[Locke1689]

"Cloud Player is an application that lets customers manage and play their own music. It's like any number of existing media management applications. We do not need a license to make Cloud Player available."

Source: http://arstechnica.com/media/news/2011/03/amazon-on-cloud-pl...

In the following article[1], an intellectual property lawyer indicates that Amazon's move is on unclear legal ground.

[1] http://arstechnica.com/media/news/2011/03/music-industry-wil...

Your assertion that all copying is illegal is also false, as found in SCOTUS's refusal to hear the Cablevision case in 2009.

In addition, in the UMG vs. MP3.com decision the problem was that MP3.com was doing the copying. The judge made a clear distinction between what MP3.com was doing and time and space shifting, which are closer to what cloud storage services are doing.