The settlement reached would allow Audiogalaxy to operate a "filter-in" system, which requires that for any music available, the songwriter, music publisher, and/or recording company must first consent to the use and sharing of the work. The other key provision of the agreement is for Audiogalaxy to pay the music publishers and recording industry a substantial sum based on Audiogalaxy's assets and interest in resolving this case quickly.

"We are pleased to settle this case quickly. This is a victory for everyone who cares about protecting the value of music," said Hilary Rosen, Chairman and CEO of the RIAA. "This should serve as a wake-up call to the other networks that facilitate unauthorized copying. The responsibility for implementing systems that allow for the authorized use of copyrighted works rests squarely on the shoulders of the peer-to-peer network."

"The message is clear '“ there is no place on the Internet for services that exploit creators' work without fair compensation," added Edward P. Murphy, President and CEO, NMPA. "Such services hurt creators and hurt the legitimate Internet businesses that wish to comply with the law and compensate the creators. The swift resolution of this matter is thus a double victory that creators and legitimate Internet businesses should join in hailing." (more)

Audiogalaxy.com, based in Austin, Texas, was one of the more heavily trafficked file-sharing websites.