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It's actually legal to copy copyrighted stuff for non-comercial use as long as it doesn't have a substantial market effect. This is coverd by Fair Use.

So giving a copy to a couple your friends is legal.

but

Giving copies to several of your friends is illegal.

Giving a copy to any of your friends in exchange for money is illegal.

Of course any tampering with "DRM"/"copy protection" is illegal now thanks to the DMCA.