Do we know if this was actually illegal though?  I do not know either way, but is it possible Steve was allowed to keep his working copies, to do with as he pleased?  Again, I do not know, but this very well might be possible.  Acetates and such regularly turn up on eBay and these were once in the hands/owned by the engineers, band members, etc.  Working copies in and of themselves do not imply copyright ownership (similar to one buying a 33mm film print) but usually one is allowed to have working copies of one's work and do with them as they please; however, the rights to the underlying works are not transferred.  But the object (in this case a CD) can be given or sold.