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Napster, NMPA Reach Agreement

Napster has reached a preliminary agreement to pay $26 million to the National Music Publishers Association to settle its copyright-infringement lawsuit for past, unauthorized uses of music. Napster will also pay a $10 million advance against future licensing royalties. The NMPA will license its songs for distribution once Napster begins its subscription service later this year.

The Harry Fox Agency, Inc. the licensing subsidiary of NMPA, will license rights, collect and distribute royalties, and monitor compliance under the Agreement, on behalf of the copyright owners of musical compositions.