Sony BMG's use of controversial antipiracy software in 2005 continues to have repercussions for the label giant, its artists, and its customers.

Trey Anastasio's Shine was one of the rootkit CDs.

The company said yesterday that it will pay $1.5 million and pony up for additional customer refunds to settle lawsuits brought against it last year by California and Texas. The lawsuits claimed that the antipiracy technology, loaded onto the label's CDs and installed surreptitiously onto users' computers when the CDs were loaded into the CD drive, caused serious damage to those computers.

The settlements cover lawsuits over CDs loaded with one of two types of copy-protection software--MediaMax or XCP. Lawsuits were also filed in Italy and New York.

Under the settlements, California and Texas will each receive $750,000 in civil penalties and costs. In addition, Sony BMG agreed to reimburse consumers whose computers were damaged while trying to uninstall the XCP software. Customers in both states can file a claim with Sony BMG to receive refunds of up to $175.

State officials estimate some 450,000 compact discs carrying the XCP software were sold in California, while about 130,000 were sold in Texas. The CDs included albums from Neil Diamond, Trey Anastasio, Amerie, Celine Dion, and Ricky Martin.

Customers have 180 days to file claims, which must include a description of how their computer was harmed and documentation of repair expenses.

As part of the settlements, Sony BMG also agreed not to distribute any compact discs loaded with any copy-protection software that hinders computer users from easily locating it or removing it from their computers.

"Companies that want to load their CDs with software that limits the ability to copy music should fully inform consumers about it, not hide it, and make sure it doesn't inflict security vulnerabilities on computers," California Attorney General Bill Lockyer said in a statement. "To its credit, Sony BMG learned this lesson and has stopped the practices that led to this lawsuit."