1.) It's
not their track, only their recording - and CB is not entitled to any royalty... so what damage are you going to sue me for?
2.) The iTunes TOS is a contract between me and iTunes
not CB.
3.) My ASCAP/BMI license supercedes the iTunes TOS with regard to public performance.
It bears repeating here:
Any venue harrassed by a karaoke manufacturer over "public performance" as an unauthorized "commercial use" should immediately contact their ASCAP or BMI account representative and request a review and opinion from the work's original publisher/author agency. They will in turn re-visit the relationship of the karaoke licensee in question. KJs and DJs are not without representation and power in these matters.
I won't speak to the practicality of making your own karaoke tracks but, for live DJ use I have on occassion contacted artists directly with a particular need/use and they often provide a free copy of the work in question, or direct me to where I can obtain one. This permission supercedes any one else's claim on my right to perform the work publicly.
Stay in School Chartbusterette.