You do not have to physically possess the original to legally have a copy. If you originally purchased the album and then ripped it to a hard drive, made a CD-R, etc., you have a legal right to do anything you want with that original as long as it doesn't violate the license agreement. The courts basically interpret that to mean you as the consumer don't make an attempt to economically profit from your ownership of the album. This is the heart of the "fair use" argument. Giving away or even reselling the album also have not been construed as a violation of the license. If the copying and reselling as separate acts are legal, then it is hard to argue that in combination a crime has been committed. The RIAA first attacked file sharing and argued that it was directly responsible for reduced sales. They should be happy that people are buying the albums even if they do then resell them. With their track record it not unlikely that the RIAA will try to have Congress pass legislation that does make copying and then reselling illegal.
Here's another sample of what the RIAA is up to -- click here for story
BTW, I am not an attorney and I didn't stay at a Holiday Inn Express last night.
Here's another sample of what the RIAA is up to -- click here for story
BTW, I am not an attorney and I didn't stay at a Holiday Inn Express last night.