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Sony To Settle Privacy Class Actions

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

02 January 2006

It emerged last week that Sony BMG has reached a preliminary settlement with plaintiffs in 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.

According to reports, under the terms of the settlement, consumers will be able to exchange the affected CDs, and will receive an additional unconfirmed amount of compensation.

The proposed settlement will be reviewed by a New York court this month.

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