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Sony to Settle Spyware Suit with Downloads?

modemac writes to tell us the Seattle PI is reporting that a judge has 'tentatively' approved a settlement against Sony BMG that would give customers free music downloads as compensation for the recent flawed 'rootkit' software on many new CDs. From the article: 'According to terms of the settlement, Sony BMG will let consumers who bought the CDs receive replacement discs without the anti-piracy technology and will let them choose one of two incentive packages. The first package lets consumers who bought XCP CDs to obtain a cash payment of $7.50 and a promotion code allowing them to download one additional album from a list of more than 200 titles. The second package permits them to download three additional albums from the list. The court papers said Sony BMG would try to offer Apple Computer Inc.'s iTunes as one of the download services available to the consumers.'"

27 of 187 comments (clear)

  1. Slap on the wrist by MikkoApo · · Score: 5, Insightful

    If a guy gets a 11 billion fine for sending spam, Sony ought to get a bit more for dangering its customers' computers.

    1. Re:Slap on the wrist by Anonymous Coward · · Score: 3, Insightful

      7.50 doesn't even cover the cost of the CD. Sony ought to be paying the full cost of the CD, PLUS damages incurred by the rootkit software, PLUS extra to set an example.

    2. Re:Slap on the wrist by blueflash2o · · Score: 2, Insightful

      they also get a replacement cd

    3. Re:Slap on the wrist by FusionDragon2099 · · Score: 2, Insightful

      The spammer doesn't contribute to your campaign fund, so he gets to be the example.

  2. The Value of an Album by JackTripper · · Score: 5, Insightful

    $7.50 + 1 album, or 3 albums Where X is an album: $7.50 + (1 * X) = 3 * X $7.50 = 2 * X X = $7.50 / 2 = $3.75 Value of a full-length album according to Sony: $3.75

    1. Re:The Value of an Album by saskboy · · Score: 3, Insightful

      The going rate for reinstalling Windows from scratch to repair a destroyed CD system and remove a rootkit is at least $75US. Didn't Slashdot tell us before that people were paying $125 to remove spyware? Why doesn't Sony have to live up to that standard, it wasn't just that their CDs were broken, it's that they BREAK computers too.

      And this doesn't even take into account punitive damages.

      --
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    2. Re:The Value of an Album by TubeSteak · · Score: 4, Insightful

      Well, since the offerings are "from a list of more than 200 titles." I think it'd be fair to assume that Sony is going to be offering up albums from their catalog of music.

      If that's the case, then the music only costs them whatever cut the music store(s) would normally get per track/album.

      In iTunes' case, Apple gets 4 pennies per track. The artists get 8%~14%, so even if Sony 'values' each album at $3.75, on iTunes, Sony is never going to payout more than 18% of the value.*

      My guess is that Sony tacked on a free album to their $7.50 offer to pull onboard anyone who isn't on the online music gravy train. The 3 album offer is probably cheaper for them.

      Either way, Sony doesn't lose much money on this.

      *I realize I'm assuming the costs of albums are somehow related to the costs of individual tracks, but the idea is to set a ceiling on Sony's possible losses.

      --
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  3. Odd how the accounting works by Anonymous Coward · · Score: 5, Insightful
    The first package lets consumers who bought XCP CDs to obtain a cash payment of $7.50 and a promotion code allowing them to download one additional album from a list of more than 200 titles. The second package permits them to download three additional albums from the list.

    So when they let you download two additional albums, the combined value is $7.50. When you get them from a friend, they are suddenly worth $75,000.00.

  4. Sony installs a rootkit... by undeadly · · Score: 5, Insightful

    when someone just plays a CD the user bought, and the user gets just about nothing in compensation? More importantly, this is not a deterrent for other/same company to pull the same stunt again.

  5. It's Something by BigDork1001 · · Score: 2, Insightful

    Well it's something but what about people who are on dial-up or have no Internet access at all? Not everyone out there who owns a computer has screaming-fast broadband. I didn't RTFA (I know, shocking) but I hope they plan on offering the content some other way for those people.

