{QUICK REFRESHER ON} (from various sources including: http://en.wikipedia.org/wiki/ 2005_Sony_BMG_CD_copy_protection_scandal)
In 2005 Sony/BMG Music began distributing audio CDs which included copy protection software. The CDs would not play on computers until some software had been installed from the CD onto the computer.
The problems were that this "protection" software acted in the same manner as a rootkit - a type of program that hides itself from the user - and it also opened vulnerabilities in the Windows OS making it easier for viruses and other malware to infiltrate such a computer.
"On November 16, 2005, US-CERT, part of the United States Department of Homeland Security, issued an advisory on XCP DRM. They said that XCP uses rootkit technology to hide certain files from the computer user, and that this technique is a security threat to computer users. They also said one of the uninstallation options provided by Sony BMG introduces further vulnerabilities to a system. US-CERT advised, 'Do not install software from sources that you do not expect to contain software, such as an audio CD.'"
Further, some CD owners reported that removing this software ended up with a corrupted hard disk involving the loss of all data and needing the reinstallation of the operating system to make the computer usable again.
The CDs were recalled, class-action lawsuits and other legal action followed in various locations, and "on January 30, 2007, the U.S. Federal Trade Commission (FTC) announced a settlement with Sony BMG on charges that their CD copy protection had violated Federal Law. The settlement requires Sony BMG to reimburse consumers up to $150 to repair damage that resulted directly from their attempts to remove the software installed without their consent. The settlement also requires them to provide clear and prominent disclosure on the packaging of future CDs of any limits on copying or restrictions on the use of playback devices, and bars the company from installing content protection software without obtaining consumers’ authorization. FTC chairwoman Deborah Platt Majoras added that, 'Installations of secret software that create security risks are intrusive and unlawful. 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.'"
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...from: http://www.oto-online.com/index.php? option=com_content&task=view&id=516&Itemid=1
Sony sues anti-piracy company Wednesday, 18 July 2007
Following a class action settlement proposed in a lawsuit against Sony BMG Music Entertainment, SunnComm International, and First 4 Internet, Sony BMG is suing The Amergence Group Inc (formerly SunnComm), claiming that its technology was defective and cost the record company millions of dollars to settle consumer complaints and government investigations.
The MediaMax CD copy protection caused an uproar amongst consumers, following the discovery that the software caused various problems, including playability issues. Sony BMG is trying to get about $12 million in damages from Amergence, accusing the company of negligence, unfair business practices and breaching the terms of its license agreement by delivering software that "did not perform as warranted".
Amergence has countered by saying that it was "unexpectedly served with a summons in a civil lawsuit brought by Sony-BMG. The suit alleges, among other things, that SunnComm's CD copy protection component, called MediaMax, was defective and that the small Phoenix- based company has a contractual obligation to indemnify the entertainment giant against consumer actions which Amergence believes resulted primarily from 1) Sony's under-tested release of a competitor's technology, and 2) BMG's 'final authority' input in determining the functional specifications of the MediaMax copy protection."