why is "transfer purchases from ipod" not clicking or working? not highlighted

I am trying to send my music library from my old iphone to my computer so that I can add it to the new iphone.

Under file, "Transfer purchases from ipod" is not highlighted. This is where I believe I am supposed to start but can't.

Does anyone know why this is unclickable or disabled and what I could do to get it back up?

THANKS:)