The use of an unlicensed copied product is illegal. The copyright laws are very clear about the fundamental legalities of copying copyrighted materials which includes many other products than music. Basically, the law permits you to make an unlicensed copy of a copyrighted disc for your OWN PERSONAL USE only. If you want to listen to the copied disc in your home or your car, that is legal. You may not make an unlicensed copy of a disc for ANY COMMERCIAL USE. That means that you cannot make an unlicensed copy as a gift, as a promotional item, for sale, for use in promoting another product, for use in a show or publication, and a myriad of other commercial applications. If you are using the songs on a disc for any reason other than your own personal listening, you must use the original disc.
IN ORDER TO USE A COPY OF A COPYRIGHTED PRODUCT, YOU MUST HAVE THE WRITTEN PERMISSION OF THE COPYRIGHT OWNER. Many manufacturers have Licensing Agreements for the use of their products in various applications. If you want to use a song or disc in a commercial application, you will need to contact the manufacturer and apply for the licensing rights for your application.
http://www.karaokeantipiracyagency.com/faq.html
George