This page is here to discuss the current issues going on in the world of Karaoke.   To put it mildly, Karaoke and the Karaoke Scene is a mess right now for publishers, disc manufacturers, karaoke hosts and karaoke companies.

Statement of fact. - I am not an attorney and this page represents my opinions based on a GREAT deal of research.
I have consulted and gotten many attorneys' opinions as well, however, all of this is purely speculation as there has never been a case of Karaoke format shifting or Music format shifting ruled upon in any US Court.

Format Shifting would be putting a CDG's content into a hard drive, DVD, or CDG backup.  The Digital Music Industry has become a multi-billion dollar industry, and one of the largest winners in all of this has been Sound Choice who is one of the largest supplier of midi style Cell phone ring-tones. 
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Sound Choice is the leader and the creator of the best quality karaoke disks for years now.  They are being sued and have been sued by numerous music publishers for violating their clients copyrights. 
Current Sound Choice (Slep-Tone Lawsuits) - Click on links for copies of legal paperwork and filings. (All public record documents)

1. Sulit v. Sound Choice Inc et al - Copyright infringement - still in progress
Case History

Meanwhile Sound Choice and Stellar Records (Pop Hits Monthly) are threatening / harassing clubs and karaoke hosting companies in many markets and telling them that any "hard drive based" system is a violation of the law and that if the clubs do not get rid of hosts and hire hosts using original CDG's only they risk losing their liquor and or business licenses and risk fins of up to $10,000 per song on computer hard drive systems.  
News release from Sound Choice - Click to view
News release form Stellar Records - Click to view
Content from Sound Choice certified letter to bars - Click to view
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So let's talk about the laws that exist and what they cover. 

1st thing mentioned is US Copyright laws (17 U.S.C. §§ 102, 201, 201d) so I suggest you click on the link and download your very own copy.  This is an adobe acrobat file and you can search it for text.  I recommend that you search for the word "karaoke" - It does not appear!.  next search for the word "graphic" - it does not appear!

Next thing mentioned is the Digital Millennium Copyright Act (DMCA, title 1, and 17 U.S.C. §§ 109, 117). so I suggest you click on the link and download your very own copy.  This is an adobe acrobat file and you can search it for text.  I recommend that you search for the word "karaoke" - It does not appear!.  next search for the word "graphic" - it does not appear!

Sound Choice have over the years through SPIN and KAPA, created their own funded organizations to sell thier opinions as being the actual law.  They have represented Karaoke first as being Computer Software (until they realized you had absolute rights to create backup copies of computer software) then changed their mind and went back to phonograph recordings and then switched to trying to represent them as being motion picture soundtrack recordings and now have switch back to the phonograph representation.  Karaoke is by it's nature a copied non-artist representation of a song with graphic lyrics.  It needs to be addressed on it's own.  As of now it is not addressed as it can be logically asserted that it does not meet the criteria for any of the other classifications.

So looking at the above statements, if you were to state that this law pertains to the karaoke industry it would need to be applied via case law or actually ruled upon in a an actual court.  If you check Sound Choices forums I actually stated this to them. 

There is NO LAW that SPECIFICALLY deals with Karaoke disks.” - egodfrey
This is correct (as far as I know). BC - Sound Choice, Studio Manager.

Now BC went on to assert many of his opinions after this, but once again, the only factual statement is that there has never been a case ruled on.  ANY other content is speculation until it is ruled upon in a court of law.  Please feel free to go to Sound Choice's Karaoke Forums to read both viewpoints.
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Let's look at how an actual law firm interpreted these items:

Please see www.IPJustice.org - Entire article - http://ipjustice.org/wp/2007/02/22/karaoke_legal_myths/
Here is a PDF file of this document as it appears:

This is based on an original article that appeared several years ago:
Digital Copyright Question: Fair Use of Karaoke CDG's - Click to view article

Bottom line is that when it finally goes to a court this decision will hinge on the definition of "Fair Use" 

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Now let's get back to some facts. 

