13286 Federal Register / Vol. 72, No. 54 / Wednesday, March 21, 2007 / Notices 

1The comment must be accompanied by an 

explicit request for confidential treatment, 

including the factual and legal basis for the request, 

and must identify the specific portions of the 

comment to be withheld from the public record. 

The request will be granted or denied by the 

Commission’s General Counsel, consistent with 

applicable law and the public interest. See 

Commission Rule 4.9(c), 16 CFR 4.9(c). 

FEDERAL TRADE COMMISSION 

[File No. 062 3019] 

Sony BMG Music Entertainment; 

Analysis of Proposed Consent Order 

To Aid Public Comment 

AGENCY: Federal Trade Commission. 

ACTION: Proposed consent agreement. 

SUMMARY: The consent agreement in this 

matter settles alleged violations of 

federal law prohibiting unfair or 

deceptive acts or practices or unfair 

methods of competition. The attached 

Analysis to Aid Public Comment 

describes both the allegations in the 

draft complaint and the terms of the 

consent order—embodied in the consent 

agreement—that would settle these 

allegations. 

DATES: Comments in response to this 

notice must be received on or before 

March 23, 2007. 

ADDRESSES: Interested parties are 

invited to submit written comments. 

Comments should refer to ‘‘Sony BMG 

Music, File No. 062 3019,’’ to facilitate 

the organization of comments. A 

comment filed in paper form should 

include this reference both in the text 

and on the envelope, and should be 

mailed or delivered to the following 

address: Federal Trade Commission, 

Office of the Secretary, Room 135–H, 

600 Pennsylvania Avenue, NW., 

Washington, DC 20580. Comments 

containing confidential material must be 

filed in paper form, must be clearly 

labeled ‘‘Confidential,’’ and must 

comply with Commission Rule 4.9(c). 

16 CFR 4.9(c) (2005).1 The FTC is 

requesting that any comment filed in 

paper form be sent by courier or 

overnight service, if possible, because 

U.S. postal mail in the Washington area 

and at the Commission is subject to 

delay due to heightened security 

precautions. Comments that do not 

contain any nonpublic information may 

instead be filed in electronic form as 

part of or as an attachment to e-mail 

messages directed to the following email box: consentagreement@ftc.gov. 

The FTC Act and other laws the 

Commission administers permit the 

collection of public comments to 

consider and use in this proceeding as 

appropriate. All timely and responsive 

public comments, whether filed in 

paper or electronic form, will be 

considered by the Commission, and will 

be available to the public on the FTC 

Web site, to the extent practicable, at 

http://www.ftc.gov. As a matter of 

discretion, the FTC makes every effort to 

remove home contact information for 

individuals from the public comments it 

receives before placing those comments 

on the FTC Web site. More information, 

including routine uses permitted by the 

Privacy Act, may be found in the FTC’s 

privacy policy, at http://www.ftc.gov/ 

ftc/privacy.htm. 

FOR FURTHER INFORMATION CONTACT: 

Matthew Daynard (202/326–3291), 

Bureau of Consumer Protection, 600 

Pennsylvania Avenue, NW., 

Washington, DC 20580. 

SUPPLEMENTARY INFORMATION: Pursuant 

to section 6(f) of the Federal Trade 

Commission Act, 38 Stat. 721, 15 U.S.C. 

46(f), and § 2.34 of the Commission 

Rules of Practice, 16 CFR 2.34, notice is 

hereby given that the above-captioned 

consent agreement containing a consent 

order to cease and desist, having been 

filed with and accepted, subject to final 

approval, by the Commission, has been 

placed on the public record for a period 

of thirty (30) days. The following 

Analysis to Aid Public Comment 

describes the terms of the consent 

agreement, and the allegations in the 

complaint. An electronic copy of the 

full text of the consent agreement 

package can be obtained from the FTC 

Home Page (for January 30, 2007), on 

the World Wide Web, at http:// 

www.ftc.gov/os/2007/01/index.htm. A 

paper copy can be obtained from the 

FTC Public Reference Room, Room 130–

H, 600 Pennsylvania Avenue, NW., 

Washington, DC 20580, either in person 

or by calling (202) 326–2222. 

