That's just like our law here in Canada. You can make backups for personal use but it's illegal to circumvent DRM.
It makes it pretty useless to copy anything but CDs (as CDs only had the short span of time where they included DRM, and because CD was old tech, all you had to do was turn off autoplay so the DRM software never loaded. I never considered that circumventing... because there's no law saying you have to leave autoplay turned on).
In practice though, if you are making your own personal copies, the media companies won't know. It's not like downloading a torrent and broadcasting your IP for the world to see.