When karaoke operators were told that they were in violation of those laws, they were confused.
After all, they were paying a company called Innoform Entertainment for the use of videos, music and lyrics.
Or so they thought.
Which is why, when Composers and Authors Society of Singapore (Compass) sent letters to karaoke operators in July informing them that they did not have legal permission to copy themusic and lyrics of composers into the karaoke-on-demand (KOD) systems, they were confused.
KOD systems are computerised 'jukebox' systems which allow music and videos to be recorded. They play the videos people sing along to.
Mr Desmond Foo, 36, executive director of K-ster Inc, said: 'The letter stated that we have to get clearance from them (Compass) within seven days if we want to continue our business.'
Karaoke-business owners were upset. Innoform represents 11 major record companies here, and charges karaoke operators fees for reproducing the videos of the songs into their KOD system.
The licensing company charges $30,000 for karaoke operators with seating capacities of at least 150, while those with capacities of 39 and below pay $7,000.
Ms Nancy Seah, 40, president of Innoform, clarified that the licence it grants 'is limited to the visuals of the music video and does not include lyrics'.
She added that this was stated clearly in the contracts.
Last year, Compass cracked down on the dance-music industry for copyright fees.
Back then, it charged up to $15,000 annually for a licence that will allow them to play music stored in computerised systems.
Clubs like the now-defunct Barbaablackchic ceased operations because Compass said it owed them as much as $10,000.
Some 40 KTV operators complained to the Commercial Affairs Department (CAD) on Aug 13 against Innoform. They believed that the fees paid to the latter covered all royalties.
But what most operators do not know is that there are three organisations involved - the Recording Industry Performance Singapore, Innoform, and Compass.
A record-industry insider said: 'Publishing rights being enforced are new for us in Asia, and most people aren't aware of them.'
He added: 'The karaoke-business owners who set up their business and who were only just told of the structure must be shocked, and I do feel for them.'
What will happen next? It all hinges on what Compass decides to do.
As of yesterday, CAD has dropped the karaoke operators' case, according to Ms Seah.
