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DRM Watch : DRM Technologies: Week 3 of the SonyBMG/First4Internet Debacle: The Fallout Continues

Week 3 of the SonyBMG/First4Internet Debacle: The Fallout Continues
November 23, 2005
By Bill Rosenblatt

In the third week of the brouhaha over First 4 Internet's XCP CD copy protection software used in certain SonyBMG Music discs, the fallout is building on all fronts. SonyBMG now faces a growing number of class action suits, including one from the Electronic Frontier Foundation (EFF) for misleading consumers and one from the state of Texas for violating the its anti-spyware laws. First 4 Internet faces the ironic accusation of breaking a "copyleft" agreement by using some open source code in a commercial product. And analysts at Gartner have found that a properly placed piece of tape can circumvent XCP, in a manner similar to the black marker pen ploy on Sony's own, now-abandoned copy protection software.

The EFF and Texas lawsuits admittedly smack of opportunism: a state attorney general seeing a grandstanding opportunity, and a prominent advocacy group looking to advance its hard-line anti-DRM agenda. The EFF is also using the occasion to go after SunnComm, the other vendor of CD copy protection technology used by SonyBMG, on similar grounds of neglecting to inform consumers of its behavior. The charges that can legitimately be brought against these vendors in the US are not all as clear-cut as those that have already been brought in Europe, where the technology abridges consumers' rights to make private copies of legitimately obtained content.

Once again, the backlash against CD copy protection is not new. The novelty is in its ferocity, now that it has been unleashed in the United States, the media and litigation capital of the world.

For its part, SonyBMG is now offering unencrypted MP3 versions of the music that consumers may have bought in protected CD format, in addition to unprotected CDs. It is recalling the protected CDs and putting its CD copy protection program on hold.

The cost of this episode to SonyBMG is mounting -- not just in bad PR, the effect of which is hard to measure, but in real expenditures on things like litigation defenses and product recall programs. SonyBMG should be asking itself how the ultimate monetary cost compares to that of paying for the design of decent DRM technology that respects consumers as much as it protects copyrighted material.

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