Sony BMG record label wanted to minimize losses from illegal music copying and sharing by implementing a powerful XCP copyright protection technology that should not allow illegitimate copying of content. But since the copyright protection technology acted like spyware and could injure computers or compromise their security, Sony BMG now faces plummet of sales, which harms the company's business more than potential piracy. But it seems to be only the beginning for the company, as there are more negative consequences?on the way.

Sony now is facing at least three consumer class-action lawsuits, as well as at least one law-enforcement action. On November 21, Texas attorney general Greg Abbott accused the company of violating the state's laws against computer spyware, reports BusinessWeek.

?Sony has engaged in a technological version of cloak-and-dagger deceit against consumers by hiding secret files on their computers. Consumers who purchased a Sony CD thought they were buying music. Instead, they received spyware that can damage a computer, subject it to viruses, and expose the consumer to possible identity crime,?Abbott said in a written statement.

?Shine?album by Trey Anastasio debuted with 15 000 sales its first week, but by week two, when the copyright protection scandal was in full swing, sales had plummeted to 7000. Sony had to pull out some 4.7 million discs with embedded XCP copyright protection technology from the market, which lowered sales by the company as well.

Finally, some of the artists may now leave Sony BMG and find other labels who do not deploy copyright protection technologies which may potentially harm music listeners.

• BusinessWeek Online: Sony's Escalating ?Spyware?Fiasco.