Franklynxxx is quite correct. It is most definitely illegal in the U.S.A., not to mention other countries that have agreed to enforce U.S. copyright law, to "circumvent DRM". The reason Tunebite gets away with what they do is precisely BECAUSE they DO NOT circumvent DRM.
Tunebite can only record pieces of music that are purchased legally and that you can then play back and re-record legally. The music must still be purchased from online music shops.
From their own site:
"Tunebite: The DRM killer – A legal license to convert
Instead of illegally defeating copy-protection measures, Tunebite uses an innovative, technically optimized process that records original files as they play and legally saves the recordings in unprotected digital formats. Tunebite can only record pieces of music that are purchased legally and that you can then play back and re-record legally. The music must still be purchased from online music shops."
Fingers, you may view this as a matter of semantics, but believe me, DRM circumvention and what Tunebite does is two entirely different things.
If you are interested, google and read up on 321 Studios vs Motion Picture Association of America over Digital Millennium Copyright Act.
And if you're really a masochist, just read the 1998 DMCA.
By the way, Britain is in bed with the U.S. on this. In fact, one of your own countrymen was given a cease and desist order for a program he wrote called DVD Decrypter. The program itself can still be found, but without being updated to circumvent the latest schemes from Macrovision, Sony's ARcoSS and other copy prevention software, well, DVD Decrypter is quickly becoming obsolete.