LimeWire settles out of court with major record labels
Intellectual Property
File-sharing software company LimeWire, which shut down last year after being barred from allowing people to share copyright-protected files online, reached a $105 million out-of-court settlement with the major record labels Thursday, the labels said.
In a statement, Recording Industry Association of America Chairman Mitch Bainwol said his group, which represents the labels, is pleased with the settlement.
“The resolution of this case is another milestone in the continuing evolution of online music to a legitimate marketplace that appropriately rewards creators,” he later added.
LimeWire, which had enabled people to share songs and other files over the Internet, had been fighting the RIAA for several years.
The RIAA argued LimeWire’s software encouraged illegal sharing of copyrighted music. Last May LimeWire was found liable of copyright infringement, with a trial to follow early this year. That trial started last week.
In October, LimeWire received a federal injunction forcing it to disable key functions of its software. At that time, the company said it would continue developing a new service that would include a desktop player, mobile apps and a catalog of music from which people could legally stream and download songs.
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