A government advisory group has criticised the 2003 Licensing Act for threatening the future of live music in small venues.
In a new report released on Wednesday, the Live Music Forum said that small-scale events are suffering as a result of the law.
The legislation increased the regulation facing venues putting on live events, with the Forum set up to monitor its impact.
And overall it said the effect had been broadly "neutral" on the number of concerts.
However it warned that smaller venues were suffering from increased red tape.
"What we have uncovered is that very, very small scale live music events would appear to have been directly impacted upon," chairman Feargal Sharkey said.
"Everybody just needs to stop for a second and think - are we trying to build a society where a bunch of elderly gentlemen can't sit in a room above a pub singing songs to each other without someone telling them they shouldn't?"
"Of course public events do need to be properly controlled, but we believe that a pub putting on an acoustic folk trio, for example, should not need a licence," he added.
"That small acoustic gig does not impact on crime, disorder or public safety so should not fall under the remit of the licensing laws."
Licensing minister Gerry Sutcliffe said welcomed the "many interesting and challenging ideas on how the UK's live music scene can be further supported".
"Live music makes an immeasurable contribution to the UK's cultural and economic life," he said.
"That's why we set up the Live Music Forum - to advise government on how we might better support this important industry."

Dods Parliamentary Communications Ltd