Do current Copyright laws still allow for backups?

Ka D'Argo writes: I had a conversation with a associate of mine about making backups of software or music cd's. This person says under the new laws with DRM, copyright and fair use, you as a consumer are no longer allowed to copy in anyway such things. I say, as it's been for god knows how long, you are still able to make a backup of something you legally own. Common sense even says, it's yours to do with as you please if you legally own it (aside from distributing copies for example). So what's the deal? Under current laws that may or may not have been updated lately, can a consumer make a backup copy of a piece of software or music cd?