, one of the biggest peer-to-peer filesharing sites, has agreed to compensate the music industry $115m (£61m) after record labels took it to court for operating a pirate music site. Kazaa also paid an undisclosed sum to compensate the film industry.
Kazaa will now become a legitimate paid-for service.
The International Federation of the Phonographic Industry (IFPI) negotiated the settlement after Sony BMG, Universal Music, Warner Music and EMI took Kazaa to court in the US and Australia.
In turning Kazaa into a legal, paid-for service the labels have achieved one of their biggest break-throughs in their war on P2P file-sharing.
Launched Scandinavians Janus Friis and Niklas Zennstrom (who also founded Skype) - in 2001, Kazaa became the world's most dominant music sharing site.
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