Bertelsmann settles Napster suit

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Bertelsmann settles Napster suit

Company agrees to pay US$110m to Warner Music.

German media giant Bertelsmann has settled a suit with Warner Music which alleged that it had profited from the illegal sale of copyrighted songs on Napster

Warner Music disclosed in a filing with the US Securities and Exchange Commission that Bertelsmann will pay a US$110m settlement but will not be required to admit any wrongdoing. 

The suit stems from Bertelsmann's dealings with Napster during the latter's original incarnation as a P2P music-swapping service.  

Bertelsmann had provided financial backing to Napster and even attempted to rescue the company from bankruptcy with an $8m bailout that was eventually blocked.  

Napster was subsequently purchased and relaunched by Roxio in 2003 as a legal subscription-based download service. 

The settlement brings to a close a trio of lawsuits filed by major record labels against Bertelsmann over its deal with Napster.

Last month, the company settled with EMI Group for an undisclosed amount, and in 2006 the company settled with Universal for US$60m.
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