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I've spent time reading that KIAA site as well and I have to agree that the organization seems to be geared to only protect a fraction of the industry chain. The problem, as I see it, is the disk guys want everyone to be legal, but they are trying to find ways to skirt being legal themselves. That is probably why that AZ suit is for trademark infringement instead of copyright infringement.
I know the current disk manufactures don't want to hear this, but the music industry as a whole is missing out on a large segment of sales. They have the original tracks and could easily spin off original music minus the lead vocals and sell their own karaoke. The artists would be able to gain what they deserve from the sales just as they do now when someone buys the complete version. The version "we" would get could not be any more authentic than that, so its a win win. The music industry certainly has the means to police the obvious thieves.
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