I'm not sure with games, but with movies you can have a copy on your hard drive and one physical copy made for backup as long as you have the original. This is actually a little known fact about copyrite that I like because I HATE disc swapping with a passion. Much easier to just mount an image to play than to put things away and pull the next one out. I would imagine video games would follow similar rules in this regard. Also, consider the fact that no one ever checks these things. Police in Canada can see a list of 1000 movies on your hard drive and not care. (had this happen to a friend who was providing evidence) there are much bigger fish to fry out there.
