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I wished detailed information of the JBL S310 and here I found it! Very happy with the service from this site!
Text excerpt from page 50 (click to view)
Rule on Digital Copying
The digital audio equipment exchange audio signals in the digital forms through digital input/output jacks, and include the CD (Compact Disc) player, MD (Mini Disc) recorder and DAT (Digital Audio Tape) recorder. The digital audio equipment allows digital copy of signals with little deterioration of music signals. This has made it necessary to have a copy restriction rule for protecting the copyright, and the SCMS has been established as a result.
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SCMS (Serial Copy Management System)
With a view to protecting the copyright, the SCMS restricts the number of generations permitted for copying of signals in the digital form between digital audio equipment to only one generation.
1st generation
2nd generation
Caution
Because of this rule, the MD obtained by recording a CD on the MD recorder cannot be copied in the digital form on other digital equipment.