Sony to settle copy-protection suits
By Jefferson Graham, USA TODAY
LOS ANGELES – Embattled music label Sony BMG Music Entertainment has agreed to settle consumer complaints about its controversial attempt to copy-protect CDs.
Under terms of a settlement consolidating several lawsuits, Sony will give consumers who purchased an estimated 10 million CDs a combination of cash, replacement music and free downloads.
The CDs – from artists including Alicia Keys, Santana, Neil Diamond and Bette Midler – used software from companies First 4 Internet and SunnComm that limited the number of times a CD could be copied on a PC. The software also made the PCs susceptible to viruses and spyware programs.
In November, Sony recalled CDs using First 4 Internet’s XCP copy-protection software, offering consumers replacements. The label had said it wouldn’t recall SunnComm’s MediaMax CDs, but now says it will stop making them.
Widespread problems with the CDs spawned several lawsuits against the label, including one by privacy advocacy group Electronic Frontier Foundation. The settlement, which must be approved by a New York court, consolidates most of them. A handful are still outstanding, including a lawsuit by Texas’ attorney general.
In a statement, Sony BMG said it is “pleased to have reached this agreement with the class-action plaintiffs.”
New York attorney Scott Kamber, who represents several individuals, said, “The settlement provides real value … in a timely manner.”
To participate, consumers must complete a claim form and send Sony the original CD with a receipt. Other details:
”¢Purchasers of the XCP discs are eligible for $7.50 cash and one free album download – or no cash and three free downloads – from a list of 200 albums from online services expected to include Apple’s iTunes Music Store, Napster and Sony Connect.
ӢConsumers with CDs using the MediaMax software Рincluding titles by Keys, Maroon 5 and Babyface -get either a replacement CD download or a replacement CD download and a free CD download, depending on which CD title was purchased.
Settling the lawsuits so quickly “will do a lot to restore Sony BMG’s image,” says analyst Phil Leigh of Inside Digital Media. “People want CDs without restrictions,” he says.
Sony BMG has said it is reassessing its future copy-protection plans.
The flap has been “a major step back for copy protection,” says analyst Gene Munster at securities firm Piper Jaffray.
