I should have clarified in my message that I was talking about "Spoken Word Audio CD's".
Probably not a relevant distinction. Unless the "spoken word" material is newsworthy (a recording of a speech or the like) or in the public domain (like reciting from 'Hamlet' or something), the CD would almost certainly be registered as a "musical work." "Musical Work" doesn't denote anything "musical" -- rather, it is the copyright office's catch-all for audio works that are "nondramatic" (meaning, they don't go along with a play or opera or ballet or the like) and not part of an "audiovisual" work (a movie). If you go and search the copyright office website,
www.copyright.gov, and you find that a particular CD doesn't have an underlying copyright on the musical work*, then it may very well fall under the exceptions in 17 USC 108.
The purpose of the exceptions in 17 USC 108 isn't to save the libraries money -- rather, it is to make sure that truely irreplaceable (or very expensive to replace) materials are not lost or irretreviably damages because of copyright laws -- the exceptions are not for mere convenience.
*CD's (or "phonorecords" in copyright parlance) generally have 2 copyrights associated with them -- 1 for the "musical work" and 1 for the "sound recording." A Beatles CD, for example, might have a copyright in Paul McCartney's name, because he wrote the song in question -- that would be the copyright on the underlying "musical work" -- and the record company would own or co-own the copyright on the "recording" of the song -- the sound recording.
If Jessica Simpson later covers that same song, then Sir Paul will STILL ownthe copyright to the underlying musical work (and Ms. Simpson will need a license to cover it), but the copyright on the sound recording in this case would be owned by Jessica's record company.
The point is -- 17 USC 108 makes a blanket exception for making copies without violating the copyright for the "sound recording," but the exceptions do not extend to the copyright in the "musical work."