The Aug 3, 2007 inventory loss bug demonstrates the inherent UNACCEPTABLE RISK of all No Copy items. Linden Labs cannot guarantee secure storage of No Copy items, and users have no practical means of creating personal backups of these items.
Here is what Linden Labs should do to SOLVE this problem ONCE AND FOR ALL:
The No Copy property of an item should be changed to allow the owner to make multiple personal backup copies of the original item. These backup copies should be created with both No Copy and No Transfer properties set, insuring that they can only be used by the owner of the original item.
This change in the No Copy function would benefit both merchants and consumers alike, eliminating the need for merchants to provide customer support for replacement of lost No Copy items.