Software Firm Settles MP3 Lawsuit

PlayMedia Systems Inc. Wednesday announced it had settled its copyright infringement lawsuit against Nullsoft Inc. and

PlayMedia said the settlement includes a license that allows Nullsoft to use the technology that was the focus of the lawsuit. PlayMedia is also entering into a business relationship with that will allow to avoid paying any penalties.

The announcement comes one day after America Online Inc. purchased Nullsoft and online broadcaster Spinner Networks Inc. for a combined $400 million in stock.

PlayMedia sued Nullsoft in mid-March, alleging that the technology in Nullsoft’s WinAmp MP3 player was taken from its AMP Audio MPEG Player. PlayMedia originally sought more than $20 million in damages as well as an permanent injunction against Nullsoft.

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