No the digital copy of a mp3 file is illegal too. Because it is digital
it is the same as the original. It is legal to make an analog copy of
the mp3 file.

I think this whole discussion is as meaningless as "what's the maximum speed you are allowed to drive?". It depends on your country. Laws are different. In Switzerland you're still allowed to exchange 1:1 CD copies among friends and family, or download from their server or their *box account etc. Yes, it's legal. But you're not allowed to use bit-torrent to do the same, as you can't control who you are sharing your files with.

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Michael
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