November 7, 2005 4:00 AM PST

Perspective: Why they say spyware is good for you

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Sony rightly came under fire last week from programmers and Internet users for injecting an undetectable copy-prevention utility into Microsoft Windows when certain CDs are inserted.

Now the lawyers are taking aim, too. Robert Green, a partner at the San Francisco firm of Green Welling, says he's readying a class action lawsuit against Sony.

"We're still investigating the case and talking to different people about what happened to them," Green said on Friday. He plans to argue that under California law, if you buy a copy-protected CD from a music store, you should be informed that a spyware-like utility will be implanted on your hard drive.

The fuss last week began when Mark Russinovich, a Windows programmer and author, posted a description of how he traced some mysterious processes and hidden files on his computer back to SonyBMG's "Get Right with the Man" CD. It turned out that they were part of Sony's digital rights management technology designed to thwart illicit copying.

It's a wacky result when both Sony and its hapless customers could be embroiled in legal hot water at the same time.

Sony has backpedaled a little, saying that the hidden files can be uncloaked. But customers still have to beg for help if they want to uninstall the software.

Still, it may be too late for the entertainment giant to fend off the plaintiff's bar. One recent court case in Illinois, Soleto v. DirectRevenue, sets a nonbinding precedent that lawyers expect to be invoked against Sony.

In that case, DirectRevenue was sued for installing spyware on Windows computers without obtaining proper authorization from a user. U.S. District Judge Robert Gettleman said the company could be sued on trespass, Illinois consumer fraud, negligence, and computer tampering grounds.

Then there's a California spyware-related law that says a company may not "induce" anyone to "install a software component" by claiming installation is necessary to "open, view or play a particular type of content."

Translation: Sony could be in double trouble. Its Windows software is hardly necessary to play music--the disc works just fine on a Macintosh or in an old-fashioned CD player.

Meanwhile, dozens of other states are considering similar laws, each with slightly different wording. So is Congress.

The blunderbuss of the DMCA
In a bizarre twist, though, it's not only Sony that could be facing a legal migraine. So could anyone who tries to rid their computer of Sony's hidden anticopying program.

That's because of Section 1201 of the Digital Millennium Copyright Act, which bans the "circumvention" of anticopying technology.

"I think it's pretty clear that circumventing Sony's controls violates the DMCA," says Tim Wu, a Columbia University professor who teaches copyright law. (Violations of the DMCA include civil fines, injunctions, computer confiscations, and even criminal penalties.)

Wu noted that one possible reprieve might come from last year's ruling from a federal appeals court in a case dealing with garage door openers--it said no copyright violations were taking place, so no DMCA violation occurred. Then again, another federal appeals court objected to bypassing anticopying technology used in DVDs, which is probably a closer analogy.

A bizarre result
If your head isn't spinning by now, it should be. It's a wacky result when both Sony and its hapless customers could be embroiled in legal hot water at the same time.

These citations to state laws, federal statutes and common law torts above should demonstrate an obvious point: The American legal system is, all too often, used as a weapon against businesses or individuals who can't hope to comply with every regulation on the books. Entrepreneurs write checks to law firms instead of developing products. Guilt and innocence turn too often on technicalities rather than whether an action was inherently right or wrong.

Why? As Manhattan Institute fellow Walter Olson documents on OverLawyered.com, our legal system is set up to encourage lawsuits. They're easy to file and difficult to dismiss. Plus, politicians receive attention by enacting new laws, not by repealing them. No wonder the Federal Register was growing by between 55,000 and 70,000 pages annually even by the first Bush presidency.

In one 1999 class action lawsuit ostensibly filed on behalf of flight attendants against tobacco companies, for instance, the attendants received nothing in the settlement. But the lawyers pocketed $49 million. After Microsoft's federal antitrust suit was over, dozens of class action suits sprouted, yielding negligible benefits for consumers--but fat paychecks for the lawyers involved.

