updated 04:30 pm EST, Tue December 19, 2006
Sony BMG Settles CD Case
Major music label Sony BMG today agreed to settle a lawsuit over its contentious anti-piracy software. The company said it would pay $750,000 in direct damages and court costs, and should pay a similar amount in another lawsuit alleging false advertising and illegal computer intrusion. Refunds are also being supplied to California residents who can describe any effect the CDs have had on their computers.
The settlement represents a possible end to a succession of bad press for the music company, which began in the fall of 2005 when customers discovered that certain Sony BMG music CDs contained a copy-protection program that effectively served as a rootkit for potential hackers. The code created new security vulnerabilities on Windows PCs that could not be closed and which were deliberately hidden from users without using special removal tools.