Viacom had filed a $1bn lawsuit against Google’s YouTube in 2007.
Google has settled a long-running copyright infringement lawsuit with Viacom over Google’s YouTube video site, ending a seven-year legal fight.
The out-of-court settlement concludes a dispute that dates back to 2007, when Viacom charged Google’s video-sharing unit of using pirated video snippets to catch the attention of viewers.
Both the companies said in a joint statement: "This settlement reflects the growing collaborative dialogue between our two companies on important opportunities, and we look forward to working more closely together."
With the terms of current settlement remaining undisclosed, Viacom had earlier sought $1bn in damage claims from the search engine.
YouTube has rowed with content developers concerning copyrighted videos being uploaded and viewed at no cost since its launch.
The video sharing site has, however, resolved several such disputes through its shared revenue model, in which ads are displayed next to copyrighted content, while offering a share to both Google and the copyright holder.
Last Month, Google was ordered to remove a controversial anti-Islamic video from YouTube, which ignited protests across Muslim world in 2012.
YouTube has also modified its comment management system in the wake of criticism from users and co-founder.