    --
    "Armed forces abroad are of little value unless there is prudent counsel at home" - Cicero
  6. Bad Justice by neostorm · · Score: 4, Insightful

    Why do we continually let wrong-doing companies settle lawsuits by giving away advertising? This same thing happened with Microsoft back when their "punishment" was to give several school districts copies of Windows and other MS Software. This action isn't reprimanding the company at fault, but giving them more customers instead.

    I wish lawsuits could only be settled with cold-hard-cash or *serious*, displayable change in company policy to avoid future indiscretions.

    1. Re:Bad Justice by timeOday · · Score: 5, Insightful

      It's ridiculous. When a school kid breaks into some computer to snoop around, companies claim damages of tens of thousands of dollars because the hacker *might* have changed something. The courts just lap it up. But when Sony does something worse (not just poking around, but installing a backdoor) it's $7. When you think about all the inconvenience and expense of rebuilding a rooted box, $7 is absurd. What does giving permission to copy a few music files cost Sony? Nothing. All the cynical predictions about Sony getting off scot free were 100% correct.

    2. Re:Bad Justice by hackstraw · · Score: 4, Insightful

      Why do we continually let wrong-doing companies settle lawsuits by giving away advertising?

      Dunno. Why do "we"?

      I remember a long time ago when some Americans got pissed at a company and simply raided their supply of products and threw them into a harbor.

      Read all about it here.

    3. Re:Bad Justice by the_bard17 · · Score: 4, Insightful

      That sounds fair to me.

      For installing an exploit onto your system?

      Twist the situation around... imagine installing an exploit onto Sony's internal network, without their permission, then get caught. Wanna bet the judge is going to let you off with a $7.50 punishment?

      Didn't think so.

  7. Appears to be reported by the *Associated Press* by xmas2003 · · Score: 2, Insightful
    Minor nit: Submitter says "the Seattle PI is reporting" but the referenced URL appears to just be a reprint from the Associated Press with no byline.

    I don't doubt this story is accurate, but AP has had some pretty sensational blunders recently, so important to provide correct attribution and know how it was sourced.

    Speaking of that, I'd love to know who originated this sound of freedom story ... and shake their hand ... priceless!

    --
    Hulk SMASH Celiac Disease
  8. Just another in a long line of... by jskline · · Score: 5, Insightful

    This really is just another in a long line of crap being pushed on the consumers by the lawyers who are the ones making the "real" money.

    I supposed most of you have forgotten that for all those machines infected with this parsite, it will cost the user about $150 per machine to have it removed or the machine reloaded and the equivalent of that in your valuable time if you are doing it yourself.

    Where do these bozo's get off with this one is beyond me!!

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  9. So in conclusion... by BTWR · · Score: 3, Insightful
    Lawyers get millions and millions

    Users get to split the rest amongst themselves, giving them a whopping $7.50. Wow... that's almost the price of a large Chicken Lo Mein!

    Go Justice System!

    1. Re:So in conclusion... by harlows_monkeys · · Score: 2, Insightful
      (1) There are a lot more users getting $7.50 than there are lawyers getting millions. From the point of view of discouraging similar behavior in the future, that $7.50 to users is going to be a bigger stick than than the fees of a few lawyers.

      (2) Lawyers who handle these kinds of suits put up a lot of money up front, out of their own pockets. If the suit doesn't get certified as a class action, of if they lose, they are out that money. That happens a lot. In general, class action lawyers do OK, but not a lot better than other lawyers. You just never hear much about all the cases where they don't get anything.

  10. From the Drug Dealers' Handbook by Quirk · · Score: 2, Insightful
    Rule 1: The first taste is always free.

    Rule 2: Replace bad product with good product.

    The underlying rule would seem to be, keep them coming back for more.

