A similar situation is that I can listen to music on my phone with Spotify legally but if I plug my phone in to a speaker system and play the music for a large group in public, it’s no longer allowed. But the music actually came from Spotify so how is it different?
Tech people always feel entitled to loopholes in laws like “this file is just a bunch of bits, how can a number be illegal??” But this thinking is not useful for a functional legal system.