Public comments are invited, and may 

be filed with the Commission in either 

paper or electronic form. All comments 

should be filed as prescribed in the 

ADDRESSES section above, and must be 

received on or before the date specified 

in the DATES section. 

Analysis of Agreement Containing 

Consent Order To Aid Public Comment 

The Federal Trade Commission has 

accepted, subject to final approval, an 

agreement containing a consent order 

from Sony BMG Music Entertainment 

(‘‘Sony BMG’’ or ‘‘respondent’’). 

The proposed consent order has been 

placed on the public record for thirty 

(30) days for receipt of comments by 

interested persons. Comments received 

during this period will become part of 

the public record. After thirty (30) days, 

the Commission will again review the 

agreement and the comments received, 

and will decide whether it should 

withdraw from the agreement or make 

final the agreement’s proposed order. 

This matter involves respondent’s use 

of content protection software, also 

known as Digital Rights Management 

(DRM) software, embedded on its music 

CDs and the use of a proprietary media 

player on many of these CDs that must 

be used to listen to them. When played 

on a Windows-based computer, Sony 

BMG’s DRM software is installed on 

consumers’ computers and restricts the 

use of the audio files and other digital 

material on the CDs. In addition, the 

‘‘XCP’’ and ‘‘MediaMax 5.0’’ versions of 

respondent’s DRM software create 

security vulnerabilities on consumers’

computers, and, when consumers’

computers are connected to the Internet, 

the media player monitors users’

listening habits and sends back relevant 

advertisements. 

According to the FTC complaint, 

Sony BMG engaged in unfair and 

deceptive practices in distributing its 

content-protected CDs. The complaint 

contains two unfairness charges. The 

first count alleges that it was unfair for 

respondent to cause its DRM software, 

which exposed consumers’ to security 

risks, to be installed on consumers’

computers without adequate 

notification and consent. As alleged in 

the complaint, respondent’s ‘‘XCP’’

DRM software contains cloaking 

technology that hides the existence of 

the software from the Windows 

Operating System. The cloaking 

technology creates a security 

vulnerability because malicious 

software that enters users’ computers 

can exploit the cloaking technology to 

conceal itself from the computers’

security software. In addition, 

respondent’s ‘‘MediaMax 5.0’’ DRM 

software creates a ‘‘privilege escalation 

vulnerability’’ that could allow third 

parties who gain physical access to the 

computer but who have lower-privilege 

access to exercise full control over a 

consumer’s computer running the 

Windows Operating System. Consumers 

could not reasonably prevent this injury 

because they did not know of the DRM 

software’s existence or its harmful 

effects. The complaint therefore alleges 

that respondent’s practices caused, or 

were likely to cause, substantial 

consumer injury that consumers could 

not reasonably avoid and which was not 

outweighed by countervailing benefits 

to consumers or competition. 

The complaint further alleges as 

unfair respondent’s practices in causing 

its DRM software that made computers 

insecure to be installed without 

providing a reasonable means to locate 

and/or remove it. As alleged in the 


jlentini on PROD1PC65 with NOTICES
Federal Register / Vol. 72, No. 54 / Wednesday, March 21, 2007 / Notices 13287 

complaint, Sony BMG’s use of cloaking 

technology and the failure of the ‘‘XCP’’

and ‘‘MediaMax 5.0’’ software to appear 

in the Windows ‘‘Add/Remove’’ utility 

hid the existence of the software from 

consumers and their operating systems. 

In addition, respondent failed to make 

an uninstall tool readily available. The 

complaint alleges that, as a result, 

consumers incurred substantial costs in 

locating and removing the DRM 

software from their computers and in 

stopping its harmful effects. Thus, the 

complaint alleges that respondent’s 

practices in failing to provide a 

reasonable means to locate and remove 

its DRM software caused, or were likely 

to cause, substantial consumer injury 

that could not be reasonably avoided by 

consumers and did not provide 

countervailing benefits to consumers or 

competition. 

In addition, the complaint challenges, 

as deceptive, Sony BMG’s failure to 

disclose adequately that its music CDs 

install onto computers software that 

materially limits their use by limiting 

the number of disc-to-disc copies that 

consumers can make, and by restricting 

consumers’’ ability to transfer to and 

play music on digital playback devices 

other than Sony BMG and Microsoft 

devices. Finally, the proposed 

complaint alleges as deceptive 

respondent’s undisclosed inclusion of 

its media player, which monitors the 

artists that consumers listen to on their 

computers and displays advertising. 

