What does the settlement do about the EULA problems?
It gets purchasers completely out from under the EULA, as well as the DRM. Everyone who bought any of the CDs, whether XCP, Mediamax 3 or Mediamax 5, can get MP3 versions of their music with no EULA whatsoever and of course no DRM. In addition, we also have required Sony-BMG to waive major portions of their EULA for those people who retain the disks, including allowing for fair use and eliminating (in most cases) the ridiculous provisions limiting damages forcing you to New York to sue and eliminating your rights if you go into bankruptcy. For future CDs with EULAs — none are being produced now — Sony agrees to allow a “first look” at the EULA by an independent third party, but also has agreed to ongoing discussions with EFF about their future use of EULAs as well as DRM.
