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Sony may have settlement for CD lawsuit
More news on the Sony lawsuit settlement. Sony has agreed to a settlement in a nationwide class-action lawsuit about the security flaws introduced by its controversial copy-protection software, according to court documents released earlier this week.
Lawsuits from consumers begun to fly in mid November after it was revealed that Sony had been installed copy protection software on some of its music CDs which could leave a purchaser's PC vulnerable to security attacks.
Earlier, the class-action lawsuits from around the U.S. were consolidated into a single case. The proposed settlement would entitle customers who bought, received or used a Sony CD loaded with XCP to exchange the disk for a replacement CD, an MP3 download of the same album and either a cash payment of US$7.50 and one free album download or three free album downloads. Customers who were affected by MediaMax 5.0 will receive a free MP3 download of the same album and one additional free album download.
Lawsuits from consumers begun to fly in mid November after it was revealed that Sony had been installed copy protection software on some of its music CDs which could leave a purchaser's PC vulnerable to security attacks.
Earlier, the class-action lawsuits from around the U.S. were consolidated into a single case. The proposed settlement would entitle customers who bought, received or used a Sony CD loaded with XCP to exchange the disk for a replacement CD, an MP3 download of the same album and either a cash payment of US$7.50 and one free album download or three free album downloads. Customers who were affected by MediaMax 5.0 will receive a free MP3 download of the same album and one additional free album download.
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User Comments (21)
Post a comment| nathanskywalker on January 2, 2006 7:25 PM | So they aren't going to be stupid anymore? Well, good for them. Course you can hardly blame them for trying to stop pirating, but hiding software, i'm sorry that was just to far.
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| cyrax on January 2, 2006 8:28 PM | I just think this is such a big relief. Think of what they would have put in Playstation 3 dvds? While the sections are separate, they could have decided to put it in with no one's knowledge.
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| PUTALE on January 2, 2006 10:22 PM | mmh, I think they should also give extra money to those got effected. It's so unfortunate that we, the cumsomer, has to suffer from the flaws that the comapnies makes.
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| anas_t on January 3, 2006 12:14 AM | Yea , I would have sued them If I knew about it ! :)
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| Craftos on January 3, 2006 1:50 AM | Well, it was logical choice, cause court case would only end worse. Either way - lawyers win :\
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| Rage_3K_Moiz on January 3, 2006 2:27 AM | Sony seems to have hit a spot of turbulence. But I think they will be able to recover all of their losses when the PS3 debuts i.e. if they follow PUTALE's advice and monetarily compensate those affected.
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| MonkeyMan on January 3, 2006 2:36 AM | I agree Rage, the PS3 will more than make up for their losses, regarding this legal dispute. At least Sony realized they were wrong, and decided to cooperate, and correct their error, by providing free albums. Nice work Sony, its great to see a company that realizes their mistakes, and correct them in a respectable, and professional way.
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| PanicX on January 3, 2006 3:08 AM | I'm not overly well versed in the aspects of corporate identities, however I do believe that because Sony BMG is a subdivision of Sony Global, its overall success or failure doesn't impact the other divisions of Sony. Basically, the Sony divisions are more like individual companies, with their own Stock and Executive boards that are only responsible to their own entities. When BMG gets sued as they recently were, the only assets available for damage compensation are those in Sony BMG and not Sony Global. So what I'm trying to say is that Sony's Playstation 3 won't have any impact on Sony BMG, not that the lawsuit or bad PR are going to affect BMG much either.
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| rahuls on January 3, 2006 5:07 AM | Sony should add up some more spice to compensation offered looking at the insecurity caused to the customers who had trusted it.
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| mentaljedi on January 3, 2006 6:57 AM | At least Sony did something about it unlike some companies with faulty xbox 360s...
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| asphix on January 3, 2006 7:20 AM | While I always hate to see lawsuits thrown around, Sony had this one coming and it shows that we still have rights as consumers that are acknowledged by the legal system and the corporations (even if heasitantly). We're starting to see some lines being drawn on the extent these companies can go. I guess sueing minors wasnt far enough already.
