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MP3.com squares Universal with $53.4m payout

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MP3.com is to cough up $53.4 million to settle its copyright infringement case with Universal Music Group.

Record label giant Universal was upset because it claimed MP3.com had infringed 6,700 of its copyrighted CDs.

Today's settlement, though fierce, is still better than feared - the San-Diego-based company faced up to $167.5 million in damages. And at one point Universal was after $450 million from the online music-sharing service.

The trial to decide the number of infringements was due to start in New York this afternoon.

In September, Judge Jed Rakoff ordered MP3.com to pay $25,000 for every copyright infringement on CDs sold by Universal.

MP3.com has already settled out of court with music industry majors EMI, Sony, BMG and Warner. ®

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