This is true in a strict legal sense, but in the MB seminar Mr. Slep indicated Sound Choice would not pursue legal action against a KJ if there is a one-to-one relationship between the songs burned to computer and ownership of the CD+G. I believe the gentleman from Chartbuster (can't recall his name) affirmed the same. They're only after those who buy one CD+G and make multiple copies and those who illegally download instead of purchasing.you are able to play the cdg discs. you are nt allowed to copy the discs.
Almost all of the brands that are now "out of business" (Backstage, NuTEch, Standing Ovation, Northstar, StarDisc, Sweet Georgia Brown, Dangerous, All Hits, Music Maestro, Legends, and on and on) were never licensed by the Music Publishers NOR were any of the Super CDGs which are still floating out there (most of which are pirated copies of even legitimate brands).
If a KIAA representative does an audit of someone's disc set or system, we have agreed to "pass" the system, as long as you hold the original disc. HOWEVER NOTE - we are not stating that your discs are "legal", only that you are 1:1 with an original disc; any user of these brands is at risk of being sued by the respective music publishers, however slim that chance might be. (And in MY OPINION it's a very slim chance given that we, as a competing producer, tried to get them to take action for illegal products and unfair competition for a long time and they declined).
However, given the low quality of most of these products, we would only hope that eventually you would switch to a better brand - one that is still in business and supporting the industry.