Limewire and its founder Mark Gorton have agreed to pay record companies $105m (£66m), ending a US trial over copyright-infringement damages owed by the once popular but now defunct file-sharing service.
The settlement with 13 record companies, including labels owned by Sony, Vivendi, Warner Music and Citigroup's EMI, followed mediation and ends nearly five years of litigation. US courts closed LimeWire last October, but left open the question of damages. A jury trial had begun last week, with the music giants seeking $1.4bn in damages from LimeWire and Mr Gorton, a former trader at Credit Suisse.
Founded in 2000, LimeWire has been a problem for record companies because millions of fans used it as an easy means to find and download music for free. Its owners said the service once had more than 50 million monthly users.