January 2, 2006
Sony BMG has reached a $4.25 million settlement with 39 states and the District of Columbia over its illicit use of "root-kits" on music CDs sold to consumers.
Like earlier announced agreements with both Texas and California, consumers will be eligible for compensation of up to $175 for those who can provide documented evidence that a Sony rootkit caused damage to their computers.
Sony said it was "pleased" with the settlement and said it would stop using copy-protection software that cannot be easily removed from consumers' PCs.
A Web site has been set up to provide more information on the settlement, including a complete list of titles covered by the pact.
The office of Massachusetts Attorney General Tom Reilly took the lead in brokering the multistate agreement.
"If companies want to use technology to protect their interests, they need to be up front with consumers, and give consumers the opportunity to make informed choices about buying and using these products," Reilly said in a prepared statement.
New York-based Sony BMG, a joint venture of Sony Corp. and Bertelsmann AG, said it was pleased to reach the agreement.
It covers CDs loaded with one of two types of copy-protection software -- MediaMax or XCP. The record label began including MediaMax on some of its discs in August 2003 and introduced XCP in January 2005.
Last year, the record company shipped more than 12 million compact discs on 52 Sony BMG titles, each loaded with one of the two programs. About 4 million CDs with the MediaMax software and about 3 million CDs loaded with the XCP software were sold.
The XCP software concealed itself to thwart computer users from finding it and attempting to delete it and it also opened a potential security hole on Windows PCs.
