Bertelsmann has settled with yet another of the major labels over its backing of P2P pirate Napster back in 2000 and 2001. It has paid Warner Music $110 million, to go with the $60 million it paid Universal last June and the unspecified amount, thought to be around $50 million, paid to EMI in March this year.
That would total legal settlement fees of $220 million, while Bertelsmann only ever invested $85 million in Napster and never got anything back for its investment, making its adventure a $300 million loss.
The settlement resolves all legal claims of Warner Brothers Music Group and related businesses and was made without Bertelsmann admitting any liability.
We have said in the past that we feel that no court would ever convict on the basis that investment in a company was an inducement to breach copyright, but Bertelsmann has been treated as something of a leper by the dominant music groups since the suits were filed and perhaps it felt it had to buy its way back into the good books of its peers. The suits were brought during 2003 after Napster was closed through legal actions which showed it encouraged people to breach copyright.