If anything happens to your CDs, they can be readily replaced at affordable prices

[richlevy]

Actually, it would be fairly simple for the free market to take effect here. Simply have the industry label in large unambiguous lettering 'restricted use' any CD's that they feel cannot be 'backed up'. Then let independent artists label theirs 'fair use' in equally large unambiguous lettering. Or simply have the FTC define the phrase 'fair use' and let companies place it on their products the way they do 'fat free' and 'low calorie'. The market would sort this all out really quickly.

This is similar to what happened with debit cards. Unlike credit cards, debit cards have very few legal protections against fraud. Instead of the government stepping in, banks are now competing with commercials on recovering from fraud.