Sony BMP Spyware Case Finally Closed in Texas

AUSTIN - Texas Attorney General Greg Abbott today concluded a year-long investigation and legal action against Sony BMG Music Entertainment by obtaining an Agreed Final Judgment that provides restitution to consumers and brings sweeping reforms that will protect consumers nationwide.

Texas was the first state in the nation to take legal action against the music giant after determining that Sony BMG released millions of compact discs containing harmful software that was not disclosed to consumers. Today’s precedent-setting action prohibits Sony BMG from selling CDs containing XCP, MediaMax or any other content-protection software that hides or cloaks its software files. Sony BMG must also destroy any existing CDs embedded with XCP or MediaMax technology, continue working to withdraw those CDs from the marketplace, and submit to independent, third-party monitoring of any software-enhanced music CDs for the next five years.

“Texans deserve to be protected from harmful, hidden files that threaten their privacy or the integrity of their computer systems,” said Attorney General Abbott. “Our first-in-the-nation action against Sony BMG shows that consumer privacy will be vigorously protected. Today’s settlement removes harmful products from the marketplace, compensates consumers for any harm they have suffered, and sets best practices that we hope will lead to reforms across the industry.”

In November 2005, the Attorney General’s Consumer Protection Division brought the first lawsuit ever filed under the Texas Consumer Protection Spyware Act after learning that so-called XCP and MediaMax technologies violated Texas' consumer protection laws. Further investigation revealed that the software embedded on some Sony BMG CDs could damage consumers’ computers and create security vulnerabilities. The State’s lawsuit also claimed that Sony BMG violated the Deceptive Trade Practices Act.

Texas consumers whose computers and CD-ROM drives were damaged by XCP software may qualify for restitution from Sony BMG. Today’s agreement requires that Sony BMG publish claim forms on its Web site, www.sonybmg.com. Consumers seeking restitution should submit claim forms to Sony BMG, along with repair receipts and other evidence of system damage. Claimants could receive up to $175 each to compensate them for the costs of repairing computers damaged by Sony BMG products. Those without proof of out-of-pocket expenses are still eligible for $25.

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Check out the rest of the details in the Official Texas AG Press Release.

You can see my past blogs about the Sony Spyware case here.