Sony BMG settles on CD software case
LOS ANGELES – Sony BMG Music Entertainment will pay $4.25 million as part of a settlement with 39 states, including Washington and Idaho, to resolve investigations into problems caused by music CDs loaded with hidden anti-piracy software.
Under terms of Thursday’s agreement, which also applies to the District of Columbia, the record company will reimburse consumers whose computers were damaged while trying to uninstall the anti-piracy software.
Sony BMG also said it will no longer distribute any compact discs loaded with copy-protection software that hinders computer users from easily locating it or removing it from their PCs.
The office of Massachusetts Attorney General Tom Reilly took the lead in brokering the multistate agreement, which was expected to be filed Thursday in Suffolk County Superior Court in Boston.
Thirteen states that started the settlement process with Sony BMG will each receive $316,538, while the rest will get $5,000, Reilly’s office said. New York-based Sony BMG, a joint venture of Sony Corp. and Bertelsmann AG, said it was pleased to reach the agreement.
Sony BMG ultimately recalled some of the discs in November 2005 and released a way to remove the files from users’ computers. It also released a software patch to fix a potential security hole.
Customers will be able to file a claim with Sony BMG to receive refunds of up to $175, but claims must include a description of how their computer was harmed and documentation of repair expenses.
The refund policy will also apply to states that were not a party to the settlement.
The latest settlement closes out the states’ investigations into the problem.
On Tuesday, Sony BMG reached a separate settlement with California and Texas, agreeing to pay $1.5 million to the states and reimburse consumers for PC damage. The company earlier settled a class-action case over the episode.
In addition to Massachusetts, the states that were a party to Thursday’s settlement are: Alabama, Alaska, Arizona, Arkansas, Connecticut, Delaware, Florida, Idaho, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine, Maryland, Michigan, Mississippi, Montana, Nebraska, Nevada, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Dakota, Tennessee, Vermont, Virginia, Washington, West Virginia, Wisconsin and Wyoming.