Exactly ... (Score 1)

... you own a CD, you're allowed to play the CD whereever you want (as long as it isn't public performance, broadcast etc.) since you paid the copyright holder (or their agent) the fee to have that CD and use it for personal use. And under section 109 you're permitted to sell or otherwise dispose of your CD without permission of the copyright holder.

You own the CD, you can do anything you want with the CD ... however copyright law still applies (or so most legal interpretations of the copyright law would say) and so you don't have the right to make another copy (on CD, MP3 or other) without the copyright holder's permission ... now you and I may agree that that law sucks, but it's what the wording is trying to say. As far as I can tell, US copyright law doesn't allow you to photocopy a whole book or scan it into your computer to read on a PDA except under some very strict conditions (e.g. visually impaired or as part of an educational course at an appropriate institution and then only for the purposes of the course). You buy a book, it's yours, and if you want to tear the hard cover off and put on a soft cover, that's fine. But (according to my reading of copyright) you don't have the right to make a copy of a hardback (even one you own) and bind the copy in softback, even for your own use (no commercial value and no resale). Same for music.

Change (or clarify) the law. It's your government, they work for *you*. The law, as it stands, is for the benefit of the big corporations and copyright holders.