, Sony Make Up, Settle Suit

Online music delivery company Inc. and Sony Music Entertainment Inc. have settled a copyright infringement lawsuit and will enter into a nonexclusive deal for to use Sony's music, the companies announced in a statement Monday.

Under the agreement, will be able to use Sony music in its system, including the Beam-It and Instant Listening services. 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 in January, and a U.S. District Court judge in April found that had infringed on Sony's copyrights. No damages were ever quantified from the judge's ruling. now has settled with three major music recording labels. Only Seagram Co.'s Universal Music Group remains. saw a strong gain in its stock price after the settlement announcement. 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.

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