    --
    "Academicians are more likely to share each other's toothbrush than each other's nomenclature."
    Cohen
  11. Who gets punished? by MrAndrews · · Score: 2, Insightful

    I haven't seen it written anywhere yet, but one question I've seen raised is who pays for this blunder? Let's say that I'm an artist who had that DRM on my CDs. My cut of the CD sales is already tiny, but now what they're saying is that I not only have to give back the money I earned from the original sales, but I'm also going to have to give away another CD's worth of money, too. A proper punishment for Sony would be to need to guarantee payments to the artists for every copy of every CD, even if it was called back because of DRM. Otherwise they're just passing the hurt on to the artists.

    1. Re:Who gets punished? by jefu · · Score: 2, Insightful
      Who pays?

      Possibility 1 : The consumer - not the ones getting the $7.50 each, but all the rest. The price of CD's would just get bumped a bit - done over the next year or so no one would notice much and the corporate budget would balance.

      Possibility 2 : The artist - just add a small surcharge to the cost of producing their next albums. The alternative to paying it would probably be to lose the contract, so who would complain.

      Possibility 3 : Sony Employees in general - delay raises and bonuses for a bit and everything will be just fine - they can always blame it on their reduced profits for the year. Reduced because of the payout, of course.

      Possibility 4 : Shareholders - lop a penny or so off dividends. Wall Street might notice, but they're probably going to be so lost in admiration for a corporation that got away with it yet again that they'll swarm all overthemselves to load up on Sony.

      Possibility 5 : Sony Higher Management - reduce bonuses or salaries for those directly responsible and their managers? Sorry. Can't do that - after all these are the people that make the company profitable (never mind the consumers, artists and general employees).

      You pick.

  12. Too lenient... by Anonymous Coward · · Score: 5, Insightful

    A) this fiasco borders on fraud -- most people thought they were buying an ordinary audio CD that would work like any other, not something that would infect their computer permanently. Most people wouldn't even consider the possibility. These discs are a look-alike that have less features (e.g., you *can't* copy it onto your iPod) for the same price. They are a pseudo-Red Book Audio CD knock-off that Sony sold with the hope people wouldn't know or care about the difference.

    B) had it been anyone else, they would have been prosecuted for all kinds of computer-invasion-related crimes. Their equipment would be confiscated and they'd probably have to meet bail requirements.

    C) the RIAA and MPAA, at the urging of companies like Sony BMG, have been lobbying for harsher treatment of people committing illegal copying. Why should ordinary people be lenient at all when we are told that, should we download music files or copy music, we are guilty of stealing and should owe thousands of dollars of restitution, if not be thrown into jail? Furthermore, there is NO acknowledgement that some kinds of copying (e.g., of a disc I bought and paid for) fall under "fair use" and, therefore, are NOT illegal. I haven't downloaded any music I haven't paid for or that wasn't free with the permission of the people who made it.

    D) This whole thing occurred because Sony BMG, while protecting their legitimate copyright interests in this music, didn't care about the implications of destroying consumer's ability to legally exercise their fair use rights, or Sony wouldn't have deployed this stuff in the first place. They were reckless. And it isn't specific to a flaw in this protection method -- other methods degrade the quality of the data, and use all sorts of other stupid tricks. If they don't care about the implications of turning otherwise legal users into criminals if they circumvent these protections, then why should I care that they didn't *mean* to cause this degree of a problem?

    E) Comments by Sony management's early in the process were pathetic. Most people don't know what a rootkit is, so why should they care? Right. Most people don't know what DRM is, but they do care when it prevents them from using the product the way they did for every other audio disc they purchased.

    Let Sony roast in the legal flames for a while, until they are good and crispy. Until they acknowledge the underlying reasons this fiasco occurred, and commit to not deploying any kind of DRM that stomps on fair use rights or consumer's equipment, I say: NO MERCY. Persecute them to the full extent and penalty the law permits, just like they advocate for others. I don't care about the money or the free tracks, I want to see their policy change, and I want to see establishment of a deterrant that causes other companies to consider the same. It is high time the public stopped the erosion of their side of the bargain that is copyright.

