MP3.com, Inc. (Nasdaq: MPPP) rose 5 1/4 to 16 7/8 Wednesday after the Wall Street Journal said the company is close to settling a copyright infringement suit brought by major record labels.
Time Warner Inc.’s Warner Music Group is close to agreeing to let MP3 license its music after paying damages, the Journal said. An agreement could be announced Friday, according to the paper.
The Recording Industry Association of America (RIAA) sued MP3.com in January, alleging that the company’s service — which enables free access to recordings — infringes on record companies’ copyrights. In April, a judge sided with the companies, putting pressure on MP3.com to settle.