Category — Settlements

This is an evolving story. Over the last couple weeks news reports have covered the growing number of U.S. states settling with Sony over the Rootkit debacle (see stories linked below). The number of states and the dollar value appears to be growing, but it seems clear that Sony is quickly putting this behind them.

Under the settlement, SONY BMG must provide refunds up to $175 to all consumers who experienced harm to their computers when they sought to remove the DRM software.  Refund claims may be submitted to SONY BMG through this claims page.

Some reports indicated that Sony is in final settlement discussions with the FTC on this matter as well. 

Sources: PCWorld | CSO (IDG) | DRM Watch | techworld | Computer World| ZDNet | CNet | InfoWorld | Massachusetts Attorney General Press Release | Sony's Settlement Page

 Related Posts:

• Sony Settles Rootkit Lawsuit with 40+ U.S. States for $5.75M (and Climbing) (December 27, 2006)
• Sony Rootkit Settlement Faces Opposition in Canada (September 19, 2006)
• Sony Rootkit DRM Settlement Passes Final Legal Hurdle (May 23, 2006)
• Sony Settles Class Action Law Suits over Rootkit DRM (December 29, 2005)
• Texas Saddles Another Claim on Sony (December 23, 2005)
• My Morning Jacket Burns New CDs for Fans Replacing Sony's CDs with Rootkits (December 15, 2005)
• Texas Sues Sony BMG for 'spyware' on CDs (November 21, 2005)
• Sony folds Tent, Recalls CDs (November 16, 2005)
• Fallout from Sony CD Flap Getting Worse (November 15, 2005)
• Sony Bows to Pressure and Abandons DRM Rootkit Technology (November 11, 2005)
• Sony Faces Class Action Law Suit over Rootkit DRM (November 10, 2005)
• Sony Caught using Rootkit DRM (November 3, 2005)

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The Canadian Sony rootkit settlement reached a few weeks ago is facing Canadian opposition. It still must be approved by a Federal Judge. The case was finally settled in the U.S. on May 23, 2006. The Canadian settlement lacks some key provisions contained in the U.S. settlement including: an obligation to do security testing before using similar technologies in the future; explicit consumer disclosure of such future use; and injunctive relief rights against Sony if it fails to do so.

Sources: ars technica | Michael Geist | Slyck | Sony Canada's Settlement Site

 Related Posts:

• Sony Settles Rootkit Lawsuit with 40+ U.S. States for $5.75M (and Climbing) (December 27, 2006)
• Sony Rootkit Settlement Faces Opposition in Canada (September 19, 2006)
• Sony Rootkit DRM Settlement Passes Final Legal Hurdle (May 23, 2006)
• Sony Settles Class Action Law Suits over Rootkit DRM (December 29, 2005)
• Texas Saddles Another Claim on Sony (December 23, 2005)
• My Morning Jacket Burns New CDs for Fans Replacing Sony's CDs with Rootkits (December 15, 2005)
• Texas Sues Sony BMG for 'spyware' on CDs (November 21, 2005)
• Sony folds Tent, Recalls CDs (November 16, 2005)
• Fallout from Sony CD Flap Getting Worse (November 15, 2005)
• Sony Bows to Pressure and Abandons DRM Rootkit Technology (November 11, 2005)
• Sony Faces Class Action Law Suit over Rootkit DRM (November 10, 2005)
• Sony Caught using Rootkit DRM (November 3, 2005)

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After a judge in New York's southern district ruled that eDonkey facilitated illegal activity by allowing users to swap copyrighted material over the eDonkey2000 network, MetaMachine Inc., the firm behind eDonkey, Overnet and their P2P variants, has agreed to cease distribution of their P2P software and to pay the RIAA $30 million to avoid a copyright infringement suit. The company also agreed to take measures to curtail file sharing by existing eDonkey and Overnet users. Despite the shutdown and settlement, existing users of eDonkey, and an open source version called eMule, will likely go on sharing files unabated. While BearShare, Kazza, Grokster and others have settled with the RIAA, Warez P2P, Limewire and Soulseek are examples of major P2P services that have not settled. The judge must approve the final terms of the eDonkey settlement.