The proposed consent order contains 

provisions designed to enhance and 

expand upon respondent’s programs to 

provide refunds to consumers and 

includes injunctive relief to protect 

against future consumer injury from 

similar acts and practices. 

Part I of the proposed order requires 

Sony BMG to include on the front cover 

of the packaging for any contentprotected CD a clear and prominent 

disclosure that important consumer 

information regarding limits on copying 

and use can be found on the rear of the 

product packaging. This provision also 

requires respondent to disclose more 

fully on the back cover that the CD will 

install software, if that is the case; has 

copying limits; and can only be used on 

certain playback devices. Part II bars 

Sony BMG from installing content 

protection software from a CD without 

consumers’ authorization. Specifically, 

before such software can be installed, 

respondent must disclose on the 

consumer’s computer screen the 

information required by Part I and the 

consumer must have signaled her 

consent by clicking on a properly 

labeled button or taking a similar action. 

Further, in cases where Sony BMG 

conditions consumers’ use of its CDs on 

their installing content protection 

software onto their computers, Part III 

requires that respondent clearly and 

prominently disclose this requirement 

on the product packaging. 

Regarding ‘‘enhanced connectivity’’

CDs (CDs containing respondent’s 

proprietary media player that transmits 

non-personally identifiable information 

from consumers’ computers to 

respondent and displays promotional 

messages on consumers’ computers), 

Part IV of the proposed order, which 

applies to enhanced connectivity CDs 

that Sony BMG sells prior to the date 

that this order becomes final, prohibits 

respondent from using any information 

it collects through enhanced 

connectivity CDs for any marketing 

purpose and requires respondent to 

destroy such information within three 

days of receipt. Part IV also prohibits 

Sony BMG from using any such 

information to deliver advertising or 

marketing messages. Part V, which 

applies to enhanced connectivity CDs 

that Sony BMG sells after the order 

becomes final, requires that if, to use a 

CD on a computer, consumers must 

agree to have information collected 

about them, Sony BMG must disclose 

this condition clearly and prominently 

on the product packaging. Further, Part 

V prohibits Sony BMG from collecting 

any information using its enhanced 

connectivity CDs, unless it first 

discloses that the CD will collect 

information and/or send back 

advertising to the computer and obtains 

consumers’ consent to do so. 

In connection with the marketing, 

advertising, or distributing of any CD, 

Part VI prohibits Sony BMG from 

installing content protection software 

that prevents consumers from readily 

locating or removing the software from 

the computer. This prohibition 

includes, but is not limited to, hiding, 

cloaking, using misleading or random 

names for, and misrepresenting the 

purpose or effects of any file, folder, or 

directory associated with such software. 

Part VII requires that respondent 

provide a reasonable and effective 

means to uninstall its content protection 

software. Part VII also provides that 

Sony BMG is not required to uninstall 

the ‘‘counter’’ file of its software that 

determines whether the consumer has 

exceeded the permitted number of 

copies on the computer, as long as 

respondent discloses on consumers’

computer screens, prior to installing the 

content protection software, that this 

file will not be removed and the file 

does not impair, hinder, or otherwise 

adversely affect the computer’s 

operation. Part VII further requires that 

Sony BMG, for a period of two years 

from the date that the order becomes 

final, continue to provide free uninstall 

tools and patches for XCP and 

MediaMax 5.0 and to disclose the 

existence of these tools on its Web site. 

In addition, Part VII of the order 

requires that Sony BMG notify 

consumers of the XCP and MediaMax 

5.0 vulnerabilities and how to fix their 

computers, by extending its existing 

program of purchasing key words on 

search engines to one year after the date 

the order becomes final, and also by 

publishing a notice through its Web site. 

