Distributing home-made demos is now illegal?

I’ve recently heard through the grapevine that Metro arrested a couple of guys last night who came here to Vegas to distribute their home-made demo CDs. The reason? There wasn’t an address stating where the demo was created. As such they were arrested on one felony count per CD, totaling some 40-odd felony counts.

I’m not sure about you guys, but that just doesn’t seem right to me. For some reason, I think that it also had to do with the RIAA giving a talk to local Metro officers detailing CD and DVD piracy. I can understand the attempt to undermine blatant piracy, but is arresting you for distributing your own music going too far? And should some other groups, such as the EFF also go around giving talks about what is legal in this new digital world (maybe worked out with some local computer user groups to give these police officers some basic computer training)?

Also, what law makes this illegal? If anyone here in Nevada could possibly enlighten the readership…