NEW YORK Warner Music Group, said on Tuesday it
will receive $110 million from Bertelsmann AG, after agreeing
to settle claims related to Bertelsmann's relationship with the
original Napster in 2000/2001.
The companies said the settlement covers the resolution of
the legal claims of Warner Music's recorded music and music
Bertelsmann, the German media conglomerate, said it admits
no liability in settling
The original Napster, founded in 1999, was a pioneering
file-sharing Web service which allowed users to download
digital songs for free. The company was sued by the major music
companies including Vivendi SA.'s Universal Music Group, Sony
Music, Bertelsmann's BMG Entertainment, EMI Group and Warner
Bertelsmann made an investment in Napster, even while its
BMG unit and other music companies were involved in legal
action against the start-up company.
Napster was eventually shuttered by U.S. courts in 2002
over copyright violations.
Earlier this year, Bertelsmann settled with Universal Music
for $60 million and EMI Group for an undisclosed amount.
Napster's brand assets were bought by Roxio Inc. in 2002 to
create the current Napster Inc., a legal online music service.