Mimi, CB isn't being threatened- YET. I think they went after the store in hopes of settlement, and not looking for a court appearance. Again, only by my interpretation, the store wasn't at fault, and dealt in good faith.
The thing is, if they go after a mfr., the mfr. CAN'T settle - well, they could, but then a precedent is set and they will go after the others as well. The mfrs. know this, and will be almost FORCED into a court case in the hopes of a win.
Unfortunately, this isn't just about the mfrs.: If this "middleman" case somehow shows merit, why not go after the little KJ? Since they DO own the music, unlike the mfrs., they CAN possibly win in court, though it would be VERY tough to prove intent if the KJ has and uses original discs bought in good faith. I don't know what the outcome would be for those who have media shifted.
Now, a KJ might cover him/herself by demanding that all discs come with U.S. licensing documentation for each track from the mfr.. Unfortunately, very few would be able to provide it.
SC has stated flat out that their licensing is only from the UK ( which is why paying THEM licensing fees is ridiculous).
Songs named in this particular suit are among those released by CB
Zoom, Sunfly, Gnome, SBI, Capitol, etc... are all only licensed overseas.
The OOB mfrs obviously have no licensing.
Even supposing all the current mfrs. could get fully U.S. licensed for all new disc purchases, what about the discs ALREADY in your collection? I have CB's Gretchen Wilson disc, and had it before 2010. I have a set of SGBs. I have Music Maestro, plus all the mfrs. named above. What happens with those tracks?
Again, I really don't think they would have much of a case against the KJ without being able to prove intent to defraud.
However, they MAY be able to get an injunction against general usage ( in other words end karaoke) and then charge their own licensing fees from KJs. However the process could stop karaoke for some time.
Before anyone else says it: Yes, this could actually make a HUGE dent in piracy, both manufacturer and KJ. It could also whatever of left of legal mfrs. to raise prices, and of course the legal KJs could do the same.
EXCEPT: By the time it's all done, karaoke could effectively be wiped out due to dwindling music supply and more importantly, by complete show closure until the dust settles.
Please keep in mind that this is all worst case scenario SUPPOSITION, NOT FACT. I'm just pointing out that there is absolutely no reason to "yay" this particular case, whether you are a KJ OR a manufacturer.
What I actually think will happen is that the store will be let off the hook ( if merely buying and selling mfrs. discs) and that the suit will be re-directed to those mfrs. who may have released unlicensed songs.
This is what happened the last time around, and several mfrs. closed their doors ( though many just renamed themselves and continued production elsewhere).