As you may have noticed (from the bottom of this page), I'm concerned about my right to fairly use the copyrighted material I purchase. I don't see any problem with copying such material to a different medium, and possibly converting it to different format in the process, so long as it is for my personal use and convenience. (These concepts are captured in points #2 and #5 of the Consumer Technology Bill of Rights.)
Since Canadian copyright legislation has been in the media a lot lately, I took it upon myself, being the concerned citizen that I am, to learn more about it. Initially, I was surprised to discover that the Copyright Act defines the copying of a musical work embodied in a sound recording for private use in terms of the copier, not the owner. In other words, so long as you do the copying, copying music for your own use does not infringe the artist's copyright. It doesn't matter whether you own the CD, cassette tape or musical file.
However, what I couldn't figure out was whether I had fewer rights to use the copy than I did the original. Was a copy of a copy illegal? Well, the answer seems to be "Maybe." According to Neil Herber, even though the Copyright Act makes no mention of the source (i.e., whether you're copying the original sound recording or a copy of it), your original intent behind making the copy is important (i.e., you planned to loan your copy to your friends).