Sony settles lawsuit from rootkit fiasco


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December 20th, 2006

Sony settles lawsuit from rootkit fiasco

Sony BMG has settled a lawsuit with the state of California over rootkit technology that it illegally installed on computers.

Record label Sony BMG has agreed to pay a $750,000 fine and will reimburse consumers for up to $175 to offset the cost of computer repairs that were required to uninstall digital rights management software that the company bundled with several of its music CDs.

The settlement also bans Sony from distributing CDs with bundles DRM technology without proper disclosure.

The settlement stems from last year's rootkit fiasco. In an attempt to prevent illegal copying of its music, Sony bundled anti piracy software on several of its music CDs that would automatically install when a user inserted the CD in a computer. To prevent consumers from uninstalling the application, it used rootkit technology to hide the files and the processes from the user and system.

Security experts have argued that the rootkit is extremely poorly engineered and that worm authors could exploit it by simply placing the characters ‘$sys$’ in front of a file name. Although Sony initially denied that its software posed a security risk, it was proven wrong when the Stinx-E Trojan started exploiting the rootkit's features.

An estimated 450,000 Californians purchased one or more of the malware infested CDs, but the state doesn't know how many of those tried playing the CDs on their computer and are therefore eligible for a refund.

The complaint accused Sony of false or misleading advertising, unfair and unlawful businesses practices, and unauthorized access to computers.

‘Companies that want to load their CDs with software that limits the ability to copy music should fully inform consumers about it, not hide it, and make sure it doesn't inflict security vulnerabilities on computers,’ said California's attorney general Bill Lockyer.

‘To its credit, Sony BMG learned this lesson and has stopped the practices that led to this lawsuit. But the settlement further protects consumers by prohibiting similar conduct in the future and requiring Sony BMG to pay consumers back for out-of-pocket expenses they incurred to repair harm to computers caused by the software.’

Sony in January settled a class-action lawsuit from a group of consumers, agreeing to exchange CDs and pay up to $7.50 in cash.

Source: Vnunet.com

	All news for December 03rd, 2008:
	15:18	Hackers run Linux on iPhone
	15:17	Your face is easy to fake, says security company
	15:15	Microsoft opens up Vista SP2 beta
	15:09	Latest VB100 malware test brings good news
	14:57	Botnet Master Sees Himself as Next Bill Gates
	14:53	Apple removes Mac antivirus recommendation
	14:51	License server glitch exposes SonicWall users to e-mail security threats
	14:50	Lenovo arms ThinkPads with Intel's built-in security
	14:50	U.S. report sees major terror attack by 2013, ignores cyberattack risk
	14:48	Lenovo arms ThinkPads with Intel's built-in security
	14:44	Feds nab more members of alleged identity theft gang
	14:43	Apple's antivirus advice 'big to-do about nothing,' says researcher
	14:42	Opinion: Is there a hidden cost to data protection?
	14:41	Human error is top IT security concern
	14:40	Workers worried about job security might steal corporate data
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