This article is from the CD-Recordable FAQ, by Andy McFadden (email@example.com) with numerous contributions by others.
Rules for copying software resemble those in the USA.
The rules for music are more lenient. Because of the media tax imposed
by the Canadian government (see section (7-13)), you are allowed to copy
any music for your own personal use. This means that you can go over to
a friend's house and copy any number of discs you like, so long as they
are for your own use. You are not allowed to make copies of music and
then give them to others.
See http://www.cb-cda.gc.ca/decisions/copying%2De.html, notably "Tariff
of levies to be collected by CPCC in 1999 and 2000 for the sale of blank
audio recording media in Canada" (PDF in both English and French).
http://techcentralstation.com/081803C.html points out that downloading MP3
files from P2P networks (e.g. the original Napster) is legal in Canada.
(The article actually claims that sharing is entirely legal, but by the
terms of the law downloading is legal and uploading is not.)
The levy also applies to audio cassettes, removable memory cards, and
hard drives embedded in digital audio products.