Yeah, like I said, it depends.
In Norway it's also kinda insane, but not that insane.
Here you're /generally/ allowed to make a "limited number" of copies of a copyrigthed work for
personal use. Personal use includes close friends and family, so here it's actually explicitly
allowed to say make a compilation-cd with 15 of your kid-sisters favourite songs for her.
There's however an exception for programs. You're *not* allowed to make a copy of the newest
computer-game and give it to a close friend of yours. You are however allowed to make any
copies needed for normal usage of the program. Courts have ruled that this includes the rigth
to take backups, backing up a computer is "normal usage" of the computer.
Industry is figthing tooth-and-nail to kill the limited copies thing, or if that doesn't work
(which seems currently likely) to make people *BELIEVE* that any copying is illegal.