ComputerWorld reports that people who bought CDs with the controversial XCP copy control software will get refunds. Under terms of the settlement, people who purchased XCP-protected CDs can apply for either a cash payment of $7.50 plus a free album download, or three album downloads, whichever they prefer.

"This settlement gets music fans what they thought they were buying in the first place: music that will play on all their electronic devices without installing sneaky software," Cindy Cohn, legal director of the Electronic Frontier Foundation (EFF), said in a statement. The EFF represented plaintiffs in the case. Sony issued a statement saying it was pleased with the settlement.

Computer science researchers also found problems with another type of software Sony put on some CDs, called MediaMax. That software, written by SunnComm International Inc., installs software without the user's permission, is difficult to uninstall and surreptitiously transmits information about users activities to SunnComm's servers. Customers who bought MediaMax CDs can now get free downloads.