This is wrong. If the CD is not an original (pirated one ) it is an offence under Intellectual Property Law. This is the same as having possession of audio CDs on the pavement . The person can be arrested and prosecuted for having possession of pirated copy. But for this the Police needs to obtain the original!!! It is near impossible to obtain the original and there should also be complaint from the owner(not the prone stars, but owner like Hue Heftner who owns Play Boy movies and magazines). So this is cannot be practically done though theoretically possible.
There is no law even to enter a house without a search warrant. The police can be taken to task and compensation can be claimed if the stroy is correct.
Journalists do not understand these and write anything (eg what MR, Gammanpila and JO states and most are half or full lies)