Ok, your right it's definitely a grey area. However, the reason Norway declared Itunes illegal has nothing to do with the way it backs up files or rips cd's. It was declared illegal b/c the songs you purchased through it were only playable through their Ipod machines, and not other MP3 players/devices.
This has to do with consumer protection, not copyright laws. Apple will have to give over the formula to other companies so that they're music players can play them, or they will face bans in other countries as well.
http://www.ft.com/cms/s/1fc40360-abe9-11db-a0ed-0000779e2340.html






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