Virgin Records in India is distributing some regular CD's with copy protection on them. Being someone who works on a product that suffers from billions of dollars of loss due to piracy every year, I should be sympathetic to this, but frankly I think it's underhanded.
When I buy a CD, I'm paying for an unprotected digital master of that CD, and I may choose to copy that CD on to my computer so that I can listen to it using my media center, or my ipod, etc.
If the owner of the copyrighted content decides that they want to rights-manage it, then that's certainly their perogative, but then they shouldn't distribute it in a medium that's generally not expected to be rights-managed by customers. The worst offense here is the last line on the insert: "Except for manufacturing problems, we do not accept product exchange, return, or refund." So now that you've sold me something different from what it was billed to be, I can't even return it?
Behavior like this is indie-music's best ticket to success, and big labels best way to lose customers...