Out of court settlement with 13 record companies
File-sharing software company Limewire has settled a five-year-old legal battle with 13 record labels in an out of court settlement for $105m.
The developer of the Limewire system had been accused for "massive scale infringement" by helping users share digital music files illegally.
The settlement comes days after the start of a trail into the allegations.
However, the figure is less than expected. The the Recording Industry Association of America (RIAA) had claimed in the past that it was owed $75 trillion dollars.
In October 2010, LimeWire was ordered to close, when the court found that the company and its founder, Mark Gorton, were liable for online music piracy.
After the settlement, lawyers of Gorton said that they were "pleased that this case has concluded".
Even RIAA concurred.
RIAA chief executive Mitch Bainwol said, "We are pleased to have reached a large monetary settlement following the court’s finding that both LimeWire and its founder Mark Gorton personally liable for copyright infringement."
"As the court heard during the last two weeks, LimeWire wreaked enormous damage on the music community, helping contribute to thousands of lost jobs and fewer opportunities for aspiring artists."