January 30, 2007

Sony BMG Settlement [4:00 pm]

Sony BMG settles with FTC over anti-piracy software - pdf

The U.S. Federal Trade Commission said on Tuesday Sony BMG agreed to settle charges that it secretly embedded potentially damaging anti-piracy software in some of its CDs.

The settlement requires Sony BMG, a joint venture of Sony Corp. (6758.T) and Germany’s Bertelsmann AG (BERT.UL), to make further disclosures, to allow consumers to exchange the CDs at issue and reimburse consumers for up to $150 to repair any damage to their computers, the FTC said.

“Consumers’ computers belong to them, and companies must adequately disclose unexpected limitations on the customary use of their products so consumers can make informed decisions regarding whether to purchase and install that content,” FTC Chairman Deborah Majoras said in a statement.

The FTC Press Release, Sony BMG Settles FTC Charges, also includes links to the documents in the complaint and the settlement — In the Matter of Sony BMG Music Entertainment, a general partnership.

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