Short version: you do not have the right to make a copy of any media item without permission. A media copy is sold for the life of the copy. However….
It is generally agreed that an "emergency" copy of an item can be made if it is needed. This might occur, for example, if two different classes needed a copy of a CD for testing purposes at the same time on the same day. If a recurrence of this event is foreseeable, though, a duplicate item should be purchased or permission obtained for the duplication from the rights holder.
The exceptions to the law against copying are outlined in Section 108 of Title 17 apply specifically to libraries and archives and are meant to further "study, scholarship, or research." The library or archive must be either open to the public or open to all researchers in the revelevant field, not just those affiliated with that particular institution. That tends to rule out language labs and teaching collections of materials, which are usually assembled for the use of faculty and students at the home institution.
All the same, it’s interesting to examine the circumstances under which librarians can make and circulate a copy. A libray can make:
- One copy of a book (i.e. a backup copy or a lending copy).
- Three copies of an unpublished work in the institution’s own archives, and may be shared with other research institutions. If the copy is digital, however, it must stay in the original institution and can’t circulate outside it.
- Three copies of a work that is "damaged, deteriorating, lost, or stolen, or if the existing format in which the work is stored has become obsolete" provided a replacement copy cannot be obtained for a fair price. If the copy is digital, however, it must stay in the original institution and can’t circulate outside it. The format is obsolete when playback equipment is no longer available.
- One copy of an article in a journal or collection, or part of a longer work, or an audio recording; or an entire work, provided it is not available at a fair price, on request, for the requestor’s "private study, scholarship, or research."
The provisions against circulation of a digital copy are clearly to prevent further duplication. It is not clear, however, whether "digital" includes digital materials fixed on a CD or DVD, i.e., less easily copied.
All copies should include clear notice of copyright.
The Copyright Advisory Network Section 108 Spinner is helpful in reviewing these rights.