Microsoft Cleans Up Sony's Mess

Microsoft to remove Sony's invasive DRM software. Cingular puts the power of radio in the palm of your hand…. Rent-by-mail DVDs are the way of the future…. and more.

Microsoft said it would remove controversial copy-protection software that CDs from music publisher Sony BMG install on personal computers, deeming it a security risk to PCs running on Windows.

The XCP program, developed by First4Internet in Britain and used on music CDs by Sony BMG to restrict copying and sharing, has generated concern amongst computer users, because it acts like virus software and hides deep inside a computer where it leaves the backdoor open for other viruses.

"We have analyzed this software and have determined that in order to help protect our customers, we will add a detection and removal signature for the rootkit component of the XCP software to the Windows AntiSpyware beta, which is currently used by millions of users," Jason Garms, group program manager of the Anti-Malware Technology Team, said on Microsoft's Technet blog.

Other computer virus fighters such as Sophos in Britain have offered a removal kit but have stressed it was a tricky operation resembling open heart surgery.

Sony BMG last week provided a patch to make the program more visible after the discovery that hackers had taken advantage of the weakness to install viruses on PCs.

Sony BMG's patch does not remove the program, which installs itself on a Windows-operated personal computer when consumers want to play certain Sony BMG music CDs. According to programmers it still leaves a security hole.

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Radio in your pants: Cingular Wireless introduced a radio service for its mobile phone customers, using about 40 channels of commercial-free music from Music Choice and MobiTV's streaming media service.

The service, which runs over data connections to Cingular's phones, is its latest effort to expand beyond voice phone calls. It also plans a song download service as music is expected to become the next popular feature for cell phones.

Privately held MobiTV also delivers video clips to Cingular and Sprint mobile phones. Music Choice, which is providing the music channels to Cingular, is a partnership of several technology and media firms.

Cingular, the wireless venture of SBC (SBC) and BellSouth (BLS), is charging $7 a month for the MobiRadio service, plus airtime charges.

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Europe's lazy too: The online DVD rental market is expected to capture a quarter of all video rental spending in the United States and one-third in Europe by 2009 as consumers get more comfortable paying for the convenience of receiving Hollywood blockbusters in the mail.

By the end of 2005, 6.3 million subscribers will have spent more than $1 billion renting DVDs over the internet, with the market seen tripling to almost $3 billion in four years despite the growing threat of video-on-demand services.

The U.S. online rental business is led by industry pioneer Netflix (NFLX), while in Europe the diverse number of players has led to speculation of rampant consolidation.

Netflix has been locked in an expensive battle for dominance of the U.S. market with struggling video rental company Blockbuster (BBI), which abandoned late fees at stores as part of its strategy to keep customers.

Netflix originally had plans to expand in Europe but has opted instead for the time being to focus on its domestic business. Video Island and LoveFilm are the top two in Britain, which accounts for 40 percent of Europe's subscribers.

Screen Digest forecast that by 2009 60 percent of all UK spending on rental will be online, quintuple the 12 percent expected for 2005.

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Where's my $*!@! document?: Microsoft released a business version of software that aims to help people more quickly find documents, e-mail and other data stored on Windows-based computers.

The free new desktop search product comes after years of complaints over how hard it can be to locate Microsoft Word documents, sort through long e-mail lists and find other data people use during the workday.

The software will feel similar to Microsoft's consumer offering for searching files on desktop computers. But the product is designed so corporate technology executives can easily install it on many computers simultaneously, and better control how it is used.

The product also will work with products that search corporate networks, including those offered by competitors.

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Compiled by Keith Axline. AP and Reuters contributed to this report.