Judge Approves Sony Spyware Settlement

by Glen Shapiro, LawAndTax-News.com, New York

10 January 2006

Ruling on Friday, US District Judge Naomi Reice Buchwald granted tentative approval to a settlement agreement put forward by Sony BMG in connection with some 15 class actions, brought against the firm over its inclusion of 'spyware' on some CDs.

Certain CDs recently issued by Sony contained new anti-piracy technology designed to prevent the CDs from being copied more than three times. However, the technology also installs files onto consumers’ computers that hide other files installed by Sony. This secret “cloaking” component is installed without the knowledge of consumers and can cause their computers to become vulnerable to computer viruses and other forms of attack.

Under both of the two packages offered in the settlement agreement, affected consumers will be permitted to exchange the discs for duplicates without the antipiracy technology.

However, under the first package plaintiffs will receive $7.50 in cash plus the option to download an additional album for free, whilst under the second, they will be permitted three free downloads.

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