Q. May I convert audio files, CDs, downloads, etc., into iPod compatible formats?
Q. Am I allowed to copy audio files (CDs, Cassettes, electronic downloads, and other audiobooks) into iPod compatible formats?
Fair Use and Digital Rights Management (DRM), Digital Millennium Copyright Act (DMCA), and End User Legal Agreements (EULAs)
Disclaimer: This discussion is not legal advice. Consult a lawyer for interpretation. You are responsible for your own interpretation and actions. Suggest you read EULAs, google Fair Use, Digital Millennium Copyright Act, DCMA, DRM, and other key terms contained in this post and read applicable law and practice to familiarize yourself with the issues as a basis on which to base your own and independent decision. Converting audio files to compatible files to use on your iPod is legally problematic.
Under the court doctrine of “Fair Use” it appears that creating and retaining files made from unprotected (i.e., not DRM) CDs or cassette tapes owned or borrowed is legal as long as the original format is in your possession. That is, you must delete the files from your computer and iPod when you yield possession of the originals. Downloads from iTunes Music Store, audible.com, Net Library, and OverDrive are protected under the DMCA, and are covered by end-user agreements (EULA) which the user electronically accepts when signing up for these services. Free NetLibrary and OverDrive downloads, under the auspices of selected libraries, give users a three-week license, subject to renewal. Although it is relatively easy to do, converting protected files to iPod compatible files is subject to the constraints of DMCA DRM provisions.
Fair Use:Courts have held that contemporaneous legitimate possession of an original audio book recording that is not DRM protected entitles "fair use" conversion of these audios for use on your personal iPod.
DRM files have very specific legal protection delineated in the Digital Millennium Copyright Act (DMCA). It violates this federal law underlying DRM for anyone to either avoid DRM or even to disseminate how to avoid the protection. NetLibrary and OverDrive specify allowed uses in their user agreements. OverDrive appears to be more lenient.
Sale or giving away converted files is clearly prohibited under DMCA.
However you interpret DMCA and its provisions relating to DRM and the EULAs of NetLibrary and OverDrive, fair use and reasonable personal ethics dictate your confining use of any conversions to your own personal use, only during the time during which you have originals in your possession, and that you delete conversions from your iTunes library once you do not have the current valid licensed original in your possession.
Wikipedia: "Some types of DRMs have been recently declared illegal in France and the European Community is expected to rule on a ban of DRM systems."
You may find a google search of “legal conversion of protected files to mp3” and similar terms interesting.