Sony BMG Coughs Up $1.5 Million+ For Rootkit Settlement

Remember that whole Sony BMG rootkit fiasco from about this time just last year?

You know, the one where Sony BMG president Thomas Hesse dropped this bomb of a quote: "Most people, I think, don't even know what a rootkit is, so why should they care about it?"

(If you're not familiar with this whole situation, read up on it all via the Electronic Frontier Foundation's Sony BMG page.)

Sony BMG settled one case, allowing consumers to trade in their infected CDs and receive a $7.50 cash payment and CD download, but the lawsuits didn't end there.

The company has settled two more lawsuits -- one in California and one in Texas -- agreeing to pay a total of $1.5 million and cough up more for customer refunds, reports the AP.

The settlements, announced Tuesday, cover lawsuits over CDs loaded with one of two types of copy-protection software — known as MediaMax or XCP.

Under the terms of the separate settlements, each state will receive $750,000 in civil penalties and costs.

In addition, Sony BMG agreed to reimburse consumers whose computers were damaged while trying to uninstall the XCP software. Customers in both states can file a claim with Sony BMG to receive refunds of up to $175.

But money wasn't the only condition of the settlement -- the company will also have to stop distributing CDs with hidden copy-protection software installed.

As part of the settlements, Sony BMG also agreed not to distribute any compact discs loaded with any copy-protection software that hinders computer users from easily locating it or removing it from their computers.

The record company also agreed to improve its disclosure practices.

"Companies that want to load their CDs with software that limits the ability to copy music should fully inform consumers about it, not hide it, and make sure it doesn't inflict security vulnerabilities on computers," California Attorney General Bill Lockyer said in a statement. "To its credit, Sony BMG learned this lesson and has stopped the practices that led to this lawsuit."

You have to wonder about industries that are so worried about what consumers are doing with their products. Obviously, Sony BMG is doing the right thing in trying to fix the rootkit problem, but at one point, someone thought it was a good idea.

And despite complaints and potential monetary damage, DRM isn't on its way out.

There will always be people who break the law -- even though we all wish this wasn't the case -- but how much is the music industry hurting itself by assuming that we all have ulterior motives?