It is illegal to download or rip songs you haven't paid for in accordance with the licensing agreement for that music:
In the December 2005 decision BMG Music et al v. Cecilia Gonzalez, a federal court ruled that the illegal downloading of songs by a consumer constituted copyright infringement and awarded damages against her of $22,500 for downloading 30 songs ($750 penalty per song). The defendant had actually downloaded 1,370 songs and, under federal law (while it is highly unlikely), the damages could have potentially been assessed at over $205 million.
On June 18, 2009, the first illegal music downloading case to go to a jury trial resulted in a verdict requiring a mother of four children to pay $1.92 MILLION for illegally downloading 24 songs from the Kaaza file-sharing web site. This amounts to $80,000 per song, though she could have been hit for $150,000 per song for the over 1,300 songs she allegedly downloaded (over $195 million). Note: For a 2010 update on this story,click here. For a 2013 update on this story, click here.
On July 31, 2009, a federal jury ordered a Boston University graduate student to pay $675,000 for illegally downloading and sharing music online. He admitted to downloading hundreds of songs but the suit only specified 30 songs for which he was ordered to pay $22,500 each. He could have been found liable for up to $150,000 per song for a maximum of $4.5 million. For the full story, click here.