I think Tax is right. This article may be of interest to you as you live in Canada or at least fall under the same guidlines I would suspect.
Here is a bit of a quote:
"On March 19, 1998, Part VIII of the (Canadian) Copyright Act dealing with private copying came into force. Until that time, copying any sound recording for almost any purpose infringed copyright, although, in practice, the prohibition was largely unenforceable. The amendment to the Act legalized copying of sound recordings of musical works onto audio recording media for the private use of the person who makes the copy (referred to as "private copying"). In addition, the amendment made provision for the imposition of a levy on blank audio recording media to compensate authors, performers and makers who own copyright in eligible sound recordings being copied for private use."
-- Copyright Board of Canada: Fact Sheet: Private Copying 1999-2000 Decision
Of course this is a little old but maybe that is the present situation.