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How I deal with it is I choose to drop the manufacturer's discs who are most likely to try and come after me for that perceived violation. I don't have many to begin with, so it's not a real loss to me.
I would rather do that than go through the alternative hassle. I'm quite sure my venue owners would lose their minds in the unlikely situation I was handed a letter or a lawsuit and would not bother to wait and hear an explanation. I prefer to keep the roof over my head and the food on my table. It's not just all about the manufacturers' survival. There is me to think about, too. And since no one else is thinking of me, I guess I'm the one that has to do it.
I'm thinking of you! Your situation is the same as I have mentioned before. While I may be the only one of US that choose to try and help SC in the regard of Hard Drive sellers, I do it NOT for SC but for myself, because these people make a killing and do not help the Karaoke industry at all. They also usually have regular Mp3's and movies etc..to me that is a catch all...if SC does really go after them, then it would help ALL Karaoke manus and the record labels.