Part VIII of the proposed order makes 

clear that all purchasers, prior to 

December 31, 2006, of XCP and 

MediaMax CDs are eligible to 

participate in its ongoing compensation 

program. Part VIII also requires Sony 

BMG to extend the period for accepting 

exchanges to six months after December 

31, 2006. Further, Part VIII of the order 

requires that Sony BMG reimburse 

consumers up to $150 of their costs to 

repair computer damage resulting from 

their attempts to remove the XCP 

content protection software before 

respondent made an uninstall tool 

readily available. Finally, Part VIII 

requires Sony BMG to publish notices 

on its Web site informing consumers 

about the extended period for 

exchanging CDs and the ‘‘repair 

reimbursement’’ program. 

Part IX of the proposed order requires 

that, before selling MediaMax CDs from 

its inventory, Sony BMG must make 

applicable disclosures about copying 

and use restrictions on the product 

packaging. In the case of MediaMax 5.0 

CDs, Sony BMG also must disclose on 

the packaging that, if used on a 

computer, these CDs will create security 

vulnerabilities that consumers can 

eliminate with a patch that they can 

download, free of charge, from 

respondent’s Web site, and establish an 

Internet connection through which Sony 

BMG will collect information from, and 

send back advertising to, the computer. 

Also, with respect to MediaMax 5.0 CDs 

that Sony BMG has sold to retailers, Part 

IX requires that it offer retailers the 

same financial incentives to return these 

CDs as those for XCP CDs. Further, Sony 

BMG must offer these incentives for two 

years after the date the order becomes 

final. 

Parts X through XIII of the proposed 

order are record-keeping and reporting 

provisions. Part XIV provides that the 

order will terminate after twenty (20) 

years under certain circumstances. 

The purpose of this analysis is to 

facilitate public comment on the 

proposed order, and it is not intended 

to constitute an official interpretation of 


jlentini on PROD1PC65 with NOTICES
13288 Federal Register / Vol. 72, No. 54 / Wednesday, March 21, 2007 / Notices 

the agreement and proposed order or to 

modify in any way their terms. 

By direction of the Commission. 

Donald S. Clark, 

Secretary. 

[FR Doc. 07–1403 Filed 3–20–07; 8:45 am] 

BILLING CODE 6750–01–P 

DEPARTMENT OF HEALTH AND 

HUMAN SERVICES 

Centers for Disease Control and 

Prevention 

CDC/HRSA Advisory Committee on 

HIV and STD Prevention and Treatment 

In accordance with section l0(a)(2) of 

the Federal Advisory Committee Act 

(Pub. L. 92–463), the Centers for Disease 

Control and Prevention and the Health 

Resources and Services Administration 

announce the following meeting of the 

aforementioned committee. 

Times and Dates: 8 a.m. – 5 p.m., May 

7, 2007. 8 a.m. – 12:30 p.m., May 8, 

2007. 

Place: Embassy Suites Hotel Atlanta 

Buckhead, 3285 Peachtree Road, NE., 

Atlanta, Georgia, Telephone 404/261–

7733, Fax 404/262–0522. 

Status: Open to the public, limited 

only by the space available. The meeting 

room will accommodate approximately 

100 people. 

Purpose: This Committee is charged 

with advising the Director, CDC and the 

Administrator, HRSA, regarding 

activities related to prevention and 

control of HIV/AIDS and other STDs, 

the support of health care services to 

persons living with HIV/AIDS, and 

education of health professionals and 

the public about HIV/AIDS and other 

STDs. 

Matters To Be Discussed: Agenda 

items include issues pertaining to (1) 

Priorities for STD Prevention (2) HIV 

Strategic Plan Implementation and (3) 

Leveraging Federal Partnerships for 

HIV/STD Prevention. Agenda items are 

subject to change as priorities dictate. 

Contact Person for More Information: 

Margie Scott-Cseh, Committee 

Management Specialist, National Center 

for HIV, STD, and TB Prevention, 1600 

Clifton Road, NE., Mailstop E–07, 

Atlanta, Georgia 30333. Telephone 404/ 

639–8317, Fax 404/639–8600, e-mail 

zkr7@cdc.gov. 

The Director, Management Analysis 

and Services Office, has been delegated 

the authority to sign Federal Register 

Notices pertaining to announcements of 

meetings and other committee 

management activities, for both the 

Centers for Disease Control and 

Prevention and the Agency for Toxic 

Substances and Disease Registry. 

