Sony has spoken: It wants cash, not to be a good corporate citizen.
After seriously damaging its reputation last year when it was revealed Sony used “rootkit” technology, a powerful hacker’s tool, to enforce its digital rights with people who legally bought the company's music CDs, Sony has managed to push through a settlement to a class-action suit in Canada that adds insult to injury.
The proposed settlement, $7.50 plus tax for each customer, is something like 10 per cent lower than the company negotiated with U.S. suitors; worse, Sony tried to conceal an affidavit it made to the court that explains why Canadians should settle for no injunctive relief, while Americans will get injunctive relief against Sony.
Until Internet lawyer Michael Geist unearthed a copy of the affidavit and posted it on-line.
The affidavit says that Sony BMG “does not believe that the Injunctive Provisions are necessary in Canada for three reasons: 1. the Injunctive Provisions were specifically based on the U.S. Government Inquiries, for which there is no counterpart in Canada; 2. the Injunctive Provisions may prove incompatible with Canada's international copyright obligations; and 3. the Injunctive Provisions may prove incompatible with forthcoming federal copyright legislation.
What? Just because the U.S. settlement was based on U.S. law, that means we should get less? Were Canadians no less damaged by Sony’s outrageous technology?
And we should settle for less because a similar settlement might be incompatible with some Canadian copyright legislation that has not even been written, discussed or even seen yet?
Does Sony know something about the Harper government’s plans that others do not?
As well, Sony managed to negotiate away the requirement, stipulated in the U.S. agreement, to disclose any future use of digital-rights management and to provide a program that uninstalls such a system.
Not only is Geist is fuming, so is Ottawa copyright lawyer Howard Knopf, who’s been raging on his blog about it: “This may arguably be the best possible settlement under the circumstances. But that does not necessarily mean that is a good one. The question is whether it is actually better from a public policy standpoint than no settlement. With no settlement, Sony will have no basis boast to a Parliamentary committee about how responsive it is to its victims (oops, customers) and to argue that the system works.”
What has clearly happened here is that even if our laws are flexible enough for Sony's legal department to get an easier settlement, Sony clearly does not care for its reputation. By playing hardball, it's saying it wants cash, not happy customers.
Why not make the settlement the same, and avoid the nasty publicity? Winning this kind of game just makes people more angry with Big Music.
The Ontario court received the deal on Monday, and has set the deadline for objection from the public for Sept. 18, which is this Monday.
Good luck if you want to object.
