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From the Where2sing.com forum:

Jason... the story you've been tracking in this forum is the reason that Capital has made their announcement, and is similar in wording to the email sent to the host in question. I am undecided whether Capital's stance is a good one - in that I could hardly believe that any karaoke disc manufacturers would give their permission to allow what amounts to unpoliceable bootleg copies - whether or not APRA/AMCOS sold someone a licence.

As I understand it, the APRA/AMCOS licence passes royalties back to the original songwriters/lyricists of the tracks being copied (hence the licence price depends on the number of tracks being copied), and is approximately equivalent in value to what the karaoke companies would have paid APRA if they had manufactured an extra set of discs. And in that regard, the Capital $10 replacement price includes not only the cost of the disc, the mailing (overnight!) but also the APRA licencing; and if all karaoke companies did it this way, the host would save the considerable cost of the APRA/AMCOS blanket licence.

In essence, the APRA/AMCOS licence is a non-issue. APRA gets the same money whether the original manufacturer makes more discs, or whether someone else makes another set of discs. The real issue is whether the manufacturer of the discs is happy to have non-original discs floating round. I suspect that Capital is alone in thinking this through logically..
Submitted by David on 03-11-2005

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