No…the set up is intended to “deter” piracy, that is, if you don’t own the license to the music, you can’t download it from (another person’s) computer to your iPhone. This was a deal Apple made with major record labels back when the iTunes Store first opened (and a way to establish Digital Rights Management system that would satisfy the major labels). The only way I know of to circumvent would be to burn the music to an Audio CD first, then re-rip it onto your host computer (the computer that hosts your library). Then, you would be able to add it to your playlist(s) from inside your iTunes.