As the owner of an album I have the legal right to make copies of that album for my own use. The artist and others are not compensated for each additional copy I make.
Yes you do have that right but you have misinterpreted what I said. I never said YOU couldn't use it, I said you couldn't use it at the same time others are using it. You are grasping at straws. You can make as many copies as you want for your personal use. It is obvious that no matter how many copies you make, you can only listen to one at a time. So even if you have one in your car and one at home and one at the office and one on your ipod for air travel you are only using one copy.
It is when one person pays and multiple people benefit that it becomes illegal.
It is only illegal if I try to distribute the copies.
Exactly, and thanks for making my point. There is absolutely no difference whether you keep the original and distribute the copy or keep the copy and distribute the original. You have taken one legal copy and turned it into 2, one legal and one not.
If I made a copy of that software prior to selling the original, it is not illegal to still use that copy.
That is ridiculous, of course it is illegal. Read the license agreement. If what you say is true then Microsoft would sell one copy of windows and everybody would just pass it around.
This doesn't mean the use of the legally made copy is illegal, only that the software maker doesn't want you to do it.
That is so blatantly wrong I don't know where to begin. There is absolutely no circumstance where it is legal to use one copy of a software program on 2 computers unless it is written in to the license agreement, and the vast majority of software is licensed for use on a single computer. Even the phrase "legally made copy" is silly. Ask Microsoft how many legal copies you can make of Windows. I bet the answer is zero and it has nothing to do with how diligent they are to build in copy protection.
This is clearly a case of what you think the law should be rather than what it is. You have every right to disagree with the law, but what you describe has been tried in the courts and no matter what you think it should be, it is illegal.