Of course, malicious behavior that harms someone else should be unlawful. But whatever happened to the concept of a few basic rules--don't steal, don't commit fraud--rather than thousands of pages of bureaucratelia that few of us can hope to understand, let alone follow?

Biography
Declan McCullagh is CNET News.com's chief political correspondent. He spent more than a decade in Washington, D.C., chronicling the busy intersection between technology and politics. Previously, he was the Washington bureau chief for Wired News, and a reporter for Time.com, Time magazine and HotWired. McCullagh has taught journalism at American University and been an adjunct professor at Case Western University.

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...--the disc works just fine on a Macintosh...
Music to my ears!
Posted by Microbreak (61 comments )
Reply Link Flag
And on my PC too
As I don't have auto-run enabled on CD's. Or, if I understand it, you could just say no to installing the software. But that is not the point.
When you say yes to installing software (on any platform), you assume the vendor will just put on what they say they are installing. What was the last piece of software you put on your Mac that needed the Root password? Do you trust them not to install a Root kit? They can. That is the point.
Posted by catchall (245 comments )
Link Flag
you should still be very concerned
Dont be fooled into thinking that it could not be done on OSX or Linux Unix etc etc etc. And if youre an iTunes user then you already know that Apple has DRM. Apple is becoming a popular platform and I expect that to only increase. We are already downloading security patches for our Macs and all it takes is a greedy company (for example someone like Sony) to hide something on your computer. Though not malicious in nature OSX has a few of its own hidden files and folders no visible in Finder <a class="jive-link-external" href="http://www.westwind.com/reference/OS-X/invisibles.html" target="_newWindow">http://www.westwind.com/reference/OS-X/invisibles.html</a>
In this case its a good idea to rally behind the Windows users as it does effect us all.
Posted by Buzz_Friendly (74 comments )
Link Flag
more than *just* spyware
this is a rootkit that damages the PC so I think the term spyware isn't strong enough here. This is a blatent hack by Sony.. Take some time to study this case and you will probably be done buying Sony products just like I am.. I'd say this is triple trouble for Sony
Posted by aabcdefghij987654321 (1721 comments )
Reply Link Flag
Re: ... this is triple trouble for Sony
Until they can "convince" enough lawmakers to make this perfectly legal. Maybe they should see if the RIAA is willing to time share their supporters inside the beltway.
Posted by rcrusoe (1305 comments )
Link Flag
Why they say spyware is good for you
What is Sony's problem? Copying for personal use has never really been an enforceable copyright violation. It has been done for decades. It was done from disk recordings to tapes, cassettes to tapes and 8 tracks, all of the above to CD and CD to CD. Most of us got a Record Alblum because we liked several songs; same for cassettes and CD recordings. We would copy the songs we like onto another tape or CD so we didn't have to change the track or CD to listen to the songs we like. Nobody ever objected to it before. Now Sony wants to stop a fifty year old tradition in consumer listening.
Posted by GEBERWEIN (75 comments )
Reply Link Flag
More then just a tradition
It is part of fair use, which has been under attack by short-sighted media companies and they paid stooges in the government.

I think this is a good thing to happen. Nothing bad can come from SOny shooting itself in the foot.

If only the people that get ripped off by the record companies(aka artists) will stand up to this sort of thing and move away. Of course, many of them with out massive marketing to the MTV viewing sheep would still be in the garage, which is another bonus. I find it hard to believe that so many recording artists get ripped off by the record companies and they rarely complain. The bands and singers pay for nearly everything, including promotion, while the record companies get the majority of the profits.

The internet should be used more wisely. Truly good artists could be able to get their music out and totaly circumvent the decaying record companies.

