The point (Score 1)

The point of the Judge's argument seems to be that the conversion to MP3 altered the original work. As I understand it, US copyright law says one cannot copy and alter another's work without the permission of the copyright holder. As mp3 conversion is lossy, one can argue that the original work is altered (i.e. quality/content is lost.)

Under this premise one could, however, transfer all 650 MB of CD content in original or non-lossy compressed format and remain perfectly legal.

Personally, I think the Judge is really straining on this point, as all sorts of technologies (fax machines, analog tape decks, VCRs to name a few) alter the quality of the original. It would be a real bummer if you had to get permission from the TV network each time you wanted to tape a program!

I'd like to see this decision appealed, but I'm afraid that's not in the cards...