Mark Gorton, creator of former filesharing website LimeWire, has agreed to pay 13 record companies $105 million (£64million) in an out-of-court settlement.
Limewire, a popular filesharing program, was forced to shut down late last year. The company was found liable of copyright infringement in May, and received a federal injunction in October forcing it to disable key functions of its software. LimeWire didn’t recover from this blow, and shut down entirely in December.
A trial to decide on the amount of damages owed by Limewire to thirteen record labels, including Warner and Sony Music, all of which are represented by the Recording Industry Association of America (RIAA), started earlier this month, until yesterday’s out-of-court settlement cut it short.
Mitch Bainwol, chairman of the RIAA, referred to the “resolution of the case [as] another milestone in the continuing evolution of online music to a legitimate marketplace that appropriately rewards creators.”