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Is it illegal to photocopy postage stamps?

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It depends! To photocopy a stamp in black and white is not illegal in the US. It is illegal to make a copy of a stamp in the same size and color as the original. That is why most catalogs show the stamps at 3/4 or 2/3 size, so that they do not violate the laws of the country. Others require a bar or line across the stamp, a sort of pre-cancel, on the picture.

In the U.S. the potential crimes would be forgery/counterfeiting [18 USC § 501] and mail fraud [18 USC § 1341] which are both Federal offenses.
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