TVT Records has withdrawn its copyright infringement claims against music file-sharing Web company Napster. The New York-based independent label decided to settle and work with Napster because it supp

TVT Records has withdrawn its copyright infringement claims against music file-sharing Web company Napster. The New York-based independent label decided to settle and work with Napster because it supports the new membership-based business model the company is developing through its strategic alliance with Bertelsmann AG.

Under terms of the settlement, TVT will allow the master recordings and musical compositions it owns or controls to be used for file sharing on the new Napster service. In addition, TVT founder/president Steve Gottlieb has agreed to act as an advisor to Napster, and the label will promote further industry acceptance of the model.

"I am afraid that copyright owner's resistance to finding workable solutions with Internet music providers may result in consumers, artists, and the industry itself ultimately being harmed," Gottlieb said in a statement. "The future Napster offers the opportunity to reach music fans in unprecedented and as yet unimagined ways. It is high time that the industry embraces a service that the public has so emphatically said they want."

TVT's embrace of Napster's membership-based plan follows that of Hamburg, Germany-based edel Music AG, which earlier this month agreed to make its entire catalog available for the company's new service.