MP3.com 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 (www.umusic.com), in its copyright infringement suit against MP3.com ( www.mp3.com).

This decision ends the lawsuit that began last January when UMG and others filed a lawsuit claiming MP3.com's copying of thousands of copyrighted CDs onto its file servers was an act of copyright infringement. MP3.com does not intend to appeal the judgment.

It was also announced that UMG has granted MP3.com a non-exclusive, North American license for the use of UMG-controlled recordings on the My.MP3.com system. Universal was the last of the five major record labels that brought suit against MP3.com to settle. MP3.com 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 MP3.com at a valuation above the current market price.