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Attorney General ups the ante in lawsuit against Sony BMG

San Antonio Business Journal - December 22, 2005

Texas Attorney General Greg Abbott added new allegations to his lawsuit against Sony BMG Music Entertainment LLC.

The new charges claim that consumers who bought compact discs from the record company were exposed to more harm than originally thought.



Abbott alleges the company's use of "MediaMax" technology for copy protection violates the state's spyware and deceptive trade practices laws.

He claims Sony BMG offered consumers a licensing agreement when they bought CDs and played them on their computers. However, Abbott alleges in the lawsuit that even if consumers reject that agreement, files -- known as spyware -- are secretly installed on their computers, which pose security risks for music buyers.

SunnComm International Inc., the creator of the MediaMax technology, is not a defendant on the suit.

A spokesperson for Sony BMG in New York could not immediately be reached for comment.

The original lawsuit claimed Sony BMG installed XCP content-protection technology on 52 music titles as a way of preventing consumers from burning unlimited copies of CDs on their computers. The company has since recalled those CDs and offered consumers rebates.

First 4 Internet Ltd., the developer behind the XCP technology, also is not a defendant on the suit.

Abbott originally sued the New York-based company in November under Texas' new spyware law, making him the first state official in the country to bring legal action against Sony BMG for embedding spyware in consumer products.

In addition to violations of the Consumer Protection Against Computer Spyware Act of 2005, which allows for civil penalties of $100,000 for each violation of the law, the alleged violations in the updated lawsuit carry maximum penalties of $20,000 per violation.

"We keep discovering additional methods Sony used to deceive Texas consumers who thought they were simply buying music," Abbott says. "Thousands of Texans are now potential victims of this deceptive game Sony played with consumers for its own purposes."

Sony BMG is owned by Bertelsmann AG and Sony Corp. of America.










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