Mephisto said:
In Canada for example it is legal to burn copies of music to CD and give it to friends as I understand it (though I could very well be wrong).
I am not a lawyer, this is just my interpretation from taking a brief (but very interesting) introductory course on Internet law in Canada:
Actually, you can't give your friends copies.
You can make a copy for your private use, and you can give or lend your friend the original without having to destroy or stop using copies you've made for private use.
And, your friend can make copies of the original you lent her, for her private use, then give you back the original. Similarly, it's fine to make copies of CDs you borrow from the library.
Basically it's not the copying, it's the use you make of the copy. As soon as you're distributing the copy, whether commercially or not, you run into copyright law.
Interestingly, a judge recently found that it's also not illegal to put copies on a publicly shared folder in a P2P application. She compared it to libraries having photocopiers in a room full of copyrighted books - nothing wrong with that, it's the person making the copies who may or may not be doing something illegal (depends how many pages, and what they're going to use it for - but the Can-Copy act is way off topic). So, the person who may be violating copyright is the one downloading the file - they're the one making the copy, so it's up to them to do so in a legal manner.
I don't know what an example of a legal download would be in such a case. I would guess that one example might be if you own a song on vinyl, for example. It might then be legal to download a copy, as that's the most convenient way of getting an mp3, rather than hooking up your record player (if you even own one) to the computer, and so on.
That decision might well be appealed though