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Yes you are correct.
Every CD-R contains an ATIP - it contains information on manufacturer, dyd type, length etc. Pressed cd's (originals) don't have an ATIP. So with modern copy protections, it checks to see if an ATIP is present, if there is then it knows it is a copy and won't run. This will help you understand why ATIP can't be copied as such.
Only cd-writers are able to read ATIP, so if you play the copy in a cd-writer then you need Hide CD-R Media running in the background. If you play the game in a non-cd writer then you may not need Hide CD-R Media.
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