Potential punishments for operating a pirate karaoke system of any kind are fairly severe in Hong Kong.
Under local copyright law, “[A]ny person who, without the license of the copyright owner of a copyright work, possesses infringing copies of a copyright work for the purpose of, or in the course of, any trade or business with the view to it being used by any person commits an offense. The maximum penalty upon conviction is a fine of $50,000 (US$6,400) per infringing copy and imprisonment for four years,” Hong Kong Customs notes.
Those who engage in unfair trade practices, “including making false trade descriptions in relation to service, commits an offence. The maximum penalty upon conviction is a fine of $500,000 (US$64,000) and imprisonment for five years.”