NEW YORK (CNNfn) - MP3.com Inc. reached an agreement with EMI Group PLC that will allow the online music company to use songs owned by the British record label in the My.MP3 Web-based database, sources said Thursday.|
The company is expected to announce Friday that MP3.com can use EMI's music as part of the MyMP3.com service, sources confirmed to CNNfn.com.
The settlement means just two of the five music giants that sued MP3.com for copyright infringement, Sony and Universal, have yet to settle. But a source said Thursday that Universal had begun settlement negotiations with the digital music provider.
An EMI spokeswoman declined comment on the reports Thursday.
An MP3.com spokesman could not be reached for comment.
The five major recording labels, Warner Music Group, Bertelsmann AG's BMG, Sony Music Entertainment, Seagram Co.'s Universal Music Group, and EMI, sued San Diego-based MP3.com late last year alleging that the company illegally copied songs without permission from the companies via its My.MP3.com Internet service.
The service works by allowing visitors to listen on a computer anywhere to music from popular recording artists, after proving to MP3.com that they owned the CD.
Last month, MP3.com settled its dispute with two of the companies, Warner and BMG. Although terms were not disclosed, such settlements will likely clear the path for recording companies and MP3.com to pursue online music distribution like never before, industry experts have said.
The company's deal with Warner and BMG licenses MP3.com to use Warner and BMG-controlled recordings from the likes of Whitney Houston and Eric Clapton, on its My.MP3.com service.
Shares of MP3.com (MPPP: Research, Estimates) closed down 1/16 to 10-5/16 Thursday.