[FYI] (Fwd) FC: Copy protected CD case settled against Music City Records

["Axel H Horns" <horns@ipjur.com>]

------- Forwarded message follows -------
Date sent:      	Fri, 22 Feb 2002 09:46:48 -0500
To:             	politech@politechbot.com
From:           	Declan McCullagh <declan@well.com>
Subject:        	FC: Copy protected CD case settled against Music City Records 
Send reply to:  	declan@well.com


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From: "Ira P. Rothken" <ira@techfirm.com>
To: <declan@well.com>
Subject: Settlement of Cloqued Music CD Case
Date: Thu, 21 Feb 2002 23:45:13 -1200
Organization: Rothken Law Firm
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Declan,

We just settled an interesting case involving "cloqued" (Digital
Rights Management) music CDs.

Below I provide information regarding the suit and a summary of the
settlement.

Here is the actual settlement agreement: 
<http://www.techfirm.com/sunnk.pdf>http://www.techfirm.com/sunnk.pdf

Ira P. Rothken
<mailto:ira@techfirm.com>ira@techfirm.com

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, CA 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 consumersthat 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. CD players, 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
<mailto:ira@techfirm.com>ira@techfirm.com. The law firm web site is
located at <http://www.techfirm.com>http://www.techfirm.com.





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