Sony BMG agrees to compensate DRM protected Audio CD owners

Sony BMG agrees to compensate DRM protected Audio CD owners

Entertainment giants Sony BMG have had a terrible year with the controversies surrounding their DRM protected Audio CDs. Apparently, the company decided to embed their Audio CDs with XCP and MediaMax DRM programs which got installed on the user’s system without any intimation. Security companies labeled this technology spyware as the system’s security was compromised due to poor coding by the developers of the technology.

The company was then forced to take the lots of these CDs back and even offered free replacements to the buyers of the DRM protected CDs. However, this could not prevent the company from being sued. The case seems to be ending into an out of court settlement as Sony BMG has agreed to offer incentives to US customers who bought these CDs.

Sony also said in a statement that they would ensure that all the XCP enabled Audio CDs are promptly removed from the market and the consumers are provided tools to get rid of the installed application on their computers. Owners of these CDs would have an option to choose from two incentive plans. They can either download three albums from a list of over 200 titles or can claim a cash payment of $7.50 and freely download one album.

To avail this offer they would have to return their XCP CDs to Sony or provide a proof that they returned or exchanged the CD at a retailer after November 14. The company has however not agreed to take the Audio CDs loaded with MediaMax technology back. However, the owners of these CDs would be offered to download one free album and would be provided MP3 versions of the music on the MediaMax album.

This settlement deal has been submitted and is yet to receive the authorization from the courts.

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