From
Technical Support FAQ:
Band-in-a-Box®
"12. Who owns the songs that I create with Band-in-a-Box®? Are the songs copyrighted?
The arrangements made by Band-in-a-Box® are yours, and your songs may be used freely as long as they don't infringe upon the intellectual property rights of others."

Your originally stated opinion concurs with the statements from PG Music.

As to your:
"I also think it's very telling that PG Music is Canada based. If they were US based this would have probably already became an issue by now."

Get over yourself. Canada isn't tax haven come copyright black hole. PG Music states, clearly, that what you make is your own unless you're using someone else's property. The company also asks that the individual artists recorded for ReaTrack not be named.

HOWEVER, when you think about copyright law are you doing it with reference to the contracts, to the advice of a legal professional or are you chewing your cud?

Your producer is looking for assurance. Show him the statement from FAQs and be done with it.

Cheers
rayc
"What's so funny about peace, love & understanding?" - N.Lowe