to Pay $53.4 million to UMG

U.S. District Judge, Jed Rakoff, has awarded $53.4 million in statutory damages and attorney's fees to the Universal Music Group (, in its copyright infringement suit against (

This decision ends the lawsuit that began last January when UMG and others filed a lawsuit claiming's copying of thousands of copyrighted CDs onto its file servers was an act of copyright infringement. does not intend to appeal the judgment.

It was also announced that UMG has granted a non-exclusive, North American license for the use of UMG-controlled recordings on the system. Universal was the last of the five major record labels that brought suit against to settle. now has licensing agreements with: Universal, Sony Music Group, Bertelsmann's BMG Entertainment, Warner Music Group and EMI Recorded Music, as well as with the National Music Publishers' Association.

As part of the settlement, Universal will receive warrants to buy an undisclosed number of shares in at a valuation above the current market price.

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