Originally posted here by r8devil
they just realised that they are not gonna make any $ from this so they try to sue a student who is showing the flaws of the protection.
They already conned BMG into using their method and BMG probably paid for it. they were thinking that more record companies will pay them and then someone showed the flaws on the system and they are pissed.
Thier stock has dropped by 20%, according to slashdot. CNET said this:
The damage to SunnComm's reputation, while not necessarily permanent, was quickly seen in a drop in its markt value, totaling close to $10 million over several days,
So yes, they have a legal right to sue. One line from this guy was all it took to make this happen. Granted, they made a shitty product, but they can still sue when someone does them damage like that. Whether or not they win depends on whether or not it's a product flaw or this guy's fault. And that's for a judge to decide. But the fact is that they lost $10 million in 5 days because of him.