CyberTech Rambler

July 12, 2007

Sony suing MediaMax: Symbolic move and keeps lawyers happy

Filed under: Uncategorized — ctrambler @ 3:34 pm

Sony is reported to be suing,  The Amergence Group Inc., formerly SunnComm International , the company that supplies it with the MediaMax Digital Restriction Management. The one that is termed “Rootkit” by people like me because of the way it functions, the one that landed Sony with lawsuit a while ago.

This is a purely symbolic move.  Sony had lost money in recalling the affected CDs, its reputation and consumer trust. Even if successful, the damage is insufficient to overcome this list. The only purpose it will serves is probably to drive SunnComm into bankruptcy. The reason why SunnComm existed as a company is a financial move precisely designed to box in potential damages like this. As such, no harm done to its investors besides losing some money. Besides, they probably had accounted for this before they made the investment, as selling DRMs is still a VC style business.

Sony’s lawyers will probably be pleased by this move. I do not mean happy for the legal fees they are going to be able to collect but drawing a “legal line” on future liabilities for Sony. If not a “legal line”, at least a “legal defense” in the future.

I think this case will be settled out of court. If not, the legal filings will give us a glimpse into the internal struggle between Sony and SunnComm in the rootkit episode. SunnComm lawyers will probably wash Sony’s dirty linen to pursuade Sony to settle.

In conclusion. Not a surprising move. But probably not without further risk to Sony’s reputation.

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