PlayMedia Systems Inc. Wednesday announced it had settled its copyright infringement lawsuit against Nullsoft Inc. and MP3.com.
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 MP3.com that will allow MP3.com 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.