In Germany it is allowed to make a small number of copies for friends and family (Privatkopie). So if I transfer a song to DB for a friend, the evidentary trail will also show that the file has only been downloaded very few time, which is legal.
It is even allowed to make a copy of a copy. So if I recieve a song from a friend, I am allowed to give it to a couple of my friends. But I am not allowed to simply seed it to strangers through anonymous filesharing.
Translation of the german wikipedia entry on "Privatkopie": http://translate.google.com/#de|en|https%3A%2F%2Fde.wikipedi...
It is safer to assume that they are than to assume they are not. Maybe they got an NSL with a gag order that requires them to silently store logs indefinitely. There's no way of knowing, so just assume that's the case and plan accordingly (e.g. don't upload embarrassing college photos that would cause you problems if the upload logs were hacked and released to the public).