1. The Karaoke industry is being damaged severely by pirating, illegal copies, illegal downloads etc.  I will never disagree with this and you would be hard pressed to find anyone in the industry who does not agree with this.

2. If you are making copies of an original karaoke disc and selling them...on hard drives, burnt discs, DVD's, Super CDG's.. whatever format...  you are breaking the law! No disagreement here with that viewpoint!

3. If you are buying 1 copy of a disc and you are then putting that on a hard drive or burning multiple copies for use at  shows... you are breaking the law!  Anytime you buy 1 copy of a disc and make multiple copies to be used at simultaneous venues, you are displacing a sale and taking money away from the manufacturer.  No disagreement on this statement.

4. Downloading from any shared site without a legal license and payment per song is a violation of copyright laws.  Many file sharing sites have popped up and are rampant for providing songs at no cost, which displaces a sale. This is illegal.

5.  Buying a hard drive loaded with songs instead of buying through normal channels (manufacturers) is displacing sales and is illegal.. Once again, no argument.  This takes money away from manufacturers and artists and it gives companies music with nearly no cost allowing them an unfair competitive advantage in the market.

6.  In all of  these areas we fully support any manufacturer who is trying to keep the industry legal and fair to all hosting companies, artists, singers, etc.
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Now for some opinions. 

1. These are our opinions and do not represent any factual content.  This is what is considered gray area until there is a legal case to support it or to contradict it.

2. We believe that if you have purchased a work of art (music) in any format, you have a right to protect it in regards to security, archival, ease of use, archival by putting it into a digital format of your choice**.  However, you CAN NOT make multiple copies of this work for use on multiple systems.  If you own 4 Karaoke and or DJ systems that are out working, events, you must purchase 4 copies of the musical work.
** with the caveat that if you are downloading music from a paid site, you must adhere to their terms of service, which include, no shifting of the format to any style other than those they list.

2. This directly conflicts with the stance taken by Sound Choice and several other manufacturers.  We feel that they are working on a noble and almost impossible cause, but need to make an exception for those maintaining 1 for 1 copy integrity. Sound Choice originally hired Joseph Senter and his SPINorg.com organization to watch guard their position.  After a few years, they disagreed with Senter, who began promoting CAVS and digital music downloads.  they then formed KAPA which is an organization run by SOUND CHOICE.  Sound Choice often validates their points by quoting or referencing KAPA, but it is important to understand that KAPA is Sound Choice's property.|
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Let's talk about Sound Choice's actions:

We have been in the karaoke industry for about 12 years and we have been buying discs in dramatic fashion that entire time.  We did use original CDG's up until about 4 years ago.   I have over the years personally reported 5 different hosts who I know were using illegal copies with NO originals.   I provided names, clubs addresses, night of shows and estimates of how many discs we are talking about.

SPIN, KAPA, Sound choice DID NOTHING!

I have given them name, physical address, e-mails on several individuals selling hard drives.  I offered them the hard drive as evidence.   It contains 105,000 karaoke songs and the ENTIRE Sound Choice catalog.  

THEY DID NOTHING!

I have sent them user name and info for karaokeinfo.com and pleaded for them to bust them…. NOTHING!


Fair Use is defined as for private use only… However my Karaoke disks actually say not for us for public performance.  Sound Choice originally was selling those almost entirely to KJ’s.  They have admitted. “that is not what we meant. "

Sound Choice changes their opinion on how to interpret law as to fit their current needs.  In 1999 they stated that you could make a back up copy of each disk.  Then they changed their mind and stated that all of us who had followed their very own instructions had violated copyright law.  I have the article printed from Sound Choice’s FAQS page in 1999 that states you can make one copy for backup purposes and in the event your original is lost or destroyed you can use that at a show.   IT IS OFF THEIR WEBSITE!

Bottom line (my opinion)… If it ever comes down to it format shifting will be ruled to be fair use for many reasons.  Read the article above ipjustice.org for more info.  

