Since we have a business copying old media to new, I did a little research into copyright laws. I am NOT a lawyer, this is NOT legal advice, it is simply my understanding of this particular aspect of copyright law so we wouldn’t run into problems in our business.
It is illegal for you to do anything except keep the discs or destroy them. You can legally make one backup digital copy of your music, but you can’t then loan or give or sell the discs to someone else and then keep the digital copy you have. It’s like a book – you have “a” book, and you can loan it or sell it or whatever, but only one person at a time can read it.