[IP] Sony reaches provisional settlement in rootkit fiasco
Begin forwarded message:
From: Michael Geist <mgeist@xxxxxxxxx>
Date: December 29, 2005 3:16:31 PM EST
To: dave@xxxxxxxxxx
Subject: Sony reaches provisional settlement in rootkit fiasco
Dave,
Reports today indicate that a provisional settlement has been reached
in the U.S. Sony rootkit class actions. While the settlement still
requires court approval, it makes for an interesting read since it
may provide the starting point for a future statute that protects
against the misuse of digital rights management technologies.
Proposed settlement at
http://www.sunbelt-software.com/ihs/alex/sonysettleme23423423434nt.pdf
My blog posting (posted below) summarizes some key provisions and
argues that the deal may provide the basis for a future DRM
Protection Act.
<http://www.michaelgeist.ca/index.php?
option=com_content&task=view&id=1052>
MG
The Start of a DRM Protection Act
Reports today indicate that a provisional settlement has been reached
in the U.S. Sony rootkit class actions. While the settlement still
requires court approval, it makes for an interesting read since it
may provide the starting point for a future statute that protects
against the misuse of digital rights management technologies.
Given the Canadian focus on my blog, I should note up front that the
settlement does not apply to Canadians, who for the moment are left
with no compensation and no protection against ongoing DRM misuse.
This is very troubling given the fact that more than affected 100,000
CDs have been distributed in Canada. Sony BMG Canada should step up
and immediately offer the same terms to Canadian consumers and
undertake to abide by the same restrictions found in the settlement
agreement.
The settlement has two broad goals: compensate consumers for the harm
they suffered from both the XCP and Media Max DRM software and place
limits on Sony's use of DRM. The compensation for XCP purchasers
includes the replacement of the CD with a version without copy-
protection and the choice of either (i) US$7.50 plus one free album
download or (ii) three free album downloads (Sony will select at
least 200 eligible titles). The compensation for Media Max offers
fewer free album downloads. The most notable aspect of this part of
the settlement is that Sony will undertake to provide the free
downloads from at least three music download services including Apple
iTunes. The irony of Sony being forced to offer Apple iTunes
downloads when a prime reason for inserting the DRM software was to
combat Apple iTunes should not be lost on anyone.
More interestingly (at least to non-class action lawyers) is the
undertakings on Sony's future DRM use. The company has agreed to the
following limitations on the use of copy-protection software until 2008:
1. No further use of XCP or Media Max
2. Ensure that the DRM will not be installed on users' computers
until the user accepts the end-user license agreement
3. Ensure that an uninstaller for the copy-protection software is
made readily available to consumers
4. Fully disclose any updates to the copy-protection software
5. Ensure that the EULA accurately discloses the nature and
function of the software in plain English
6. Obtain comments about the EULA from an independent oversight
person
7. Obtain an expert opinion that the copy-protection software
does not create security vulnerabilities
8. Only collect limited personal information necessary to provide
enhanced CD functionality
9. Include full disclosures of the copy-protection software on
the CD jewel case
10. Fix any software vulnerabilities that may arise from the copy-
protection software
While many of these obligations should be standard operating
procedure and not require a court approved settlement, the full
package provides the starting point for a future Digital Rights
Management Protection Act. Much like the settlement, a DRMPA must
include consumer protections, privacy protections, security
protections, interoperability, and appropriate oversight. Rather
than pushing for protection for DRMs, it is apparent that we need
protection from DRMs and DRMPA would be a smart step in that
direction. Such a statute would be the best legacy of the Sony
rootkit fiasco.
--
**********************************************************************
Professor Michael A. Geist
Canada Research Chair in Internet and E-commerce Law
University of Ottawa, Faculty of Law
57 Louis Pasteur St., Ottawa, Ontario, K1N 6N5
Tel: 613-562-5800, x3319 Fax: 613-562-5124
mgeist@xxxxxxxxx http://www.michaelgeist.ca
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