Label to Disclose CD Protections

An independent record label has agreed to provide more detailed disclosures to consumers about its copy-protected CDs, settling a lawsuit brought by a California resident.

Karen DeLise of Marin County sued after buying the Music City Records release “Charley Pride--A Tribute to Jim Reeves,” which uses technology from Sunncomm Inc. to deter digital copying. The technology is designed to prevent consumers from playing the CD on their computers, stopping them from creating MP3 files that could be shared over the Internet.

Under the settlement, Music City, its distributor Fahrenheit Entertainment and Sunncomm agreed to make a more extensive disclosure about what consumers can’t do on the packages of the CD. The settlement sets no precedents and won’t apply to other secure CDs. Ira Rothken, DeLise’s attorney, said, “We are hopeful that the record industry will look to this settlement agreement for guidance on how to balance digital-rights-management schemes in music CDs with protecting consumer privacy, reducing consumer annoyance and providing adequate notice.”