(December 19, 2006)—Texas has won a final judgment against SONY BMG Music Entertainment that could mean restitution for Texans who purchased compact discs containing XCP, MediaMax or any other content-protection software with hidden files, Texas Attorney General Greg Abbott said Tuesday.

SONY BMG will also pay $1.5 million to settle the suits in Texas and another brought in California.

The judgment also means SONY BMG must stop selling those CDs and must destroy any remaining CDs with XCP or MediaMax technology.

Texas’ original suit alleged the company illegally installed spyware on millions of music CDs that Abbott says could make computers “vulnerable to computer viruses and other forms of attack.”

In September Abbott warned that SONY music CDs with XCP copy protection software could cause problems for consumers whose computers use certain versions of American Online software.

Texans whose computers or CD-ROM drives were damaged by XCP software may be eligible for up to $175 restitution under the judgment, which requires SONY BMG to publish claim forms on its Web site.

Click Here For SONY BMG Settlement Site

Claim forms should be submitted to SONY BMG along with repair receipts and other evidence of damage.

Those without proof of out-of-pocket repair expense could be eligible for as much as $25.

Consumers who have XCP or MediaMax-enhanced CDs may return them in exchange for various incentives.

The Attorney General’s Consumer Protection Division sued in November 2005 in the first action brought under the Texas Consumer Protection Spyware Act after learning the XCP and MediaMax technologies violated state law.

SONY distributed millions of copies of 52 CD titles that utilized the technology in 2005.

When consumers inserted the CDs into their computers, Abbott said, a pop-up window prompted them to agree to the installation of a proprietary audio player and indicated that accepting the agreement was the only way the CD could be played.

During installation of the media player, Abbott said, XCP components were also downloaded that were almost impossible for consumers to find or remove.

Investigators discovered the files containing XCP and in some cases MediaMax transmitted codes identifying CDs when they were played on computers, but the files remained active at all times, Abbott said, “prompting concerns about the files’ true purpose.”

Click Here For List Of Titles With XCP Software

Click Here For List Of Titles With MediaMax Software

Click Here For Texas Attorney Generals Office Complaint Form

Incentive List

(Source: Texas Attorney General’s Office)
XCP CDs
In exchange for an XCP-enhanced CD, consumers will receive:
• A compact disc bearing the same title (by the same artist) that does not contain copy-protection ( DRM) software, AND
• An MP3 download containing a data file of the disc bearing the same title (by the same artist) that they exchanged that does not include DRM software; AND
• $7.50 cash (debit card) and one (1) free album download (from select titles); OR
• Three (3) free album downloads (from select titles)
If any download codes are unused or unwanted, consumers can exchange them for $2.00 each.

MediaMax 5.0 CDs
• Consumers will receive an MP3 download containing a data file of the disc bearing the same title (by the same artist) that they exchanged that does not include DRM software; AND
• One (1) free album download (from select titles)
If any download codes are unused or unwanted, consumers can exchange them for $2.00 each.

MediaMax 3.0 CDs
• Consumers will receive an MP3 download containing a data file of the disc bearing the same title and by the same artist that they exchanged that does not include DRM software.

Click Here For Texas Attorney General’s Web Site

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