Many lesser-known bands thrive on people trading their material just to get heard. However, copyright issues are not to be taken lightly, as demonstrated by the recent slugfest between Metallica and the online music company Napster. If it's for a tape exchange, that's a gray area. Obviously the industry as a whole would rather someone purchased music from a retail source. The danger lies in what the legalities and ramifications of taping are. . . .
People think that just because they can tape music it's OK to use it in any way they see fit.
But it's tricky if done by other means, shuffling off the Net, etc. Control of intellectual property is lost if the sound is as good as on the album. However, taping something for someone else does go against copyright rules. I've traded with people from England, Japan, Australia, Canada, and all over the United States. Of the people I've interviewed, most traded internationally as well.