I think you're correct, that Lonehill operates out of an area with a different copyright law.
So it's not illegal for them to rip off the lps and sell in THAT zone. It's still therefore, I think, technically illegal for them to be sold in the US and maybe other markets. The labels have to go after the distributors and sellers in the US if they go after anyone. . . .And that's dicey business I would bet.