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| enasni on January 3, 2006 7:57 AM | I think that the settlement they cmae up with is complete idiocracy. Same download from them of the same album? Sounds a bit fishy to me seeing as how there responsible for the whole problem. But the download and what $7.50 is supposed to make up for your wrecked computer? I think they should have to pay technicians to go out to everyones homes and fix these computer problems.
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| Bartzy on January 3, 2006 9:34 AM | So consumers wasted their time and money, sued Sony, and they are getting a free album that costs 7.50$ ? Woohoo. I think Sony is insolent. If consumers where exposed to security attacks because of Sony, it's not right. They should pay much more than a 7.50$ album (that probably costs them 3$ or so).
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| mastronaut on January 3, 2006 10:26 AM | In my opinion, these companies created their own problems by signing 'one hit wonders'. There's nothing worse than paying $12-15 bucks for a disk with one or two good tracks on it! I can see why people download it first. If it's good most people will buy the CD. We all know the quality is much better than mp3. Just give us our hard earned moneys worth. (ok SONY)? (enter other labels here).
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| asphix on January 3, 2006 11:04 AM | Enasni, Bartzy, while I strongly agree that what the consumer effected by this issue is receiving in indemnities are lacking there really is a positive to be seen from this situation regardless. Just the fact that a very solid line has been drawn and Sony BMG is being forced to take action, period, is a huge step. We have just gone from the company suing 12 year olds to the company admitting a foul and offering indemnities (however pitiful). Baby steps.. Admitting you are falable is the first step.. its all down hill from here. Its important to acknowledge and focus on the positive so further progress can be squeezed out of future similar situations. [Edited by asphix on 2006-01-03 11:08:10]
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| Rhianntp on January 3, 2006 11:39 AM | Originally posted by mastronaut: In my opinion, these companies created their own problems by signing 'one hit wonders'. There's nothing worse than paying $12-15 bucks for a disk with one or two good tracks on it! I can see why people download it first. If it's good most people will buy the CD. We all know the quality is much better than mp3. Just give us our hard earned moneys worth. (ok SONY)? (enter other labels here). I agree fully. In the last 20 years rarely has anything been releeased thats worth $15. Dont get me wrong, there are alot of very talented artists who put out awesome work..we just dont get to hear or see it promoted.. 
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| mastronaut on January 3, 2006 1:24 PM | I agree, where are the Pink Floyds, Led Zeps and Kansas(es)? Bands that you could count on for an albums worth of good music. Carrey Underwood is touring, she has one song out! How can she possibly fill one and a half to two hours time in concert? Ridiculous...
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| enasni on January 3, 2006 2:06 PM | asphix You do make a great point but consumers already know that everyone is falable and if you think its better that it is public knowledge then think about this. A company that large making a mistake like that can only mean that they are close to bankrupcty and will be bought out by another company in the near future. They have become so relaxed in there ways that they are beginning to become bored and find new means of entertainment. They clearly knew it was illegal and would cause massive problems but they wanted the attention to bring there name back stronger into the public.
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| kwr_rc on January 3, 2006 4:03 PM | Their sales are down due to poor respect to their customers. Who wants to buy CDs from people who are treating you like a criminal? Not me. If they want respect (and sales back to normal or above) they have to earn it first. I don't see one sign of them wanting to change their business practices, why should I?
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| PanicX on January 3, 2006 6:20 PM | Sony 's Revitalization Howard Stringer (Sony CEO) has had huge plans for recreating Sony since Sept 05. Of course things like massive layoffs and closing manufactoring facilities take some time. But word is that Sony may be selling off their non-core assests to focus more on their core business (consumer eletronics).
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| flavin on January 3, 2006 10:49 PM | Didn't SONY also get in trouble with their PS2 DUALSHOCK2 Contorllers?
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