“Sony BMG Music Entertainment will pay $1.5 million and kick in thousands more in customer refunds to settle lawsuits brought by California and Texas over music CDs that installed a hidden anti-piracy program on consumers’ computers,” Alex Veiga reports for The Associated Press.
Veiga reports, “Not only did the program itself open up a security hole on computers, but the method Sony BMG originally recommended for removing the software also damaged computers.”
“Under the terms of the separate settlements, each state will receive $750,000 in civil penalties and costs,” Veiga reports. “In addition, Sony BMG agreed to reimburse consumers whose computers were damaged while trying to uninstall the XCP software. Customers in both states can file a claim with Sony BMG to receive between $25 to $175 in refunds.”
Full article here.
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Merry Christmas!
WHOA! 1.5 MILLION!?
What a blow to Sony BMG Music Entertainment!
I’m familiar with the root kit, but I never was sure: was this a problem on all computers, or did this only install on Windows based PCs?
Only effects Windows.
Boy, is Sony having a rotten year – Glad I don’t have any Sony Stock. Bet Sony will be really glad when 2006 is over.
Does this mean we can start to sue Micro$oft, since they’re the ones that designed Windows?
$25 to $175 for a reformat? Yeah…
WTF does the state need the money for, better yet what will the state do with the money? Doesn’t anyone else see a problem with this, the consumer trust was betrayed, the consumers computers were damaged, their rights infringed and the government gets the payout for it. seems a little backwards to me. Isn’t the government supposed to be our instrument, not some giant money sucking overlord that controls our lives..
The stats will use the $$ to pay the legal fees – otherwise it is the state tax payers left holding the bag.
That 1.5 million dollar settlement is INSULTINGLY low for such a blatant and nasty harmful invasion of customer’s privacy.
It should have been at LEAST 10-20x that I think far more personally.
At least I can console myself with the fact that the damage to Sony’s reputation likely hurt them far more than this pitiful settlement amount.
“WTF does the state need the money for, better yet what will the state do with the money? Doesn’t anyone else see a problem with this, the consumer trust was betrayed, the consumers computers were damaged, their rights infringed and the government gets the payout for it. “
Not sure where the money went that was paid to the “states” of California and Texas.
The $25 to $175 refund per CD plus “damages” to computer for the affected customers also seems insultingly low. Sony got away with murder on this one, seriously. NO company should be able to get away with doing this sort of thing, and this embarassing lack of punishment “punishment” is certainly not going to make Sony think twice about doing it again and again. Nor any other of the consumer hostile record labels.