Nothing illegal has been done, but there are now 2 copies of the CD, so the whole CD business is down in the dumps.
Sorry. The last step was illegal. This is distribution and that's prohibited. It does not matter if it's your friends CD: you must either delete your own copy or keep both copies, or you are distribtiong copyrighted work - and that's prohibited.
Looks perfectly reasonable to me and this is how normal people are viewing copyright anyway: noone who's not paid by madia companies think it's illegal to copy from legally bought audio-CD to your MP3 player.
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