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. ®

Related Stories

MP3.com losses down two-thirds
MP3.com settles with Paul McCartney, NMPA
MP3.com launches email war on Congress
MP3.com bans hacker song
MP3.com seeks to placate Universal