First let's take a look at the claim that Sony was merely trying to add a layer of protection to their IP by using XCP and weren't aware of the potential security flaws.
For starters, if they just wanted to encrypt their data or have a program running in the background that prevented the user from opening a certain application, this is all possible with XCP. In fact, the only reason to use XCP is to bypass the built-in security measures that your computer should have immutably enabled and functioning. That is, they wanted their DRM software to be in a position of ultimate control over your computer. Ordinary security features prevented this, so they install XCP to hijack your computer, to bypass security - and not only that, but they provide that control to any program that prefixes its name with $sys$. That is, XCP is a security flaw by its very nature and it was licensed with just this functionality in mind. There is no other reason to use it, but to circumvent security measures.
Now I'd like to address the seemingly prevalent belief that people are up in arms against this software primarily because it may allow a virus or other undesirable program unfettered access to you system.
People are used to security flaws within windows. They happen all the time and MS releases patches. They are not well loved for it, but for the most part, people continue to use windows and tolerate the seemingly ubiquitous lack of security. Why then, would they make an exception for Sony's case? I believe the answer lies not in the DRM itself, but in Sony's arrogant and anti-consumer attitude that they're right to control their "property" usurps the consumer's right to control the functionality of his or her computer.
One statement that whoever-it-was in this interview made in defense of Sony was that DVD's have been DRMed forever. You can't rip them to disk, you can't copy them, you can't even play them in non-licensed players. CDs, on the other hand, (as manufactured by Sony) are designed not to prevent you from playing them, or copying them, or presumably using them as you see fit, but rather to prevent you from copying in excess and giving too much of Sony's IP away without their consent. The problem with this logic is that for one thing, nobody is giving the movie companies kudos for locking down their DVDs. That I can't legally rip my copy of Spaceballs to my iPod video isn't a fact that gains MGM much love. And secondly, CDs were never designed to be crippled in the first place. When I buy a CD, I expect it to behave like a CD. Sony wants to change the way CDs behave - and the only notice they give you about it is an enigmatic little "CP" icon and the words "content protected". Content protection sounds good to me - does that mean that my CDs will scratch less, or that if I lose the CD, the content will continue to be made available to me, because I paid for the content? I thought not.
Lastly, I'd like to take issue with the notion that the Sony fiasco has set DRM back for years. I don't think it has. In the official release, Sony has only recalled the discs with XCP and has all but promised that future CDs will be released with some form of DRM. As long as the methodology doesn't usurp the functionality of the computer or provide in any egregious way a security risk, Sony will continue to distribute crippled CDs. That is, after all, the reason for the fiasco in the first place. It wasn't the DRM that got them in hot water, it was the way they went about achieving it. There are still many CDs out there with the "CP" logo that Sony hasn't recalled. Santana's newest CD comes to mind.
This is the way that the future is going to go. DRM has more than a foot in the door, it nearly has a whole leg. The Sony fiasco must serve as a wake-up-call for us, or we risk losing the public domain forever. (DRM + DMCA = unlimited copyright terms) We mu
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