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Sony BMG settles anti-piracy suits

Last year Sony BMG admitted to loading its CDs with spyware that infected users' computers. This year it announced it will pay $4.25 million to settle lawsuits with 39 states.

TEXT OF STORY

LISA NAPOLI: Thirty-nine states have settled with Sony BMG. At issue: the practice of embedding anti-piracy software into its CDs that burrowed into the operating systems of users’ computers.

Paul Resnikoff is editor of Digital Music News. He says this follows a massive recall of those CDs that carried the software.

PAUL RESNIKOFF: This has been a real financial headache and a public relations headache for Sony BMG so I would say they have definitely learned a lesson here and are definitely changing their strategy based on the fiasco and the results that happened here.

Customers can ask for a refund.

RESNIKOFF: It would prevent you from making copies and sharing and doing illegal transfers of copyrighted work, but it would also open your computer to security issues, slow your performance and it would be very difficult for you to remove it.

Resnikoff says Sony BMG’s troubles have been a setback for efforts by music companies to protect their copyrighted material.

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