copyright is not a factor at all.