This post is an article regarding a copyright law passed in Australia. In it's original wording the use of an iPod or the singing of Happy Birthday in public would be considered a crime. Apparently they've refined the law to allow such things now, but the following rule still applies:

...it would be illegal to 'sell, loan, or give away a copy you make to a friend, but a friend can listen to your music with you'.

Being the Zune allows you to send a song to a friend which he can listen to 3 times, this would pretty much make that feature illegal, as you need not be present with the friend for him to use the song those 3 times...

So the law effectively makes the sharing feature on the Zune illegal in Australia...

I guess Universal's rant about the Zune being the only music player that was 'legal' in fact incorrect. As at least the iPod doesn't inherently contain a feature that violates Australia's copyright law...