Next Bottom line… Sound Choice is suffering as technology makes Karaoke less expensive and they are being sued because they did not obtain legal rights in the first place to most of their disks.  They claim to have paid compulsories after the fact, but why do you think they have pulled the Eagles disk , Celine Dion disks, Alanis Morrisette, and many others… because someone raised a fuss after the fact and forced them to since they never got legal permission.  They are trying to stop us from format shifting so they can charge us more money and sell us the same song in digital format for way more than we paid for it in the first place.

I have no spoken to 3 IP attorneys regarding this matter.  They say it is entirely civil.  Sound Choice would have to prove how you have damaged them and caused a loss of revenues.  They also say it would be comical for Sound Choice to try to drag you into court for violating their copyright on a work that they never obtained legal permission to release in the first place and that they are not the actual artist that wrote the work.   See above legal cases!

We are in our 5th year of boycotting Sound Choice disks.  We are buying all of the companies that are on Super CDG and we are buying all of the Panorama Monthlies as they are releasing them in mp3+G format to start with so there is no repercussions about format shifting.  Stellar Records is working towards a licensing program for format shifting to computer and we buy their disks as well

Let's look at the letter that Sound Choice is sending to bars in detail:

The letter below is being sent in the Phoenix and Scottsdale area. Our letters are not a hoax and we are taking action.

If you feel you can help in some way please give me a call at 1-888-210-6100. Thanks for your concern,

With Best Regards, Shelby W, Wood Business Affairs Director Sound Choice Multimedia

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Dear…..(Bar Owner)

This letter is to inform you that we have received information reporting that your establishment has been hiring or providing entertainment that violates certain US Copyright laws (17 U.S.C. §§ 102, 201, 201d) and the Digital Millennium Copyright Act (DMCA, title 1, and 17 U.S.C. §§ 109, 117). The specific complaint is that you have contracted with a Karaoke host/company who has a Karaoke music library, or have purchased your own Karaoke music library, which contains illegal copies of Sound Choice copyrighted music, either on “burned” CDGs or DVDs, or computerized copies.
Editorial Comment: Sound Choice is basing this on speculation.  Sure they have long contended that any copy of any kind is illegal... great, but as covered in great detail above... that is their opinion.  -  They have done no discovery, they have done no due diligence to investigate the facts.  the individual bars getting this letter are getting it because according to Shelby Wood (author of the letter) there is a "whistle blower" in Arizona that told them this KJ is illegal.  She never checked but the one company that ever got busted for being illegal in Arizona is the company that is calling her.  they are doing so because their own business practices have nearly put them out of business and they have no other means to fight back.  Many of the bars may have illegal discs, but many of them do not.  We only use 1 for 1 digital files and we have literally thousands of discs and well over $100,000 in receipts to prove it... Of course Sound Choice never called us to ask and they refused to return my calls to discuss.  Seems a bit negligent to send out a letter of this scope without doing some homework on the companies you are making accusations against.

As the owner or manager of an establishment that uses Karaoke entertainment, you may not understand how serious this offense may be. Karaoke hosts who use illegal copies of music also put your business at risk. Some of the consequences that you could face include:

¨ Fines up to $250,000 and/or up to 6 months in jail per occurrence (per occurrence is per copied song, and per each time a copied song is played).  Editorial Comment: Not only is there no case in existence or adjudicated that deals with a KJ or DJ format shifting music, there is certainly no case that would hold liable the company that is paying the host to perform a Karaoke show without any knowledge of their legal status.  To obtain any of these fines Sound Choice would have to prove that the bar knowingly and willingly financially harmed Sound Choice.  In retrospect it would be easy to prove that the bar if playing a Sound Choice track benefited by receiving free advertising of the quality of their karaoke works.  This in mind this would NEVER hold up.

