@jafreeman, jon2020 et al.
From our "friends" at RIAA:
"Copying CDs
It’s okay to copy music onto special Audio CD-R’s, mini-discs, and digital tapes (because royalties have been paid on them) – but not for commercial purposes.
Beyond that, there’s no legal “right” to copy the copyrighted music on a CD onto a CD-R. 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.
• The owners of copyrighted music have the right to use protection technology to allow or prevent copying.
• Remember, it’s never okay to sell or make commercial use of a copy that you make."
In other words, the original, physical CD (or whatever) is your license to possess a copyrighted work in whatever format you, personally, may have transferred it to. You must continue to own the original CD. If you haven't the original CD, you've no license to possess a copy of the work no matter the form or format. And you most certainly can not legally or ethically transfer a copyrighted CD to someone else for them to make copy. It's pretty straightforward and only fair to the musicians.
Doing what I do, LP to CD transcription and remastering, requires that I have a high awareness of the copyright laws involved. Mostly, I work for the person or label who owns the copyright on the original recording. But If I do a transfer for an individual, I, and any reputable transfer service, will be adamant that my customer owns the LP personally and that they will not give up possession of it. It's their license to own the CD transfer *FOR THEIR PERSONAL USE ONLY*.