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Dangerous Incorporated
12-21-2006, 12:21 AM
Sony BMG To Pay $1.5 Million Over Hidden Program

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 itself open up a security hole on computers, but attempts to remove the software by some customers also damaged computers.

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

State officials estimate some 450,000 compact discs carrying the XCP software were sold in California, while about 130,000 were sold in Texas.

Some who used certain antispyware software to remove the programs installed by the Sony BMG compact discs ended up with a glitch that caused their computer CD-ROM drives to be disabled.

Sony BMG also agreed not to distribute any compact discs loaded with any copy-protection software that hinders computer users from easily locating it or removing it from their computer
s.

The record company also agreed to improve how it discloses to consumers whether its CDs come loaded with software.

"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. "To its credit, Sony BMG learned this lesson and has stopped the practices that led to this lawsuit."

Sony BMG began including MediaMax on some of its discs in August 2003 and introduced XCP in January 2005. Both software programs limited the number of copies of a disc that a user can make.

Source: TVN