¨ Confiscation of equipment used to play the contraband music, such as speakers, players, and amplifiers that may belong to your facility.
Editorial Comment: Only with a court order which would require a great deal of proof (none of which has been investigated at all) and a legal precedent to base the seizure on.
¨ Potential risk of the loss or suspension of the liquor license for bars/clubs using contraband music or contracting with KJs using contraband music.  Editorial Comment: We called and spoke to an official in the Arizona Liquor licensing board.  They refuse to have their name attached to this, but they stated very clearly... "There is no intent now or any time in the future to affect the liquor license of any bar in Arizona based on the legality of an entertainer's music selection.  This is not our area of jurisdiction and if someone is making such statements it is not based on any information we have shared with them"

It is our hope that, by providing you with this notification, you will be able to protect your business. Compliance is easy. The law requires all Karaoke hosts to use original manufacturer produced music formats (CDGs, DVDs, Tapes, etc.). We are including a flyer with information about how to identify illegal copies of CDGs. If your current karaoke hosts are unable to produce and exclusively use original productions of their music in their original format, we recommend that you hire hosts who do comply with the US Copyright regulations by buying and using original Karaoke products. Editorial Comment: Once again, Read the documents above.  The term Karaoke, CDG or anything relating to Karaoke does not appear anywhere in the documents ,which makes this pure speculation and opinion.

Sound Choice music is never licensed for use on any hard drive, so any Sound Choice songs on a hard drive are illegal copies. The publishers do not sell licensing for computerized music. This is to protect the artist rights to royalties. To do so, makes you in violation of the law as well as copyright and trademark infringement of Sound Choice products. Sound Choice does not sell hard-drives for this reason. The fines start at $1,000.00 per song working in conjunction with the FBI for publishing rights of the artist.  Editorial Comment: This opens a whole can of worms.  Lets start with the first sentence.  you can go to Sound Choice's website right now and you can buy downloaded copies of Karaoke tracks to your IPOD.  IPODS are hard drive systems.  They also sell a digital subscription service that can be used via Dish Network.. This is a digital file downloaded and used via their device.  They also sell a preloaded hard drive based system via DOPI Karaoke that is used for rental purposes: http://www.dopikaraoke.com/home/exampleuses/  Where can I find these hard drive downloads..  Pretty much anywhere on Sound Choice's website:
http://www.soundchoice.com/karaoketv.htm
http://www.soundchoice.com/audio.htm
http://www.soundchoicestore.com/dopi-karaoke-system-c-4-p-1-pr-32633.html
http://www.soundchoice.com/video.htm
Let's think about this, based on the lawsuits above it appears MANY artist have problems with the way Sound Choice does or does not pay royalties.  No judgment here, just a statement that obviously there is an issue if all these publishers are suing? Fair enough.  Meanwhile artists are receiving funds for the music being played in the form of ASCAP and BMI Fees.  So it appears Sound Choice is making a large issue about songs they may or may not have rights to in the first place... Now I am trying to be careful in what I say or how I say it as that is what an educated person does.  However Ms. Wood of Sound Choice should follow the same rules as they clearly DO LICENSE MUSIC FOR USE WITH A HARD DRIVE.  They also are not taking such great care of the artists as witnessed by 4 legal cases and one of those case is about violating a patent for the digital use of music files (on a hard drive)... Scratching your head yet?

It is not our desire to take unnecessary legal action, and hopefully this information will enable you to insure that your karaoke hosts are operating legitimately. It is our intention to follow-up on this report and to make a determination if the violation has ceased. If the violation has ceased it will no longer be necessary for us to take any further action. Please contact us immediately at 888-210-6100, if you believe that the information we have received is in error and/or to resolve this situation. Editorial Comment: She is correct here.  as stated above Sound Choice has been handed all kinds of evidence and is not doing anything with that information.  They would prefer to bully, harass and intimidate people and really do not want this to go to court as they might lose and then they would not be able to threaten like this any longer.

Thank you for your cooperation and compliance. Editorial Comment: YOU ARE WELCOME!
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We are urging companies to join the AKJA ( American Karaoke Jockey Association )  This is a national Karaoke Alliance (and part of the ADJA) to protect our rights and take action against such intimidation and threats as appear above.  Please e-mail us for more information and how you can join our group...  If you are not paying for legitimate copies of your music and can not provide proof of such, don't bother to contact us.   This is about protecting technology capabilities, not defending people who are stealing music.