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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.'"

21 of 187 comments (clear)

  1. Ah yes, let DRM make up for DRM by Anonymous Coward · · Score: 5, Funny

    In other news. Sony's HMO offered to make up for HIV tainted blood with a new cure that only causes cancer.

  2. Strangely absent from the list, however... by georgewilliamherbert · · Score: 4, Funny

    ...was Bittorrent...

  3. 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 Fnkmaster · · Score: 4, Interesting

      Agreed, 7.50 is baffling. Average expected cleanup costs alone are higher than that. Then there should be cash returned for the CD's origianl value. And there should be a punitive amount paid to an appropriate charity organization (like EFF, for example) of roughly an equal order of magnitude to set an example that an experienced music and technology company should know better.

      I would guesstimate that this number is too low by about an order of magnitude.

  4. 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 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.

      --
      [Fuck Beta]
      o0t!
  5. 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.

    1. Re:Odd how the accounting works by micheas · · Score: 4, Informative
      A slightly more informative link. http://www.eff.org/IP/DRM/Sony-BMG/settlement_faq. php

      At first I was unhappy with the settlement, but then I got to the following section:


      I think my CD drive was seriously damaged by the XCP or MediaMax software. Do I have to give up my claims against Sony BMG for this injury?

              No. The settlement does not release claims for:

                      * damage to a computer or network resulting from interactions between the XCP Software or the MediaMax Software and your computer (e.g., damage to your hard drive);
                      * damage related to your reasonable efforts to remove the XCP Software or the MediaMax Software; or
                      * copyright, trademark or other claims arising from the development of the MediaMax Software or the XCP Software, or any uninstallers or updates thereto.

              You may still sue Sony BMG for any such claims, whether or not you choose to take advantage of the settlement benefits. As part of the settlement process, Sony BMG agreed to waive its unconscionable New York forum selection clause and $5 limit on damages, so you can take them to your local small claims court for your damages. EFF will be developing a web page explaining how to use the small claims process to bring a lawsuit against Sony BMG.


      I am not a lawyer, but I would like a small claims slashdotting of sony for this.

      Remove the root kit, for someone that got toasted, send them a bill, attach the small claims form to the bill: Imagine the pain of forty thousand small claims actions against them.

      So, if my reading is correct, only if the damage is greater than small claims court do you want to opt out. otherwise we can try for the first small claims slashdotting.
    2. Re:Odd how the accounting works by TubeSteak · · Score: 5, Informative
      Ouch... that is really going to hurt Sony.
      Sony BMG agreed to waive its unconscionable New York forum selection clause and $5 limit on damages
      For the people who don't know what that means... Sony is not going to be able to enforce those two portions of their EULA.

      I'd like to know if "unconscionable" was the EFF's wording, or... because Unconscionable (with regards to a contract) is like asking for someone's first born child.

      There is zero (0) chance that they're going to be able to send out lawyers to deal with every single small claims suit filed across the country. The net result is going to be a shit-load of default judgements against Sony (assuming people know to sue).
      --
      [Fuck Beta]
      o0t!
  6. 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.

  7. 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.

  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!!

    --
    All content in this message is copyright (c) 2008. All rights reserved. RIAA is prohibited here.
  9. Settlement bad for plaintifs by SmoothTom · · Score: 5, Interesting
    Sony is facing no penalties and is not being made to 'repair' PC
    (or other 'puter's) their ill-thought out DRM may have damaged.

    When I buy a CD I want not only the recorded music at the highest quality
    available to me, but I want the artwork and other extras that come with that CD.

    (This doesn't mean that I don't D/L music from eMusic, Magnatunes, and
    iTunes, it just means that when I purchase a CD I do so for a specific
    set of reasons.)

    I have been to the Sony site and the Sunncomm site several times each, and have
    attempted to get any sort of reasonable response from both Sony (no
    responses at all) and Sunncomm (one seemingly automated response saying
    they will contact me.

