Trenton
- Attorney General Stuart Rabner announced
today that SONY BMG Music Entertainment
will pay at least $4.25 million as part
of an agreement with New Jersey and 39 other
states that grew out of allegations the
company placed secret anti-copying software
on millions of CDs that harmed computers
and made them vulnerable to hackers.
Under
terms of the multi-state agreement, known
as an Assurance of Voluntary Compliance,
SONY BMG will provide refunds of up to $175
to consumers who spent money to repair computers
damaged by the software. Consumers will
have 180 days to file a refund claim, which
must be submitted on a form which will be
available on the SONY BMG website (www.sonybmg.com).
The
company agreed to pay $4.25 million to resolve
the states’ investigation. New Jersey
will receive $313,000.
During 2005, SONY BMG distributed more than
12 million CDs with two kinds of anti-copying
software, but did not inform consumers on
the CD boxes that the CDs contained anti-copying
software, or Digital Rights Management (DRM)
software. The software was intended to restrict
consumers’ ability to copy music,
but was designed so that consumers did not
know that the anti-copying software was
downloaded onto their computers. One version
of the software was called XCP and created
vulnerabilities on Windows-based computers
by exposing them to security problems, including
viruses.
When
consumers did discover XCP, they experienced
problems when they tried on their own to
remove the software without using a specific
uninstall program that was later provided
by SONY BMG.
“Music
producers are within their rights to protect
their music,” Attorney General Rabner
said. “But not informing consumers
about anti-copying software, and using software
that damaged their computers violates consumers’
rights.”
The
multi-state agreement provides that SONY
BMG will not include DRM software that is
downloaded or copied to the hard drive unless
it is disclosed to the consumer. Specifically,
SONY BMG will be prohibited from using XCP
or Media Max DRM software in the future,
and will limit the ways in which SONY BMG
may use other anti-copying software in the
future. If it does choose to use DRM software
in the future, SONY BMG must inform consumers
about it.
In
addition, the multistate agreement states
that SONY BMG must clearly inform consumers
if the music CDs they purchase contain an
enhanced feature that connects to the Internet
when the CD is inserted into the computer.
SONY BMG must obtain a consumer’s
consent before connecting the consumer’s
computer to the Internet.
Deputy Attorney General Geoffrey R. Gersten
represented New Jersey in this matter.
>> Assurance
of Voluntary Compliance or Discontinuance
(1.78mb pdf)
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