Follow Up: Karaoke pirates? Knox bar named in lawsuit says "no way"

Late Thursday afternoon, an attorney for Sound Choice Studios confirmed to 10News they plan to drop their lawsuit against Macleod's.  He said an investigator working for Sound Choice entered Macleod's and mistakenly thought a CAVS System, used to play general music in the bar, was being used for karaoke.

Macleod's says they're no karaoke pirates

For almost a decade, Jim McGaha has sat center stage for some of the best and some of the worst music on the University of Tennessee's strip.

"They do the same songs over and over again a lot," he said. "I just do it for a little money to supplement retirement."

As 10News first reported one week ago, a federal suit accuses McGaha and the bar that hired him, Macleod's of trademark infringement. Three Knoxville bars are named in the suit, as well as 11 Nashville bars.

The lawsuit has Macleod's and the 64 year old karaoke jockey fuming.

"I was just flabbergasted, it surprised me to be honest with you," Hershel Earls, the owner of Macleod's said.

Earls said he got a copy of the lawsuit in September.

"I said, 'Jim, I got this lawsuit in the mail about karaoke and piracy,' and Jim said, 'well, I don't have anything that's illegal'," Earls said.

"I've been honest all my life, I'm not going to stop being honest at 64 years old. I'm very, very offended at Sound Choice telling me I'm dishonest," McGaha said.

In many cases, Sound Choice Studios says their investigators went into bars and saw illegally copied music being played on a hard-drive attached to a karaoke jockey's sound system.

"I'm not 100% sure that their investigator has actually been in my door. There is no way he could have thought we had a computer, watching him (Jim) put discs in," Earls said.

James Harrington, an attorney for North Carolina based Sound Choice Studios said he could not detail the investigative methods used that identified Macleod's as running illegal karaoke.

However, Harrington said he believes the suit does have merit.

"We would never sue someone who we didn't think was infringing," Harrington said.

In all, McGaha has nearly 7,000 songs on 536 discs. He says he has never downloaded a song for karaoke, traded music with another karaoke jockey, or used a hard drive for music at Macleod's.

Sound Choice has offered an audit to Macleod's where they would basically ask to see McGaha's music collection. Earls says he's not necessarily opposed to that, but first, he wants to know how Sound Choice's investigators came to think he was running illegal music.

"Once they answer my questions, we'll settle their questions and show them the discs we've got," Earls said. "I'm very upset, it's portrayed us to be dishonest. That's not good for anybody, it's portrayed Jim to be dishonest. This man has 600 CDs here at an average of 20 dollars a piece."

One of the three Knoxville bars named in the suit, Blue Chips in West Knoxville has settled outside of court. The bar would not comment when contacted by 10News, Harrington says they settled with Sound Choice for $5,000.

Macleod's says there is no way they'll do the same.

"I know I'm not going to play no settlement, I don't have anything to settle on. We've not done anything wrong," Earls said.

"They're not going to get anything from me. I've not done anything wrong," McGaha said.