The settlements will allow music from both record labels to stay
on the MP3.com web site.
BMG and Warner were among a group of five record labels that
brought copyright infringement proceedings against MP3.com in
January this year. The complaint was that, by making digital copies
of as many as 40,000 CDs without permission and allowing users to
access these recordings through the My.MP3.com site, the company
infringed copyright in the recordings.
In April, a court’s summary judgement declared that MP3 was in
violation of copyright.
The licensing agreements will allow consumers to access copies
of Warner or BMG CDs they already own with MP3.com. Warner said its
artists will receive a portion of the settlement money and
licensing fees “in accordance with the terms of their agreements”.
It is thought that MP3.com will pay between US$75 and $100 million
(£50 - £66 million).
The settlement helped boost shares in MP3.com by 23%.
A spokesman for Warner said the settlement “clearly affirms the
right of copyright owners to be compensated for the use of their
works on the internet.”
MP3 has yet to settle with three other companies involved in the
original action against it.