    I don't need any fancy settlements and I DON'T want an MP3 - the quality of
    an MP3 is NOT the same as the quality of a standard CD track.

    Personally I would be satisfied with a replacement CD with no added
    software on it, and removal software that would leave my machines'
    installed software exactly as it was prior to Sony/Sunncomm (with the
    possible exception of modified dates and such, of course).

    I don't want some 'Sony Surprise' in the months or years down the road that
    will cause problems with any use I may wish to make of my computers.

    Below is my last e-mail to Sunncomm, and their only response to me:

    From: _______@____-______.com
    Subject: Unable to get response from Sunncomm support
    Date: December 9, 2005 3:46:14 PM PST
    To: investor@sunncomm.com, support@sunncomm.com
    Cc: _____@_____.org
    ________________
    I run several Macintosh computers on my home LAN, and one of
    them is also the center of my entertainment system.

    Since I have a number of Sony/BMG CDs that may have dumped
    Sunncomm files onto my system(s) I have been trying to get
    information from your support folks to remove those files
    from my system(s) and undo any and all changes Sunncomm may
    have made to standard OS and application software on my
    system(s).

    Thus far I have received absolutely no response from
    Sunncomm support.

    If nothing else, please provide me with a list of files
    potentially left or changed by Sunncomm so that I can take
    my own measures to restore my system(s).

    (Note: Your FAQ information for Macintosh computers is
    severely lacking, and in some places incorrect.)

    Thank you for your time and attention,
    [signed]

    Their response to me:
    From: techsupport@sunncomm.com
    Subject:
    Date: December 9, 2005 4:12:01 PM PST
    To: _______@____-______.com
    ________________
    Thank you for contacting us. A SunnComm Tech Support
    representative will respond to your email
    shortly.
    So far, there has been no further response from Sunncomm
    since that 09DEC autoresponse saying they would get back to
    me shortly.

    (I seriously doubt that I have any of the Sony distributed
    software on any of my machines, because I do
    NOT allow unauthorized installs to take place, but I
    would still like to have the information from them to
    allow me to verify this is the case.)

    Anyway, the "settlement" appears to be simply a way for Sony
    to protect themselves from protracted legal hassles at
    the cheapest cost to them. It is NOT in the best
    interest of any of their customers who may have had
    their system software damaged by the software
    distributed by Sony.

    -- Tomas

  10. 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.

  11. Not Good Enough by Greyfox · · Score: 5, Funny
    Unless the download is a video of their CEO comitting seppku. It doesn't surprise me when corporate execs behave with no honor here in America, but I was hopeful that Japanese guys would have a higher standard. Given the great shame that entire debacle has brought the company, some people very high up in the company should own up to the mistakes and take the honorable way out. I might even be inclined to forgive SONY if that were to happen.

    My regime would require samurai honor code for public servants and corporate upper management. You wouldn't be able to weasel out of your responsibilities by donating the bribes you got from someone to charity once he got caught and was going to sing like a canary, either! No sir...

    --

    I'm trying to teach myself to set people on fire with my mind... Is it hot in here?

  12. 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.

    --
    [Error 407: No signature found]
  13. Additional downloads: Simpsons analogy by ettlz · · Score: 4, Interesting

    From the episode where Apu gives Homer food poisoning (SNPP):

    Homer. Woo hoo! Cheap meat! [picks it up] Ooh, this one's open. [starts eating it]

    Homer is carted off to the hospital with food poisoning; he later returns to the Quick-E-Mart for reparations.

    Homer. Your old meat made me sick!
    Apu. Oh, I'm so sorry. [gets a pail of shrimp] Please accept five pounds of frozen shrimp?
    Homer. [holds one up, sniffs it] This shrimp isn't frozen! And it smells funny.
    Apu. OK, ten pounds.
    Homer. Woo hoo!

    Hmm...

  14. Re:GOOD Justice by SuneSpeg · · Score: 4, Funny

    Its hard to think about 4000000 s0ny rootkit cd's thrown in the harbour, and not gain erection !