Traders are divided over being charged £60 to keep A-shaped advertising boards outside their shops.
Some shopkeepers in St James's Street, Kemp Town, Brighton are taking the boards indoors rather than pay up to the city council.
But others have joined residents' groups in demanding better control of the A-boards to make it easier to walk along the street.
The new annual charges follow the introduction of a similar scheme in George Street, Hove, last year.
Licensing officers hope to spread the A-board charges citywide by Christmas.
But Stuart Richardson, who has had a board outside Richardsons hair salon for seven years, said: "It's out of order.
"The pavement outside is about 8ft wide and the board takes up about 1ft.
"Business is hard enough without having these extra charges on top of our rates. I'm just going to take the board off the street."
Paul Daltry, of Haircraft salon, said: "It's a diabolical liberty. We've had an A-board for 20 years and never had any problems."
Roger Cross, of the Hot Potato cafe, paid his £60 last week after being warned he could be taken to court.
But he said: "It did cross my mind just to take the board in. It's not so much the money, it's the principle."
Traders who pay will have the pavements outside their shops marked to show where their boards can go.
They will also have to display their licenses in shop windows.
Tom Mannouch, of Threshers in St James's Street, said: "Something had to be done to improve access for the good of the public.
"Some shops go too far with their displays."
The Disabled Access Group and the St James's Street Action Group raised concerns about the risks to elderly and disabled people and those with pushchairs.
Alan Bond, chairman of the St James's Street Action Group, said: "We want to see the displays as they make the street look lively but there needs to be a mechanism of control.
"St James's Street is very narrow and it's made worse by some traders who put out four or five A-boards."
Ian Denyer, the council's highway licensing officer, said the licenses should give traders greater insurance against people claiming for accidents.
He said: "Some local authorities just send vans round to confiscate A-boards. We're trying to compromise so shops can trade successfully and there's safe access for all."
The council wrote to 60 traders in St James's Street asking them to apply for licenses.
About half have responded, either to apply or ask for more details.
Similar charges are being imposed in part of Kings Road, Brighton, and in Rottingdean High Street.
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