It is a bit shoddy of the distributor...but it is probably further down the line.
For example Beatspace, which most psytrance labels use, uses Label Worx for digital distribution I think. They are big enough to have bots/lawyers writing cease and desist letters.
So it is the ugly side of the music business rearing its head, and probably nothing to do with any psytrance freaks other than them having to rely in part on the music-industrial complex
They will not sue you, it is not worth it for them, but they might get digital distribution channels to remove the releases since Classic Goa Trax has given them rights to handle digital distribution, and you probably cannot prove that you have such rights any more.
Unfortunately it is unlikely Jos can do much about it even if he seems wiling to.