The back up is legal only if you follow two important points:thistledown wrote:You go out and buy a video.
Then you make a copy for your own use.
Now a friend wants to get the video.
You sell it to him, because you have a backup copy.
Once your friend has the original, he decides to create a backup copy for his own use as well.
Now you decide you want the video again.
You agree to buy it back at the same price you sold it to him for.
You now have the original product again, and your backup copy, and your friend has his backup copy.
1) It's for personal use only, ie you can't lend it to anyone (unauthorised lending of the original source itself is also illegal although it's left in more as a technicality as the companies know that it isn't going to make any difference if they say it or not).
2) You can keep the backup as long as you have the original. Once you relinquish the original you must destroy the backup otherwise it is an illegal copy.
Also I believe only one backup copy is allowed anyway but I'm uncertain on that.
Thus your plan can't work. If you lend it to someone they can't make a backup as it isn't theirs to back up, if you gave it to them you'd have to destroy your backup, hence you can't keep a copy and allow someone else to make a copy of it so your small scale piracy works at a scale of 2 people where you have a backup and lend the original to someone