Sony BMG will pay $4.25 million a year to a consortium of 39 states after acknowledging the company loaded antipiracy software on music CDs without notifying buyers.

The settlement agreement was announced Thursday by the state of Massachusetts, the lead plaintiff in the case. In addition to the $4.25 million, Sony BMG will also pay up to $175 apiece to consumers whose computers were damaged by the software.

"We're pleased to reach these agreements," Sony BMG said in a statement.

The announcement comes just after the music label announced similar deals with Texas and California. With the settlements, Sony BMG, jointly operated by Sony and Bertelsmann Music Group, has taken a major step in resolving a controversy that caused a public uproar last year.

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