Related Posts:

• eDonkey Settles for $30M and Shuts Down after Adverse Ruling (September 12, 2006)
• Spanish Police Target BitTorrent & eDonkey Sites (April 8, 2006)
• Music Industry Releases New Waive of Lawsuits (April 4, 2006)
• Hollywood Hails eDonkey P2P Shutdown (February 22, 2006)

Sources: ars technica | CNet | San Jose Mercury news (AP) | MP3.com | Slyck | CDfreaks.com | PC World | Mac World | Playfuls | PC Pro | BetaNews | The Register | Syndey Morning Herald | DRM Watch

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Back on May 9 I reported that the Free Peers had settled with the RIAA for $30M, shut down its BearShare P2P service and sold the BearShare assets to iMesh owner Musiclab. As it turns out, like Kazza before it, iMesh is re-introducing a new version of Bearshare (version 6 – currently in beta). BearShare 6 includes a “ToGo” portable music subscription, compatible with Windows Plays for Sure portable music players, as well as social networking features. The service will not be compatible with iTunes, iPods or the forthcoming Zune service from Microsoft. Subscribers will have access to 15 million songs, including 2.5 million from major labels. It will start with a free 30-day beta trial and eventually start charging a monthly fee.

Sources: MP3.com | TechWeb | Business Wire | ZD Net | Reuters | iTnews Australia | P2P Weblog | BetaNews

Related P2P Going ‘Legit’ Posts:

• iMesh Raises BearShare from the Dead and Takes it ‘Legit’ (August 23, 2006)
• Kazaa Settles for $100+ and Goes ‘Legit’ (July 27, 2006)
• Warner Bros. and BitTorrent Partner to Download Movies (May 9, 2006)

Related iMesh/Bearshare Posts:

• iMesh Raises BearShare from the Dead and Takes it ‘Legit’ (August 23, 2006)
• Bearshare Settles with RIAA for $30 M and Shuts Down (May 9, 2006)
• Music Industry Releases New Wave of Lawsuits (April 4, 2006)

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After many years of legal battles both in North America and Australia, Sharman Networks, the owners of the popular Kazaa peer-to-peer file sharing network, (owned by the founders of Skype) have settled with the international record labels (Universal, Sony BMG, EMI and Warner Music) for in excess of $100 million U.S. Sharman will distribute music through licensing arrangements and has agreed to filter out non-licensed content. Sharman had lost an important decision in the Federal Court of Australia in September 2005, but on February 20, 2006 had said they were going to appeal that decision. Under the settlement agreement, major record companies will be entitled to 20% of proceeds of eventual music sales through the system.

Sources: New York Times | L.A. Times | ARIA Press Release | Red Herring | ars technica | BBC | Daily Telegraph (Aus) | Herald Sun (Aus) | Slyck | SiliconValley.com | Xinhaunet (China) | San Jose Mercury News | Toronto Star | Seattle Times (AP) | VNUNet | Washington Times | CNet | ZDNet | PC World (Aus) | USA Today | Bloomberg

Related Kazaa Posts:

• RIAA P2P Defendant Brings Class Action Suit Against Kazaa Creator Sharman Networks (December 12, 2006)
• P2P Download Defendant Argues Kazaa Settlement Covers Him (Greubel) (November 20, 2006)
• Kazaa Settles for $100M+ and Goes 'Legit' (July 27, 2006)
• Kazaa, Record Company Lawyers Ready for Australian Appeal (February 20, 2006)
• Australian High Court Rules Against Kazaa (September 5, 2005)

Related P2P Going 'Legit' Posts:

• iMesh Raises BearShare from the Dead and Takes it 'Legit' (August 23, 2006)
• Kazaa Settles for $100+ and Goes 'Legit' (July 27, 2006)
• Warner Bros. and BitTorrent Partner to Download Movies (May 9, 2006)

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Text of Settlement Agreement
A U.S. federal judge approved the proposed December 28 settlement between Sony and consumers who filed a class action lawsuit over copy-protection root-kit software installed on music CDs. Consumers who bought the CDs will receive replacement discs without the anti-piracy technologies and will let them choose one of two incentive packages that provide cash or free music downloads. Sony will also provide consumers with a patch to remove the rootkit software from their computers.

Sources: Silicon.com | Reuters | PC Magazine (Reuters) | TechNewsWorld | CBS (AP) | Engadget | PC World (IDG) | BBC ZDNet | CNet | LA Times

 Related Posts:

• Sony Settles Rootkit Lawsuit with 40+ U.S. States for $5.75M (and Climbing) (December 27, 2006)
• Sony Rootkit Settlement Faces Opposition in Canada (September 19, 2006)
• Sony Rootkit DRM Settlement Passes Final Legal Hurdle (May 23, 2006)
• Sony Settles Class Action Law Suits over Rootkit DRM (December 29, 2005)
• Texas Saddles Another Claim on Sony (December 23, 2005)
• My Morning Jacket Burns New CDs for Fans Replacing Sony's CDs with Rootkits (December 15, 2005)
• Texas Sues Sony BMG for 'spyware' on CDs (November 21, 2005)
• Sony folds Tent, Recalls CDs (November 16, 2005)
• Fallout from Sony CD Flap Getting Worse (November 15, 2005)
• Sony Bows to Pressure and Abandons DRM Rootkit Technology (November 11, 2005)
• Sony Faces Class Action Law Suit over Rootkit DRM (November 10, 2005)
• Sony Caught using Rootkit DRM (November 3, 2005)

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Under the proposed judgment, which still must be approved by the court, the operators of once-popular Bearshare, Free Peers, has entered into a $30 million settlement with the RIAA to settle copyright violation charges against and down. BearShare’s assets, including the domain name and list of BearShare users, were sold to iMesh.