  13. Re:Strangely absent from the list, however... by danwesnor · · Score: 2, Insightful

    A link to the agreement was posted on /. a week or so ago. The best part of it: Sony will promise not to do it again - for the next to years. After that? Open season.

  14. Re:Strangely absent from the list, however... by click2005 · · Score: 2, Insightful

    After that it wont matter. We'll be forced into using DRM locked hardware, operating systems and portable devices. Standard DRM will be fine. Even discussing non-DRMd music will probably be illegal.

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  15. Differential Punishment by grondak · · Score: 4, Insightful

    If one of us dropped a rootkit on Sony's computers, we'd go to jail.
    If Sony does it to us, they can mea culpa and smile? Did they buy out the Mentos plant so they could get away with ANYTHING?

    Since the rootkit installs even when you decline the EULA, Sony needs to be prosecuted under the same laws we enforce upon script kiddies. All of them. There is no compensation that a 15 year old kid can give Sony (how about a download, Sonycorp?) that would stop them from pursuing civil and criminal lawsuits, and there should be nothing Sony can do to avoid the same discussions in open court. People at Sony made a really bad decision, and they should pay for transgressions in the same way a 15 year old kid would: with hard time.

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  16. OK, who's actually filed? by Anonymous Coward · · Score: 2, Insightful

    Who has actually followed through with their "outrage" and made the effort to file in small claims court, or try to push for an actual criminal charge for computer hacking? The rootkit qualifies as malicious hacking, so there's an angle to explore, but you'd have to convince your local prosecutor to actually make the charges. Who's going to spend the time explaining this to some flatfoot prosecutor? How long before he laughs you out of his office? What judge is even going to understand this if you file in small claims?

    My prediction, way less than 1% of the potential claimants will do jack squat about this. I'd be real surprised if more than a dozen slashdotters followed through, and if two of them succeed. General public, they aren't even aware of it. Most people can't name their senator, one supreme court judge, don't know what DRM is, are quite happy to use windows malware because that's all that exists in their world, and pay folding money for it, think their computer hardware is "broken" when something doesn't work, so they certainly aren't aware of anything Sony did. They aren't being told about it, and even if they were they wouldn't care if it involves doing more than one thing that takes longer than thirty seconds and doesn't require them to take away any quality time from listening to other so called music or playing a vido game or watching a movie or pro sports. People by and large don't even care when they are used, abused and ripped off anymore.

    In short, this settlement is beyond a joke. Until they start breaking up corporations immediately once it has been found they engaged in criminal acts, and making the stockholders eat it, lose everything, and throwing the managers and decision makers in jail, corporate malfeasance is how modern globalist business is done. It's "the system". So called "fines" are window dressings for the soap opera that passes for the justice system now. It's just a publicity stunt bone they throw out at the less than 1% of the public that is left who really care about things. Follow the clue trail, all fines imposed on any large corporation will be made up with their next crap they sell. YOU are paying Sony's fines, directly or indirectly, whether you bought a bogus CD or not. They'll cook their books or just raise prices on something else, it won't matter to them, they will just pass along the cost of doing business. They EXPECT to pay bribes-fines- once in awhile to various "legal" entities. They budget for it in advance.

  17. Re:What about my time? by HiThere · · Score: 2, Insightful

    Well, write up yourself a bill. Don't hide that this is your billing yourself for professional services, but make it clear that this is what you would charge others. Be reasonable. Add an addendum billing yourself for the time it takes you to prepare the case for small claims court. Then take it to small claims court, ask for reimbursement for time spent, and see what happens. At worst you'll be out a bit more time. It seems quite likely that you'll get at least part of it awarded as a default judgement. And if they DO defend, you'll have cost Sony more than they've saved.

    --

    I think we've pushed this "anyone can grow up to be president" thing too far.