Except for the crazy DMCA, copyright law allows making copies of copyrighted works for certain fair uses. For example, if you make a copy of a page out of a text book to pass out to your high school biology class, that is ok, even though it would be illegal otherwise. It is for educational purposes, so fair use covers it. There are several categories for fair use, one of which is making copies for personal use. Hence, if I have a valuable book and I don't want it to get ruined while I read it, I can go make an copy of the whole thing, put the original away, and read the copy. Same with a cd. Same with computer software. (It gets weird with CDs and DVDs with copy protection and the DMCA, but hopefully that will get sorted out soon). So, no, Bill Gates is not doing anything bad telling you to back up your files, or your software. As long as its for personal use, you can do it.
In fact, you can even make limited numbers of copies for your friends and family. When cassette tapes first came out, the recording industry went nuts because they said everyone would copy LPs and then give them to everyone. The solution was to allow cassettes and recorders to be sold, but to build in a royalty on blank tapes to be paid to the recording industry. Same thing happened with VHS tapes, and I assume with blank CDs. The courts also ruled that if you made a copy of your favorite LP for your mom, that was ok too. Just so long as you weren't making 100 copies, and that you didn't SELL them. Selling copies is always a no-no.
This guy admitted these were bootleg, so they were a violation to begin with. He does not get the stuff back, period.
The comments above on my trademark example are correct, but you didn't read my whole post. I made the facts in my hypothetical the same as this case, and said that I admitted that Winchester did not give its consent for the trademark use. Therefore, the government would not need to prove it since my testimony established that the consent was not given. Hence, it is a trademark violation and the fake goods are contraband.
I was also much lest concerned about this case once I heard the facts. Amazing how editorial writers seem to gloss over stuff, huh.