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March 26, 2007 4:07 PM PDT

Bertelsmann and EMI settle Napster-related court case

by Greg Sandoval
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Music label EMI Group on Monday announced that it has settled a lawsuit filed four years ago against German media company Bertelsmann AG in connection with the original Napster music service.

A group of record companies, including EMI and Universal Music Group along with a group of music publishers sued Bertelsmann for allegedly helping to organize Napster's illegal file-sharing activities.

Bertelsmann denied the allegations, saying it had only invested in Napster before the music service was forced to close its doors in 2001 as a result of a massive court fight. A new and law abiding music service has since operated under the Napster name.

Napster was once a highly popular music service that enabled users to swap each other's music files without compensating record companies.

Last year, Bertelsmann agreed to settle with Universal for $60 million according to a statement on Bertelsmann's site.

In Monday's settlement and the one announced with Universal last September, Bertelsmann admitted no liability.

Greg Sandoval covers media and digital entertainment for CNET News. He is a former reporter for The Washington Post and the Los Angeles Times. E-mail Greg, or follow him on Twitter at http://twitter.com/sandoCNET.
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