FWIW, the copyright law article that appeared in the Sept. '05 Stereophile says this about fair use under the Audio Home Recording Act of '92:
I think the main point though is that whatever the law says or appears to say, or doesn't say, law enforcement and copyright holders clearly have never been concerned with situations like Herman's. P2P file-sharing is the issue.
"Title 17's 'First Sale' provision is intended to limit the copyright holder's control over the disposition of the protected work to the first sale. That is, once one buys a painting, a book, a CD, or another protected work, the purchaser gains the right to sell, give away, or otherwise dispose of the work. If the work is sold to another, that individual then gains the right to dispose of the work, and so on.As you can see, the question of whether the owner of a copyright-protected work can sell the work but retain copies they've made is not directly addressed. Whether this is the fault of the article, or the law, I don't know. (The article also notes that the Digital Millenium Copyright Act prohibits bypassing copy-protection in order to make copies, but that this is a separate violation and not copyright infringement per se.) If this is a complete representation of the law on the matter, then it seems to me you'd have to make the argument that selling the work while retaining a copy amounts to illegally "giving" or "selling" the copy to yourself for it qualify as a violation, a bit of a logical contortion but then what are lawyers for?
"There are some important caveats to the First Sale provision. First, it does not apply to a copy the purchaser makes. For example, if one purchases a CD and then makes a copy (or copies), as permitted by the AHRA, one cannot give away or sell the copies. Second, there need not be any money exchanged for a copyright to be infringed. For example, if one were to copy a book in its entirety and give the copy to a friend as a gift, one would most likely have committed an act of infringement. Ditto for a CD. In other words, if you have ever burned a CD for friend, you have broken the law. While the recording studios [sic -- author probably meant record labels] are not thrilled by this practice, they have tended to turn a blind eye to it. But now it's time to turn to the heart of the matter.
What keeps the record labels up at night is the downloading and sharing of MP3 files...it is an act of copyright infringement to share copyright-protected music over a peer-to-peer network without the copyright holder's permission."
I think the main point though is that whatever the law says or appears to say, or doesn't say, law enforcement and copyright holders clearly have never been concerned with situations like Herman's. P2P file-sharing is the issue.