Sony BMG to Pay $1.5 Million to Settle Some CD "Rootkit" Complaints

Authored by Mark Hefflinger on December 20, 2006 - 7:40am.

Los Angeles - Major record label Sony BMG will pay more than $1.5 million to settle cases in California and Texas over its inclusion of "rootkit" anti-copying technology on music CDs, which had the unintended effect of opening PCs to malicious attacks.

The company sold an estimated 12.6 million affected CDs across 79 titles between January and November 2005, when it recalled 52 of those titles. As part of Sony BMG's settlement with the Los Angeles County District Attorney's Office and the California's Attorney General, the company will also provide refunds of up to $175 to consumers who spent money to repair computer damage caused by the faulty digital rights management software on the CDs.

"Companies that want to load their CDs with software that limits the ability to copy music should fully inform consumers about it, not hide it, and make sure it doesn't inflict security vulnerabilities on computers. To its credit, Sony BMG learned this lesson and has stopped the practices that led to this lawsuit," said California Attorney General Bill Lockyer.

The company will also pay $750,000 in penalties to settle charges of false advertising, unfair competition and unlawful computer intrusion.

The Federal Trade Commission and several other U.S. states still currently have unsettled complaints lodged against Sony BMG.

Related Links:
http://tinyurl.com/ymj5nu (Calif. Attorney General statement)
http://tinyurl.com/yyswqc (Reuters)
http://tinyurl.com/uxgvn (Hollywood Reporter)
http://cp.sonybmg.com/xcp/english/home.html
Judge Approves Terms of Sony BMG "Rootkit" CD Settlement (May 26, '06)
Sony BMG Recalls "Rootkit" CDs; Fix May Also Cause Problems (Nov. 15, '05)
Sony BMG Halts "Rootkit" CDs; Microsoft Offers Removal Tool (Nov. 14, '05)