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Surely, ripped songs were produced even begore August, 1996, but the first release by a scene group is being dated to that specific date, as shown by the associated .nfo from those days. The release group was called Compress Da Audio, a relatively short-lived MP3 ripping group, who just managed to get the fame of being the first group to enter into the wonderful world of MP3 music.
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The MP3 phenomenom grew rapidly from those days, with the advent of better ripping and encoding tools appearing during the winter of 1996-1997 and with the first version of WinAMP player. Coming years, MP3 became the synonum to illegal music, as P2P networks became a commonplace and people didn't have to rip their own music to MP3 format anymore - but could simply download songs from P2P networks.
The era of MP3s also marked the birth for our site, AfterDawn. Our humble original idea was to create a place where one could find all the information about MP3s, their technology and to provide place to download all associated software, too.