Yes of course it does, but that does not mean you can't back it up.
Clean the disk with a good CD wipe making sure to get the dirt out of the scratches. Then read the disk to an image file with CDRWin at 1x speed (You may also want to set the Read Retry Count to 5 or 15).
If that does not work then the only way that you can back it up is by using
BlindRead