Music giant Sony BMG has agreed to stop making CDs with much-criticized copyright protection software as part of a settlement in a class action lawsuit ...
December 29, 2005 (Press Release) --
Sony Settles Spyware Suit
The music giant agreed to stop making CDs containing software linked to spyware.
December 29, 2005
Music giant Sony BMG has agreed to stop making CDs with much-criticized copyright protection software as part of a settlement in a class action lawsuit that was filed after users found the software made their computers vulnerable to spyware and other malicious software.
The settlement will put an end to the 20-plus cases filed by consumers against Sony since November. It will also resolve the lawsuit filed by the Electronic Frontier Foundation, a non-profit digital rights group.
The draft of the settlement, which also included cash payments of $7.50 per user, was filed in the court in the U.S. District in New York on Wednesday.
“Sony BMG is pleased to have reached this agreement with the class action plaintiffs and looks forward to the court approval process,” the company said in a statement.
Sony said it would immediately start paying out the benefits agreed to in the settlement, though final approval for the settlement may be a few months away.
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The suit arose in November after security specialists discovered Sony CDs used a technology that automatically installed files on Windows-based personal computers to protect copyrights. These experts warned these files could be exploited by hackers to insert malware into the computers (see Sony CDs Install Spyware: Firm).
In addition to halting the manufacture of CDs with the copyright protection software, which is called XCP and MediaMax, Sony agreed to recall the CDs containing the software. The New York-based music giant also agreed to ensure that fixes are readily available and to provide updates to help consumers uninstall the software from their computers.
In addition to the cash payments benefits, Sony also agreed to provide free music downloads and replacement CDs without content protection software.
Plaintiffs in seven of the cases filed against Sony agreed to the proposed settlement, which will also affect all other consumer class action suits against Sony, said co-lead counsel for the plaintiffs Elizabeth Pritzker, a partner at Girard Gibbs & De Bartolomeo in San Francisco.
Fifteen other cases currently in front of various courts across the country are expected to be incorporated under this settlement.
“The settlement that we have submitted to the court for approval provides immediate relief to consumers,” said Ms. Pritzker. “Not only have they recalled the CDs but they are also offering cash payment for the return plus additional benefits in the form of music downloads.”
Sony American Depositary Receipts rose $0.48 to $41.17 on the New York Stock Exchange.
Sony had distributed the technology, ostensibly for copyright protection, on 52 CDs by various artists that had been on sale for nearly eight months. After the outcry, Sony on November 11 said it would start recalling the CDs (see Sony BMG Swears Off Spyware).
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The music giant agreed to stop making CDs containing software linked to spyware.
December 29, 2005
Music giant Sony BMG has agreed to stop making CDs with much-criticized copyright protection software as part of a settlement in a class action lawsuit that was filed after users found the software made their computers vulnerable to spyware and other malicious software.
The settlement will put an end to the 20-plus cases filed by consumers against Sony since November. It will also resolve the lawsuit filed by the Electronic Frontier Foundation, a non-profit digital rights group.
The draft of the settlement, which also included cash payments of $7.50 per user, was filed in the court in the U.S. District in New York on Wednesday.
“Sony BMG is pleased to have reached this agreement with the class action plaintiffs and looks forward to the court approval process,” the company said in a statement.
Sony said it would immediately start paying out the benefits agreed to in the settlement, though final approval for the settlement may be a few months away.
- ADVERTISEMENT -
The suit arose in November after security specialists discovered Sony CDs used a technology that automatically installed files on Windows-based personal computers to protect copyrights. These experts warned these files could be exploited by hackers to insert malware into the computers (see Sony CDs Install Spyware: Firm).
In addition to halting the manufacture of CDs with the copyright protection software, which is called XCP and MediaMax, Sony agreed to recall the CDs containing the software. The New York-based music giant also agreed to ensure that fixes are readily available and to provide updates to help consumers uninstall the software from their computers.
In addition to the cash payments benefits, Sony also agreed to provide free music downloads and replacement CDs without content protection software.
Plaintiffs in seven of the cases filed against Sony agreed to the proposed settlement, which will also affect all other consumer class action suits against Sony, said co-lead counsel for the plaintiffs Elizabeth Pritzker, a partner at Girard Gibbs & De Bartolomeo in San Francisco.
Fifteen other cases currently in front of various courts across the country are expected to be incorporated under this settlement.
“The settlement that we have submitted to the court for approval provides immediate relief to consumers,” said Ms. Pritzker. “Not only have they recalled the CDs but they are also offering cash payment for the return plus additional benefits in the form of music downloads.”
Sony American Depositary Receipts rose $0.48 to $41.17 on the New York Stock Exchange.
Sony had distributed the technology, ostensibly for copyright protection, on 52 CDs by various artists that had been on sale for nearly eight months. After the outcry, Sony on November 11 said it would start recalling the CDs (see Sony BMG Swears Off Spyware).
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