Record label Sony BMG is to reimburse consumers up to $150 (£76) for damage to computers caused by CDs with hidden anti-piracy software.
The settlement was announced by the Federal Trade Commission (FTC).
The US regulator said the anti-piracy software wrongly limited the devices on which music could be played to those made by Sony or Microsoft.
It also monitored listening habits so targeted marketing messages could be sent to consumers.