Sources: ZDNet | BBC | Red Herring | L.A. Times (AP) | MP3.com | BetaNews | Canada.com | Billboard Radio Monitor | Wall St. Journal | DVD-Recordable.com | afterdawn.com | P2PNet

Related Posts:

• iMesh Raises BearShare from the Dead and Takes it ‘Legit’ (August 23, 2006)
• Bearshare Settles with RIAA for $30 M and Shuts Down (May 9, 2006)
• Music Industry Releases New Wave of Lawsuits (April 4, 2006)

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Legal actions have taken place recently that put dents in P2P file sharing around the world. The South Korean file-sharing network Soribada announced on Monday that it has agreed to a settlement with KAPP (the Korean equivalent of RIAA in the US) related to charges of copyright infringement before that country’s Central District Court. Soribada will pay KAPP the sum of KRW 8.5 Billion (US $8.7 Million) to end the dispute.

Source: DMR Watch

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Text of Proposed Settlement Agreement
A proposed settlement of lawsuits against Sony BMG Music Entertainment would let some consumers receive free music downloads to compensate them for Sony surreptitiously including spyware on millions of CDs, lawyers said Thursday.

Sources: Red Herring | Business Week | Washington Post | ars Technica | MSNBC | Information Week | Forbes | The Register | Seattle Post Intelligencer

Related Posts:

• Sony Rootkit Settlement Faces Opposition in Canada (September 19, 2006)
• Sony Rootkit DRM Settlement Passes Final Legal Hurdle (May 23, 2006)
• Sony Settles Class Action Law Suits over Rootkit DRM (December 29, 2005)
• Texas Saddles Another Claim on Sony (December 23, 2005)
• My Morning Jacket Burns New CDs for Fans Replacing Sony’s CDs with Rootkits (December 15, 2005)
• Texas Sues Sony BMG for ’spyware’ on CDs (November 21, 2005)
• Sony folds Tent, Recalls CDs (November 16, 2005)
• Fallout from Sony CD Flap Getting Worse (November 15, 2005)
• Sony Bows to Pressure and Abandons DRM Rootkit Technology (November 11, 2005)
• Sony Faces Class Action Law Suit over Rootkit DRM (November 10, 2005)
• Sony Caught using Rootkit DRM (November 3, 2005)
  

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BitTorrent and the MPAA reach an agreement under which unlicensed copyright movies will be expeditiously removed from BitTorrent.com's recently launched search engine

Sources: Wired | ZDNet | Reuters | BBC | The Register | Los Angeles Times | Forbes

Related Posts: 

• BitTorrent to Purchase µTorrent (December 8, 2006)
• BitTorrent Signs More Download Deals with Major Hollywood Movie & TV Studios (November 30, 2006)
• Techcrunch » BitTorrent Raises $25 Million (November 29, 2006)
• Warner Bros. and BitTorrent Partner to Download Movies (May 9 2006)
• BitTorrent and MPAA Reach Agreement (November 23, 2005)

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Text of Supreme Court Grokster Decision
File-sharing software vendor, Grokster, agrees to permanent injunction against copyright infringement after its recent U.S. Supreme Court loss.

Sources: PC World | MSNBC | Washington Post | San Jose Mercury News | L.A. Times | CNet | DRM Watch

Related Posts:

• One Year After Grokster Decision: File Sharing Continues Unabated (June 27, 2006)
• Grokster Shuttered in Court Settlement (November 7, 2005)
• U.S. Supreme Court Finds Grokster Liable (June 27, 2005)
• Grokster & Streamcast Win Major Court Victory (August 9, 2004)

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Microsoft has settled with RealNetworks for a $761 million equivalent, regarding a lawsuit filed in December 2003 alleging that Microsoft illegally used its monopoly power to restrict competition in the field of digital media.

Sources: Gamasutra  |  Microsoft  |  CNet  |  ZDNet  |  PC Magazine  |  Seattle Times  |  MSNBC

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The settlement, announced Tuesday, concludes more than two years of courtroom wrestling over the legality of 321’s DVD-copying software, which ultimately led federal judges in New York and California to order the product removed from store shelves.
Source: CNet

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