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Audio books on tape aren't really what I use or even recommend. To be honest I don't even own a single audiobook on tape. However, I found this article on the matter and there are a few interesting points...

The law is a very specific thing. In order to be binding the wording has to be exact. In a fair world there would not be loop holes because everyone would know exactly what was meant and not try to subvert the law. Recently audio books on tape found itself in the middle of the legal battles regarding copyright infringement. Is it fair to the author and publishing house for a person to be able to copy the books without their express permission? Is audio books not covered under the same laws that govern the copyright of music and movies?

Audio books on tape found themselves left out in the cold when it came to the lettering of the law. The courts ruled that the wording regarding copyright infringement laws did not apply to books. Many authors
and publishing houses were shocked to find themselves so openly exposed. They had assumed that they were protected in the same manner movies and music was protected from illegal copying and downloading.

After that ruling there were questions regarding whether audio books on tape and audio books CD fell under
this same legislation since technically the book was intellectual property. Could a recording of a book be
rented or downloaded without the author or publishing company's permission? The terminology of this issue related to what is termed "right of first sale". The courts later determined that the laws governing movies and music's copyright legalities did not apply to audio books. But the question remains whether or not this is fair and equitable to the authors.

After the terminology and laws were examined the authors and publishing companies started moving in the
right direction so that audio books on tape would be protected in the same manner as that of music and movies. One valuable lesson was learned: you cannot take anything for granted and everything must be specifically spelled out in order to be covered under the often murky definition of the law.