Maxwells demon

Today in work we invented a perpetual motion machine made out of elastic bands, flagrantly violating the 2nd law of thermodynamics as we did so. I should point out that we weren’t supposed to invent a perpetual motion machine (in case anyone from my work is reading this I got a lot of other stuff done today).

The machine works thusly:

One of my fellow temps noticed that his elastic band ball always bounced higher than the height at which it was dropped. We decided that if said rubber ball was made much bigger and had a magnet placed inside it and if it were then placed inside a big vaccuum tube with magnet of reverse polarity at either end it would theoretically bounce forever. If you then encircled the tube with hoops of copper, it would generate current. That current could then be harnessed to power the magnets at either end turning them into electromagnets. Viola perpetual motion.

Would anyone care to point out the flaws with this? There are some put my brain is too tired to see them. I guess heat loss through the wiring would ensure some entropy, but not much in a vaccuum.