From News.com:

Sony BMG has struck a deal with the plaintiffs in a class action lawsuit over copy-restriction software it used in music CDs, according to a settlement document filed at a New York court Wednesday.

The record label has agreed to compensate buyers of CDs that contained the XCP and MediaMax DRM programs and to provide software utilities to allow consumers to uninstall both types of software from their computer.

The furor over Sony’s DRM software began at the end of October when a U.S. programmer discovered that XCP software on a Sony music CD had installed copy-restriction software on his computer that was hidden using a rootkit. Antivirus companies later discovered Trojan horses that exploited this software to avoid detection and found that another type of Sony DRM, MediaMax, also posed a security risk.

During November a number of individuals filed cases against Sony at courts across America. These cases were granted class action status Dec. 1.

Sony BMG met lawyers from the firm handling the class action suit in early December and engaged in “”virtual round-the-clock settlement negotiations”", according to the settlement filing, which has been posted on the Sunbelt Software Web site.

In the settlement filing, Sony states that it will immediately recall all XCP CDs and replace them with non-content-protected CDs. It has also agreed to offer incentives to U.S. customers to “”ensure that XCP CDs are promptly removed from the market.”" Sony first released details about its CD recall scheme in late November.

link: Read the entire article here…