Consumers win one against corrupted CDS. Fahrenheit Entertainment, Music City Records, and Sunncomm have decided to settle with the consumers who sued over the copy-protection scheme on Charley Prides CD "A Tribue to Jim Reeves". The Press release is below.

Sunncomm and Music City Records Agree to Resolve Consumer Music "CD-Cloqueing" Law Suit by Providing Better Notice and Enhancing Consumer Privacy

FOR IMMEDIATE RELEASE

San Rafael, February 22, 2002

Sunncomm and Music City Records agreed today to settle a suit brought against them by a California women arising out of Sunncomm?s "cloquing technology" used on Music CDs that allegedly acted against the reasonable expectations of consumers by electronically tracking consumers listening habits and preventing consumers from spaceshifting songs to portable MP3 players.

The lawsuit, (entitled DeLise v. Fahrenheit Entertainment, Music City Records, and Sunncomm) was filed in Marin County Superior Court in September, 2001 and alleged that Music City Records failed to disclose that unlike millions of Music Compact Discs sold before it that Music City's CD entitled "Charley Pride - A Tribute to Jim Reeves" would not work on standard audio CD players found on millions of personal computers, that electronic music files made available for download pursuant to purchase of its CD were proprietary in nature, that such electronic music files would not work on portable MP3 players, and that the CD included a proprietary electronic music scheme that tracked, stored, and disseminated specific consumer personal identifying information, listening data, and downloading habits to entities beyond the control of the consumer. The suit also alleged that there was no practical way to opt-out of the data collection or destroy the data once it is collected. The suit requested relief from the Court to stop the alleged privacy intrusion and to provide better consumer notices.

According to the settlement agreement summarized below, the "Defendants", Music City Records, Fahrenheit Entertainment, and Sunncomm, agreed to the following consumer remedies in the United States so long as they maintain the Sunncomm or similar "Cloqueing" (Digital Rights Management) technology on the music CD entitled "Charley Pride" a Tribute to Jim Reeves" ("Charlie Pride CD"):

Privacy
1. Defendants shall immediately ensure that any and all Internet music file downloads and listening of the music contained or arising out of said Charlie Pride CD are always anonymous and personal identifying information including, but not limited to, e-mail address and IP addresses shall not be required nor obtained as a condition of downloading (including file downloads from sunncomm.com) or playing or listening to the CD or music files, thereby protecting consumer privacy.

2. Defendants shall immediately purge all personal identifying information (including e-mail addresses and IP addresses) obtained via the music file downloading process to date.

3. Defendants shall amend their privacy policy(s) to advise consumers that all Internet file downloads of the music contained on the Charlie Pride CD are anonymous.

Right of First Sale
4. Defendants shall not impair or limit in any manner the ability and right of consumers to lawfully sell or transfer ownership of the Charlie Pride CD to others who shall have the equal ability to download related digital music files;

Return Policy
5. Defendants shall immediately begin accepting from consumers not satisfied with the Charlie Pride CD due to problems with playability on their CD player, computer CD player, or electronic or portable playing device

Platform Notices
6. Defendants shall include a warning that the Charlie Pride CD is not designed to work in DVD players or Computer CD-ROM players;

7. Defendants shall include a warning of the minimum system requirements for playing the downloadable encrypted digital music files on a computer, including Microsoft Windows 98 and above and Microsoft Windows Media Player 7.0 and above and access to the Internet;

Spaceshifting Notices
8. Defendants shall include a warning that the Charlie Pride CD and encrypted digital music file downloads are not compatible with MP3 rippers and players and are not compatible with MP3 electronic playing devices; .

9. Defendants shall include a notice to visit a web page with a simple URL for an updated list of known compatibility problems related to computers. CDplayers, and digital music playing devices;

10. Defendants shall include a warning that the downloadable encrypted digital music files of the songs contained on the Charlie Pride CD may only be downloaded six times.


"I am very satisfied with the settlement we obtained for the benefit of the General Public,I applaud Music City and Sunncomm in deciding to resolve this case and to give consumers better notice so consumers can make an informed decision as to whether they want to purchase such functionally impaired CDs" said Karen DeLise plaintiff in the case. "Sunncomm and Music City, in our view, have an obligation if they want to implement Digital Rights Management technology on their music CDs to do so responsibly, with notice, so consumers can make an informed decision about whether to buy such burdened CDs. We are hopeful that this settlement will create a model for other record companies to follow if they want to sell functionally inferior music CDs by making them different from the millions of CDs sold in the past" said Ira Rothken, an attorney representing the Plainitffs.

If you wish to discuss this case or have any questions please contact Plaintiffs lead counsel, Ira Rothken of THE ROTHKEN LAW FIRM at 415-924-4250 or via e-mail at ira@techfirm.com. The law firm web site is located at http://www.techfirm.com.

A copy of the settlement agreement can be found here http://www.techfirm.com/sunnk.pdf