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LimeWire Settles With Record Companies for $105 Million

Defunct peer-to-peer file sharing service found liable for users' music piracy

May 13, 2011 10:05 AM ET
LimeWire Settles With Record Companies for $105 Million

LimeWire, the peer-to-peer file-sharing network that was shut down last year following a federal injunction that kept its users from sharing copyrighted material, has agreed to a $105 million out-of-court settlement with 13 record companies. The agreement ends a five-year legal battle in which the network was charged with large-scale copyright infringement.

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LimeWire and its founder Mark Gorton were found liable of copyright infringement in May of last year, and a trial to determine how much money should be paid out to the labels represented by the Recording Industry Association of America who were suing the company. In a court appearance last week, Gorton defended himself by claiming that he had misunderstood the law. "I was wrong," Gorton said. "I didn't think our behavior was inducing [copyright infringement]. I understand that a court has found otherwise."

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