iMesh to settle music industry suit for $4.1 million

An Israeli technology company that makes popular software for downloading music over the Internet agreed Tuesday to pay $4.1 million to the recording industry for copyright infringement, a significant victory for music labels.

Bridgemar Services Ltd., formerly known as iMesh.com Ltd., agreed under a court-approved settlement to change its Internet service later this year to prevent consumers from illegally distributing music or downloading songs. The iMesh software has been downloaded more than 76 million times.

The settlement, reached in U.S. District Court in New York, represents one of the rare efforts by the recording industry to successfully sue technology companies producing software that allows Internet users to exchange pirated songs and other files, rather than suing Internet users individually.

"The constructive approach of iMesh stands in stark contrast to other file-sharing businesses who thumb their noses at Congress, continue to offload liability onto users and dupe America's kids into breaking the law," RIAA chief Mitch Bainwol said.