Don't believe everything you read.
Here's the actual court document (which you should read):
http://www.ilrweb.com/viewILRPDF.asp?filename=atlantic_howell_071207RIAASupplementalBrief
I've seen this posted on so many forums with that basic line that the RIAA says you can't make copy of own CD now. The issue is he put them in a shared folder for KaZaA.
Key quotes:
"Once Defendant converted Plaintiffs’ recording into the compressed .mp3 format and they are in his shared folder, they are no longer the authorized copies distributed by Plaintiffs"
"Defendant unlawfully distributed all 54 of Plaintiffs’ Sound Recordings by making unauthorized copies of the recordings available to other KaZaA users for download."
"In sum, it is undisputed that Defendant intentionally uploaded digital music files to his computer, and that those files were being distributed to other KaZaA users without Plaintiffs’ permission in violation of the Copyright Act."
The best part of the case is if you read further:
"First, Defendant readily concedes that he used KaZaA to download and share pornography files, and that he intentionally stored his pornography files in his shared folder"
Owned by the court system.
Anyways, it's funny how people hate the fact the RIAA goes after them for things that they get the most outrageous quotes and it gets published (now in the Washington Post). The key phrase here is the shared folder. Read the document, and you'll see why it becomes illegal.
EDIT: Also, if you read the defendent wiped his computer of KaZaA and the evidence when he got the letter. Imagine how the court views that...
EDIT 2:
From RIAA website:
"However, burning a copy of CD onto a CD-R, or transferring a copy onto your computer hard drive or your portable music player, won’t usually raise concerns so long as:
The copy is made from an authorized original CD that you legitimately own
The copy is just for your personal use. It’s not a personal use – in fact, it’s illegal – to give away the copy or lend it to others for copying."
It matches exactly the court case. The person put it on a shared folder - which the courts have upheld as violating copyright laws. The RIAA went after them. Guy fought it in court. Lost. Now he owes a buttload ($40,000+).
Whether you like it or agree with it, he broke the law (and the court's have upheld this). I always laugh when people fight it and they lose and have a huge fee after that rather than the small amount the RIAA orginally tried to get. That single mother comes to mind. Where she fought, had no evidence at all, and then owed $220,000.