[Infowarrior] - Sony BMG Settles Suit Over CDs

[Richard Forno]

Sony BMG Settles Suit Over CDs

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By ALEX VEIGA AP Business Writer

December 19,2006 | LOS ANGELES -- Sony BMG Music Entertainment will pay $1.5
million and kick in thousands more in customer refunds to settle lawsuits
brought by California and Texas over music CDs that installed a hidden
anti-piracy program on consumers' computers.

Not only did the program surreptitiously monitor users' behavior, but the
method Sony BMG originally recommended for removing the software also
damaged computers.

The settlements, announced Tuesday, cover lawsuits over CDs loaded with one
of two types of copy-protection software -- known as MediaMax or XCP.

Under the terms of the separate settlements, each state will receive
$750,000 in civil penalties and costs.

In addition, Sony BMG agreed to reimburse consumers whose computers were
damaged while trying to uninstall the XCP software. Customers in both states
can file a claim with Sony BMG to receive between $25 to $175 in refunds.

The company had previously settled a class-action case over the episode.

"Companies that want to load their CDs with software that limits the ability
to copy music should fully inform consumers about it, not hide it, and make
sure it doesn't inflict security vulnerabilities on computers," California
Attorney General Bill Lockyer said in a statement.

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On the Net:

Sony BMG information on settlement: http://www.sonybmgcdtechsettlement.com