That is not accurate, AFAIK. The court cases and laws that give people in the US the right to space and time shift their media do not have limits other than it must be for personal use. For example, it is legal to copy a CD to your computer and then copy the songs again to your iPod even though that means you now have three copies of the media. The same rights extend to DVDs unfortunately the government let lobbyists do an end around the law by passing the DMCA thus making it illegal to break/circumvent copyright protection schemes. Recently the US Copyright Office changed the law so it is no longer illegal to break DVD encryption if the footage is going to be used for educational or critic purposes, but there was no change w/regards to personal use. Hopefully that will change in the future though.
Lethal
Originally, there were 2 formats of CDR blanks, Audio and Data, I think you can still see "Data" on boxes of CD blanks. The Audio recorders (home CD recorders, not computer based) have basically gone away, but those required Audio CDRs, and put a flag on each copy making it not possible to record a digital copy of the copy. That was the copy protection scheme. The industry gave up on Data copies sometime after CD drives became ubiquitous in computers. I don't think anything has actually repealed the laws affecting CD copying, it is simply not enforced at all, not even close.
They never copy protected analog copies or rips to mp3, so those are legal per the DMCA as long as you don't make money off of it, breaking the old copyright code which would then still apply. And, unless you were actually selling many copies, it would likely be very hard to prove any financial gain. So, the rules basically 'miss' CD. I need to check out the new rules on DVD, I haven't, yet.
Sony tried to make new copy protection schemes for CD to counteract the computer take-over of CD recording, but it made those discs not always play in standard, legal players, even Sonys. Philips refused to let them put the standard CD Audio logo on the discs since the software was changed, and they went away pretty fast.