Record companies could also help themselves, offer high quality, uncompressed music for $1 a song and no DRM in sight. Not only would it help in positive relations for once, it would help sagging profits, and it would stop the practice of putting one or two decent songs on a CD of 10-12 songs. Of course, bands that can't come up with more then 1 decent song every few years will be hurt, and that is how it should be.
Posted by Bill Dautrive (1179 comments )
Link Flag
big fat legal mix-up
The focus of this particular article should really consider the problem with the legislative process. DRM presents a specific problem with individual righgts to information and privacy. The rootkit situation makes this painfully evident. Software manufacturers have benefited from the shrink wrap license for a long time. The result is the ability of the manufacturer to control the legal rights of the end user. This situation makes it appear that the manufacturer can install software on a user's machine against their will. This violates state laws banning spyware, which the Author indicates comes from state tort common law. Ideally, this is a trespass. From the accademically legal prospective, the federal courts would have to weigh the federal restrictions protecting copyrights against the established trespass law of the states. The question becomes what constitutes property owned by the individual. The intelectual property of Sony is the music, but does that include the computer and operating system of the end user? This presents a fundamental conflict between ownership that the legislative system is, so far, unable to distinguish between these vested presonal interests. We need to worry more about increased governmental control of personal computing, and inform our legislators that there is a limit the restrictions protecting intellectual property rights when they begin to infringe upon individual property rights. I purchased my computer, the hardware belongs to me. It is my identifiable personal property. The law should not infringe my right to own and use corporeal property in order to protect the unidentifiable property right of businesses like Sony and Microsoft. The law has to strike the balance, but we need to inform legislators that they should protect our rights, and not allow campaign contributions from economical juggernauts control the direction of the law at the expense of personal liberty.
Posted by thedonnybrook (5 comments )
Reply Link Flag
Here comes the Lawyers' Brigade
Come on people. When is everyone going to wake up and see it for what it is? The lawyers want the money out of anything they can get their hands on. It's never been about the consumers and/or the artists. The record companies and the lawyers are after the same purpose/objective; "MONEY." The record companies take it from the consumers in selling music and merchandise, the lawyers take it from the record companies in the name of "defending the consumers" they claim. But, the "consumers" never get to see a dime of any settlements. In the meanwhile, the lawyers get multimillion dollars paychecks.
Money, Money, Money, Money, Money ...
Posted by Dead Soulman (245 comments )
Reply Link Flag
So what happens
If I reformat my computer? I haven't bought a CD since 1998. I don't feel the need to pad the pockets of people who took my money for 45's, LP's, 8-tracks, cassettes AND Cd's and treat me like I'm a criminal. (Yes, I am old enough to have bought 45's.)

I run no risk of picking up this completely unethical piece of malware, spyware...whatever.

But say I did. Say I want to reformat my computer which I like to do at least once a year. Am I going to jail for circumventing DRM copyright crap?

This will go nowhere. One cannot prevent a computer user from reformatting or repairing their system...yet.
Posted by ded63 (5 comments )
Reply Link Flag
I found spyware on a brand new HD
A Western Digital 120gb, fresh out of the wrapper. Installed only the OS, then I installed the lastest versions of Adaware &#38; Spybot that I had previously downloaded. Nothing else. After the installs, before I ever went online, I ran the two utilities and came up with 2 programs listed as spyware, which I then removed. One had been preinstalled by Western Digital. Nothing surprises me in this regard after that. I do like that HD, though.
Posted by (62 comments )
Reply Link Flag
What?
I was under the impression that all new hard drives were sold unformatted. Since I have bought three hard drives in the past two years, that has always been the case. When windows installs it should create new partitions regardless, rendering any previously written data useless. Are you sure that there was no other way the software could have gotten there? Or was it the hard-drive utilities that showed up as spyware?
Posted by k98sniper (1 comment )
Link Flag
I was going to buy
The next gen. sony playstation, but if there willing to put this stuff on music cd's god knows what kind of hack tricks they maybe willing to put on game cd's.

