There is no such a thing as offshore, It's just a trick to get customers. Either way, you'll get fucked if government wants your site down.

No one gives a fuck about small sites, when your site becomes bigger you MUST deal with DMCA, and other copyright organizations. You just MUST remove what they tell you to remove. Or you'll go down.

That's all. Reason because they don't want to sue smaller sites, is because It's not worth it.