There have been even further developments on the Sony BMG root kit debacle since the last time we updated you. The reports that Sony artists were unhappy that the company had been caught compromising consumers' computers were confirmed by Newsweek. That magazine reported that Trey Anastasio's Shine, which was released on November 1, the day after the story broke, sold 15,000 copies in its first week, but plummeted to 7,000 by week two, when the story was all over the press. Since then, all 52 albums with the XCD "protection" have been pulled. Patrick Jordon, director of marketing at Red Light Management, which reps Anastasio, said, "It's been damaging, and certainly we're going to discuss that with the label."

Jordan, sounding like one of the good guys, told Newsweek, " As managers, we've always supported trusting our fans. Copy protection has nothing to do with trust."

Benjamin Edelman took the company to task for dragging its feet on notifying consumers that they might be at risk. He noted that hacker hero Mark Russinovich, who initially broke the root kit story, had demonstrated that the root kit incursion installed spyware on consumers' computers that checks in to Sony every time a consumer plays an "XCP-affected" disc. Why not use that, Edelman asked, to inform users of the existence of the cloaked program and let them know their rights and choices?

Maybe because they don't want you to know, or exercise, your rights and choices?

Ultimately, it won't be about what Sony wants. The company has alienated its own artists with its actions, not to mention consumers. There are at least three consumer lawsuits pending (including one brought by the EFF) and one law-enforcement action. Living up to Texas' unofficial state motto ("Don't Mess With Texas!"), Texas Attorney General Greg Abbott sued Sony for engaging in "technological version of cloak and dagger deceit against consumers by hiding secret files on their computers."

Abbott's website concludes, "Because of alleged violations of the Consumer Protection Against Computer Spyware Act of 2005, the Attorney General is seeking civil penalties of $100,000 for each violation of the law, attorneys’ fees and investigative costs." Ouch, you know that's gotta hurt.

In other sleazy-business-practices-by-a-Big-Four-record-label related news, Warner Music Group will pay $5 million to settle a New York State probe into its "pay for play" activities. Besides agreeing to pay the five million bucks into a special fund that will support music education and appreciation programs, Warner agreed to stop making payoffs in return for airplay if New York State Attorney General Elliot Spitzer would stop suing it for doing so.

In response to the news, WMG stock skyrocketed 5¢/share on the NYSE.