Online music delivery company MP3.com Inc. and Sony Music Entertainment Inc. have settled a copyright infringement lawsuit and will enter into a nonexclusive deal for MP3.com to use Sony's music, the companies announced in a statement Monday.
Under the agreement, MP3.com will be able to use Sony music in its My.MP3.com system, including the Beam-It and Instant Listening services. My.MP3.com allows users to listen to their own music from the Music Manager, a "personal digital locker" on the Internet.
Before they listen to selections on the Music Manager, users have to verify they own the CDs. The companies did not disclose the financial terms of the settlement.
Sony originally filed suit against MP3.com in January, and a U.S. District Court judge in April found that MP3.com had infringed on Sony's copyrights. No damages were ever quantified from the judge's ruling. MP3.com now has settled with three major music recording labels. Only Seagram Co.'s Universal Music Group remains.
MP3.com saw a strong gain in its stock price after the settlement announcement.
MP3.com saw its stock rise $US2.25 a share to $US10 a share in mid-afternoon trading Tuesday. The stock's trade volume had exceeded 2.5 million shares.