Dated: March 14, 2007. 

Elaine L. Baker, 

Acting Director, Management Analysis and 

Services Office, Centers for Disease Control 

and Prevention. 

[FR Doc. 07–1374 Filed 3–20–07; 8:45 am] 

BILLING CODE 4163–18–P 

DEPARTMENT OF HEALTH AND 

HUMAN SERVICES 

Food and Drug Administration 

Medical Devices Dispute Resolution 

Panel of the Medical Devices Advisory 

Committee; Notice of Meeting 

AGENCY: Food and Drug Administration, 

HHS. 

ACTION: Notice. 

This notice announces a forthcoming 

meeting of a public advisory committee 

of the Food and Drug Administration 

(FDA). The meeting will be open to the 

public. 

Name of Committee: Medical Devices 

Dispute Resolution Panel of the Medical 

Devices Advisory Committee. 

General Function of the Committee: 

To provide advice and 

recommendations to the agency on 

scientific disputes between the Center 

for Devices and Radiological Health and 

sponsors, applicants, and 

manufacturers. 

Date and Time: The meeting will be 

held on April 19, 2007, from 8:30 a.m. 

to 5:30 p.m. 

Location: Holiday Inn, Ballroom, Two 

Montgomery Village Ave., Gaithersburg, 

MD. 

Contact Person: Nancy Collazo-Braier, 

Center for Devices and Radiological 

Health (HFZ–1), Food and Drug 

Administration, 9200 Corporate Blvd., 

Rockville, MD 20850, 240–276–3959, email: nancy.braier@fda.hhs.gov, or FDA 

Advisory Committee Information Line, 

1–800–741–8138 (301–443–0572 in the 

Washington, DC area), code 

3014510232. Please call the Information 

Line for up-to-date information on this 

meeting. 

Agenda: The committee will discuss, 

make recommendations, and vote 

regarding a scientific dispute between 

the agency and Cardima Inc. related to 

the not-approvable determination for 

the premarket approval application 

(PMA) for the REVELATION Tx 

Microcatheter with NavAblator Ablation 

System, indicated for the treatment of 

drug refractory paroxysmal atrial 

fibrillation. 

FDA intends to make background 

material available to the public no later 

than 1 business day before the meeting. 

If FDA is unable to post the background 

material on its Web site prior to the 

meeting, the background material will 

be made publicly available at the 

location of the advisory committee 

meeting, and the background material 

will be posted on FDA’s Web site after 

the meeting. Background material is 

available at http://www.fda.gov/ohrms/ 

dockets/ac/acmenu.htm, click on the 

year 2007 and scroll down to the 

appropriate advisory committee link. 

Procedure: Interested persons may 

present data, information, or views, 

orally or in writing, on issues pending 

before the committee. Written 

submissions may be made to the contact 

person on or before April 5, 2007. Oral 

presentations from the public will be 

scheduled between approximately 9 

a.m. and 9:30 a.m. and between 

approximately 1:30 p.m. and 2 p.m. 

Those desiring to make formal oral 

presentations should notify the contact 

person and submit a brief statement of 

the general nature of the evidence or 

arguments they wish to present, the 

names and addresses of proposed 

participants, and an indication of the 

approximate time requested to make 

their presentation on or before March 

28, 2007. Time allotted for each 

presentation may be limited. If the 

number of registrants requesting to 

speak is greater than can be reasonably 

accommodated during the scheduled 

open public hearing session, FDA may 

conduct a lottery to determine the 

speakers for the scheduled open public 

hearing session. The contact person will 

notify interested persons regarding their 

request to speak by March 29, 2007. 

Persons attending FDA’s advisory 

committee meetings are advised that the 

agency is not responsible for providing 

access to electrical outlets. 

FDA welcomes the attendance of the 

public at its advisory committee 

meetings and will make every effort to 

accommodate persons with physical 

disabilities or special needs. If you 

require special accommodations due to 

a disability, please contact Ann Marie 

Williams, Conference Management 

Staff, at 301–827–7291, at least 7 days 

in advance of the meeting. 

Notice of this meeting is given under 

the Federal Advisory Committee Act (5 

U.S.C. app. 2). 


jlentini on PROD1PC65 with NOTICES