Sony BMG Settles With 39 States
December 21, 2006
- Legal and Management
by Chris M. Walsh, N.Y.
Sony BMG Music Entertainment will pay $4.25 million to 39 states and the District of Columbia to resolve the investigation of CDs that installed a hidden anti-piracy program on consumers' computers. A "rootkit" program included on the CDs sold opened a security hole on computers. Attempts to remove the software by some customers damaged the PCs.
"Consumers should be protected from hidden software files that can threaten their privacy and harm their computers," said Maryland Attorney General J. Joseph Curran, Jr. "I am pleased that consumers who were harmed by these practices will receive restitution."
The settlement, which follows settlements between the states of California and Texas with Sony BMG on Tuesday (Dec. 19), also prevents Sony BMG from using the anti-copying software in the future without first complying with reforms in the agreement, according to a statement.
Under the terms of the settlement, Sony BMG will provide refunds up to $175 to consumers who experienced harm to their computers when they sought to remove the DRM software. Consumers can download a claim form at the Sony BMG Web site.
The states participating in today's settlement are: Alabama, Alaska, Arizona, Arkansas, Connecticut, Delaware, Florida, Idaho, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Montana, Nebraska, Nevada, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Dakota, Tennessee, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming, and by the Attorney General for the District of Columbia.
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