From Good Morning, Silicon Valley…

WASHINGTON (AP) – Stung by continuing criticism, the world’s second-largest music label, Sony BMG Music Entertainment, promised Friday to temporarily suspend making music CDs with antipiracy technology that can leave computers vulnerable to hackers.

Sony defended its right to prevent customers from illegally copying music but said it will halt manufacturing CDs with the “XCP” technology as a precautionary measure. “We also intend to re-examine all aspects of our content protection initiative to be sure that it continues to meet our goals of security and ease of consumer use,” the company said in a statement.

The antipiracy technology, which works only on Windows computers, prevents customers from making more than a few copies of the CD and prevents them from loading the CD’s songs onto Apple Computer’s popular iPod portable music players. Some other music players, which recognize Microsoft’s proprietary music format, would work.

Sony’s announcement came one day after leading security companies disclosed that hackers were distributing malicious programs over the Internet that exploited the antipiracy technology’s ability to avoid detection. Hackers discovered they can effectively render their programs invisible by using names for computer files similar to ones cloaked by the Sony technology.

More… It turns out that Sony also has plans for Mac users too. According to this post, Darren Dittrich followed up on the discovery that Sony was playing a dirty trick on its customers, secretly installing a malware-style “root kit” on their computers via audio CDs:

I recently purchased Imogen Heap’s new CD (Speak for Yourself), an RCA Victor release, but with distribution credited to Sony/BMG. Reading recent reports of a Sony rootkit, I decided to poke around. In addition to the standard volume for AIFF files, there’s a smaller extra partition for “enhanced” content. I was surprised to find a “Start.app” Mac application in addition to the expected Windows-related files. Running this app brings up a long legal agreement, clicking Continue prompts you for your username/password (uh-oh!), and then promptly exits. Digging around a bit, I find that Start.app actually installs 2 files: PhoenixNub1.kext and PhoenixNub12.kext.

Personally, I’m not a big fan of anyone installing kernel extensions on my Mac. In Sony’s defense, upon closer reading of the EULA, they essentially tell you that they will be installing software. Also, this is apparently not the same technology used in the recent Windows rootkits (made by XCP), but rather a DRM codebase developed by SunnComm, who promotes their Mac-aware DRM technology on their site.

So, as I was saying the other day, the best thing is just to shun anything emanating from Sony.