Online music delivery company MP3.com and Sony Music Entertainment have settled a copyright infringement lawsuit and will enter into a non-exclusive deal for MP3.com to use Sony's music, the companies announced in a statement late yesterday.

Under the agreement, MP3.com will be able to use Sony music in its My.MP3.com system, including the Beam-It and Instant Listening services.

My.MP3.com allows users to listen to their own music from the Music Manager, a "personal digital locker" on the Internet. Before they listen to selections on the Music Manager, users have to verify they own the CDs.

As part of the settlement between the two companies, MP3.com agreed to pay Sony £13 million in damages for past violations of copyright.

In the future MP3.com will pay 'royalty' payments to Sony every time a visitor downloads a track by one of the label’s artists.