Let's remember that piracy is a illegal act even if you don't charge money for distributing the data in most countries (be they ISO, ROM images, burned CD/DVD/BluRay, copied K7, copied VHS, copy of books, etc).
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If I rip data from a game and give that data to a friend to play and he copies the data to a friend and the process goes on and on to about say 10-15 other people, is that considered piracy
That's piracy from the 1st time that you gave the data to your friend, and you can be prosecuted for distributing the pirated data, you lose any rights to claim fair use, even in countries that permit you to use ways to crack DRM to obtain the backup copy. Also everyone on the chain that gave copies of this data can be prosecuted for distribution.
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If I rip data from my game and give that same disc game to my friend and he rips data and he gives it to his friend and the process goes on and on to about 10-15, is that still considered piracy
That's piracy from the moment you gave away the licensing rights along with the original medium. Like Fat D said, you must destroy all your backed up data (even if they were created under fair use rights) because you doesn't have the license anymore. In theory some media doesn't allow you to transfer the rights of use of the licensed data (to legally combat second hand sales), but since it's impractical and you aren't selling a pirated copy few people actually got prosecuted doing this.
And I think that anarchy should [edit]NOT[/edit] automatically justify piracy, anarchy is about destroying the concept of authority (someone that controls the order) it's a political philosophy, not a economical system (you can try to have a anarchic civilization that is still capitalist, you can abolish the capitalism - an with it the concept of copyrights - without destroying the authority).
Not saying that's wrong to advocate anarchy and destroying the concept of copyrights at same time, but they are separated things, separated theories that can work together.
But one thing that doesn't allow anarchy to work in actual world is that people won't let go the concept of private property, specially because without laws and their enforcers, people will start to rob at every given chance, and they will try to protect their property with any option that they get, including murdering people.
One thing that I like to say to newcomers to anarchy is "think well before asking for anarchy, because if you get it, everybody will".