BARCELONA, Nov 18 (Reuters) - In an attempt to make up with consumers whose PCs have been exposed to unsecure copy-protection software which acts like malware, music publisher Sony BMG said on Friday it would swap unsecure CDs for new unprotected disks as well as unprotected MP3 files.

The music publishing venture of Japanese electronics conglomerate Sony Corp. (6758.T: Quote, Profile, Research) and Germany’s Bertelsmann AG [BERT.UL] had already said last week it would temporarily suspend the manufacture of music CDs containing the controversial copy-protection technology.

The XCP copy-protection programme, developed by British software firm First4Internet and used by Sony BMG to restrict copying and sharing of music CDs, acts like virus software and hides deep inside a computer where it leaves the backdoor open for malicious hackers.

Sony BMG, after announcing a recall of some 4.7 million CDs with the software on Wednesday, said on Friday consumers could mail their CDs to the company, and they would receive a new unprotected CD in return.

Pending the processing of the exchange programme, consumers would also receive an email with details of a Website where they could download the music tracks as unprotected MP3 files.

Details of the swap programme can be found on http://cp.sonybmg.com/xcp/. Music CDs with the copy-protection software can be identified by a web address containing the letters XCP printed on the back of the box.

Last week the music publisher said it would do anything possible make amends with its customers who were outraged when the first viruses were discovered.

The XCP programme will have installed itself on a Windows-operated personal computer when consumers want to play 52 title CDs from Sony BMG. The vast majority of the CDs were sold in the United States.

The copy protection software has become a debacle for Sony BMG. Angry consumers filed a class action lawsuit, and Microsoft (MSFT.O: Quote, Profile, Research) said it regarded the copy-protection software as malware and would make a tool available to uninstall the programme. Sony BMG also said it will make a new uninstall tool available, after the first uninstall method proved unsecure.

In the latest twist to the story, software engineers found earlier on Friday that the music player which is part of the XCP software contains components from an open source project, an MP3 player called LAME, raising questions about copyright.

First4Internet, which sold the XCP software programme used by Sony BMG on its CDs, declined to comment after repeated requests since Monday.

Sony BMG has re-emphasised that copy-protection software is “an important tool to protect our intellectual property rights and those of our artists.”

Musician Midge Ure has been presented with a lifetime achievement award at the Tartan Clef Awards.

The Band Aid co-founder and former Ultravox singer received the accolade at a ceremony in Glasgow.

The main award went to Hue and Cry, while newcomer Lucie Silvas was named as best breakthrough artist.

Alabama 3 won the best songwriters prize, while there were also honours for The Corries’ Ronnie Browne and percussionist Evelyn Glennie.

The awards are organised by the Nordoff-Robbins Music Therapy charity, which helps people with disabilities.

Raising money

The ceremony is in its seventh year, with the prizes being presented this year by Lulu.

Previous winners have included The Darkness, Edwyn Collins and violinist Nicola Benedetti

Chairman Donald Macleod said: “The Tartan Clef Awards go from strength to strength each year, raising an astonishing amount of money for the charity.

“The generosity of people on the night is a true testament that music really does have a place in everyone’s heart, and that awareness of the charity and the power of music therapy continues to grow.”

TORONTO (CP) - It’s becoming a regular occurrence in CD shops across the country: an irate customer comes in complaining the CD they bought won’t play on their computer, and worse yet, they can’t transfer the tunes to their IPod.

The culprit is copy-protected or copy-controlled CDs - something many Canadian music retailers say they would like to see pulled from store shelves.

“This is just another really, really ridiculous way of telling our customers, ‘We don’t want your business,’ ” said Tim Baker of Sunrise Records, which has 31 shops in southern Ontario.

“It’s so stupid.”

The issue was underscored last week with news that the anti-piracy technology used on about 50 Sony BMG titles released in the United States and 37 in Canada secretly left spyware behind on people’s computers.

The software - developed as a way to fight music piracy - made the machines susceptible to viruses and hackers. And trying to remove the software disabled CD drives.

Needless to say, the technology irked consumers. Thousands flocked to the web to vent, using blogs and online petitions to encourage people to boycott Sony products altogether.

“There’s still plenty of work to be done if we are to achieve our goal of being treated like the music lovers we are rather than the criminals that (Sony) assumes us to be,” read one posting on www.boycottsony.us.

Sony BMG said Friday that about 120,000 of the 4.7 million faulty CDs were sold in Canada.

They are not the only company to issue copy-protected CDs in Canada.

EMI has been releasing select albums - including the latest Nickelback album, All The Right Reasons - this way for about three years. The company intends to ship out all its releases with the technology by year’s end.

The EMI discs use different software than Sony BMG, and have yet to cause any computer troubles.

Labels say they need the technology in order to stop people from sharing music with those who haven’t paid for it.

Still, retailers say such technology is punishing those who are actually willing to fork over cash for music - an ever-dwindling group as it is.

“Consumers are not liking it,” says Leslie Purchase, assistant manager at CD Plus in the Halifax Shopping Centre. “People are getting very frustrated by (copy-protected CDs).”

She’s noticed an increase in customers who put CDs down after noticing the “copy-controlled” or “copy-protected” label.

“A lot of customers won’t buy them now. They say ‘I don’t want it’,” she said.

The copy controls are possible through digital rights management technology, or DRM. It lets labels restrict the number of times a CD can be shared - meaning burned or copied.

More controversial is the ability to control which programs consumers can use to playback their music. With EMI and Sony BMG discs, for instance, the music is compatible only with Windows Media Player but not with ITunes (for PC users).