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MP3.COM INKS FIRST LICENSING DEAL
Beleaguered Music Site Goes Street Legal With BMI Licensing Deal

MP3.com, the Internet music company that was found by a federal judge to be violating copyrights, said it reached a licensing agreement with one of the two major U.S. organizations that collect music royalty payments.

The licensing agreement with BMI lets MP3.com play BMI's 4.5 million compositions on its Web site.

BMI represents more than 140,000 U.S. songwriters and composers and more than 60,000 U.S. publishers.

The agreement comes a week after a judge ruled that San Diego-based MP3.com, which distributes music for free over the Internet, is infringing record company copyrights.

It also comes as MP3.com negotiates with the record companies to settle their case out of court.

The news helped give the company a substantial NASDAQ spike; shares were up 3.31 to 13.69 at presstime.

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