Sony caves, but you get squat
- From: "DGDevin" <dgdevin@xxxxxxxxxxxxxxx>
- Date: Fri, 30 Dec 2005 19:01:15 GMT
Great, so Sony infects your computer with copy protection software that
leaves your system vulnerable to hackers and spammers et al., but to make up
for that you get $7.50 and a free download, sounds fair. Meanwhile, the
lawyers all get a new Lexus to drive to the bank and count their money....
http://www.betanews.com/article/Preliminary_Settlement_Filed_in_Sony_Suit/1135841071
Preliminary Settlement Filed in Sony Suit
By Nate Mook, BetaNews
December 29, 2005, 2:24 AM
Lawyers in a class action lawsuit filed against Sony BMG, First 4 Internet
and SunnComm last month have submitted a preliminary settlement, which calls
for Sony to stop manufacturing CDs with XCP and MediaMax DRM, provide
replacement discs, and make cash payments to affected customers.
Lawsuits were filed on November 14 in New York and other states by Girard
Gibs and Kamber & Associates, and class action status was granted December
1. The cases claimed that Sony's digital rights management, which attempts
to stop computer users from copying a CD's audio tracks to a hard drive, is
invasive and damaging to computer systems.
Sony employed technology from First 4 Internet (F4I) that uses a "rootkit"
to hide the DRM and prevent its removal. Shortly thereafter, it was
discovered that Sony's other copy protection software, SunnComm MediaMax,
also poses a security risk and installs without a user's permission.
The two sides met in early December and began "virtual round-the-clock"
negotiations about reaching an agreeable settlement. According to the
settlement filing viewed by BetaNews, the goal was to provide prompt relief
to affected customers and "limit the risk that these consumers' computers
would be vulnerable to malicious software."
The settlement terms include all customers who "came into possession of or
otherwise used" at least one CD with MediaMax or XCP software on it since
August 1, 2003. Sony BMG resellers and distributors are not included, nor
are former and current employees of the company.
Sony will continue its exchange program to replace XCP affected CDs with
"clean" DRM-free copies and enable customers to download MP3 versions from
its Web site. In addition, the company will offer a choice of two incentive
packages to ensure XCP CDs are removed from the market.
"Incentive #1" will provide customers with a cash payment of $7.50 and a
free download of one album from a list of more than 200 titles. "Incentive
#2" removes the cash payment but allows for downloads of three albums.
The downloads will be handled using a promotion code with three major music
download services, of which one will be Apple's iTunes. Promotion codes will
be valid for six months. Owners of MediaMax CDs, meanwhile, will be offered
MP3 versions of the music and one free album download.
In order to be eligible, an individual must return the XCP laden CD to Sony,
or provide the company with a receipt showing the return or exchange of the
CD at a retailer after November 14. A claim form will be required, as will
verification that XCP was uninstalled or updated.
As part of the settlement Sony will continue to issue the XCP Update
software, which removes the rootkit cloaking mechanism, and make available a
full uninstaller. An update to correct the MediaMax vulnerability will also
be issued, and Sony has agreed to work with security professionals to ensure
the software is free of known vulnerabilities.
In addition, the three defendants have agreed not to use the data collected
from MediaMax and XCP, and will no longer collect personal information from
any copy protected CD without a user's express consent. An independent third
party will be hired to verify this requirement for 2006 and 2007, and the
results will be posted on Sony's Web site.
The defendants will also waive certain provisions of the XCP and MediaMax
license agreements, including the restricted use of audio files and
requirement that the DRM be updated.
Until 2008, Sony has agreed not to manufacture or distribute CDs with the
XCP software, and will no longer manufacture MediaMax 3.0 or MediaMax 5.0
CDs. Unlike albums with XCP, MediaMax CDs currently in circulation will not
be recalled.
If Sony decides to ship CDs with new copy protection software before 2008,
it must ensure the DRM will not be installed without proper consent, make an
uninstaller readily available to customers, and ensure it will not create
known security vulnerabilities.
The company has additionally agreed to collect only limited information,
such as IP address and data on the CD itself, and will include "a written
disclosure in plain English that the CD contains content protection software
and a brief description of the software."
If approved, the class will be notified of the settlement terms through
e-mail and advertising, and a hearing will be scheduled for a final
approval. The current terms do not include an award of attorneys' fees and
reimbursement of costs, which could be in the millions.
As class members will release Sony BMG, F4I and SunnComm of all claims by
agreeing to the settlement, they may opt out. If more than 1,000 individuals
decide to opt out, Sony could withdraw from the settlement. F4I and SunnComm
may also choose to be excluded before January 16, 2006, which would leave
the companies open to individual lawsuits.
The settlement filing was first posted by Sunbelt Software CEO Alex
Eckelberry.
.
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