Sony Settles CD Suit

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Sony BMG Music Entertainment said it will pay $1.5 million plus thousands more in refunds to customers to settle lawsuits over hidden software included in its compact discs.


The legal actions were filed by the states of California and Texas over music CDs that automatically installed a hidden anti-piracy program on consumers’ computers.


The software was said to damage computers both on installation as well as on removal.


Under the terms of separate settlements, each state will receive $750,000 in civil penalties and costs while customers in both states can file a claim with Sony BMG to receive between $25 to $175 in refunds. An estimated 450,000 Californians purchased CDs with the damaging software and are covered by the restitution provision.


The New York company was also involved in a class-action case over the practice, which it had already settled.

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