Like hack code that kills your console to make you buy another.
Posted by simcity1976 (136 comments )
Reply Link Flag
The cost of removing Sony's software
Sony's spyware can ne removed. But there are costs involved that Sony should be made to cover:

It takes time: you have to call them, wait for them to answer, follow their instructions...
Maost computer users are not proficient in working with system internals, including just using Windows explorer to go into system folders to remove files. Many only know how to turn on their computer and double-click the icons of the programs they use. Some might make mistakes like removing a similarly named file (or registry entry???)
Some users will have to pay for professional help to follow Sony's instructions. Some users will damage their own system or data in the process: statisticaly it's a certainty that a certain percentage of the users would make such mistakes.
Some users will lose the ability to use their computer during the time it takes to recover their system. This would cost them money, or at least is worth money in the sense that income is lost.

Sony should pay for all these costs. Even if we agree that it is OK that Sony and others use such sleazy tactics, it still doesn't mean that they should not bear the direct and indirect costs involved in it. Certainly the users should not pay for this. It is not the users' rights that are protected here. Whoever is protecting their "right" here should bear the costs involved in the process.
Posted by hadaso (468 comments )
Reply Link Flag
WD drives come with a boot disk...
It's been a while, but the way I rememmber it the WD paper instructions recomended the initial boot up from their boot disk, labeled Data Lifeguard Tools v10.0. This was supposed to maximize the amount of the drive's capacity that the BIOS recognized, + run a diagnostic. It turned out to be a PITA. That was the source for the WD spyware. To be fair, I failed to mention it previously.
Then figure that there is all kind of commercial crap preinstalled by the OS that needs to be culled after an OS install. Not hard to imagine a spyware hiding in there. Mattel Toys was caught some time ago with a spyware (DSSAgent)lurking in a learn to read program they offered for children.
<a class="jive-link-external" href="http://www.salon.com/tech/col/garf/2000/06/15/brodcast/index.html" target="_newWindow">http://www.salon.com/tech/col/garf/2000/06/15/brodcast/index.html</a>
Posted by (62 comments )
Reply Link Flag
Hidden Utilities
I believe it should be illegal for anyone to install hidden utilities on my CPU, without my authorization. I firmly believe that individuals should not be able to copy and distribute copyrighted material; however, I feel that I should be able to copy material that I've purchased, for use on my other play-back devices.

Our society has become so "permissive", that our conscience no longer plays a part in detemining right from wrong!
Posted by Ringmaster1 (10 comments )
Reply Link Flag
My two cents
No matter what anyone tells you, I can prove to you that spyware is bad for the computer. Not only does it send and take in information, add new spyware, update itself to prevent detection. It also "bogs down" the computer's processing speed. Why you may ask? The constant streaming of information between the "spy" and the "user." This also causes holes in the computer's firewall (assuming it has one). Causing security holes is also never a good thing as it brings "unruley" users, who know their way around software as it is, to potentially bring down the computer in question via virus, hack, or even command-line shutdowns. In conclusion, spyware is never a good thing.

P.S. Yes, spyware ALWAYS causes the computer in question to be left vulnerable to the outside world more-so than before any spyware is downloaded (via site, CD, or other spyware).
Posted by JKrieg (1 comment )
Reply Link Flag
Legal quagmire
seems to result from too many people - lawmakers, judges, attorneys, and just plain folks - forgetting the Constitutional principle of presumed innocence. At least in free-speech cases, the principle has been applied that laws resulting in "prior restraint" are in violation, but despite the malfeasants in the various stock scandals having been convicted under existing law, we now have Sarbanes-Oxley and a host of other laws and regulations that far too often inconvenience the honest and law-abiding more than hindering lawbreakers.

And never forget that there's a very wealthy and powerful class of professionals with a vested interest in this legal confusion and conflict - remember the old saying: "if there is one lawyer in a town, he drives an old Ford; if there are two, they both drive new Lincolns"...
Posted by brianmthomas (8 comments )
Reply Link Flag
 

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