Possible Sony/BMG Settlement

BetaNews reports today that there is a possible settlement in the Sony/BMG spyware case.

According to the report, Sony will agree to:

(a) continue to replace the spyware-affected CDs with clean CDs

(b) allow the affected customer to choose to receive either (i) $7.50 and one free album from a list of 200, or (ii) no cash payment and three free albums from the list.

(c) stop manufacturing CDs with a specific type of DRM program until 2008.

To be eligible, customers must provide evidence that they bought a Sony/BMG CD containing the DRM spyware and that the hidden DRM program was uninstalled from the computer or updated with the software fix released after the initial outcry.

While this seems like a pretty fair compromise, there are a couple of troubling parts.

First of all, the settlement does not prevent Sony from using DRM on its CDs. It only prohibits the use of hidden DRM. Sony is allowed to use DRM prior to 2008 as long as no programs are installed on the customer’s computer without the customer’s consent and only certain data is collected by the DRM program.

Additionally, we need to see the list of 200 albums. If it’s a decent list, then this sounds like a fair solution. If it’s not, it doesn’t.

While this is certainly a win in the war against DRM, this is really about Sony’s bad decision, initally bad management of the reaction and ultimate admission of fault and agreement to fix it. The greater war against DRM will continue to be waged.

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