Handbrake is certainly a very good encoder. Don't think we're allowed to talk about the ripping part here, since it involves defeating copy protection?
That isn't how copyright works. You own a licence to view the film under certain circumstances. Making copies of it is against copyright law, whether they're for yourself or other people.
Of course, you'll never be punished for ripping a CD, so the relevance of the law is debatable.
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