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Yeah, many have thought that way as well that have ended up paying quite a bit and some getting their stuff confiscated BY a court ordered judgement against them.
Yes they do investigations, but unless you are using original discs, they cannot tell if your hard drive has actual stuff you shifted or bought off ebay - no way to tell and since SC was never sold on computer format (the GEM series is, but it's different colors than the regular discs), the only way they can distinguish is with an audit. Submitted by the kj or through the courts.
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Why pay for an audit if they are gonna say it's illegal to convert to a hard drive... sounds like the thing to do at that point is just quit... or start using the original discs
What do you do? Take all your originals and purchase receipts to each show in case the karaoke police show up?