Warner Music Group has struck a licensing agreement with music-based social network Imeem. Under the deal, Imeem members will be able to stream on-demand WMG's catalog of both music and music videos at no charge.

It's a dramatic change of stance for WMG, which in May sued Imeem for copyright infringement. Under the agreement, that lawsuit has been settled.

WMG is the first major label to sign up to Imeem's new ad-supported streaming music service, which it unveiled in June. Imeem uses Snocap's music identification and filtering service to ensure music streamed on the site is limited to artists that have been registered with the system. The Snocap system then determines when registered artists have been streamed on the site, and shares a pro-rated portion of the advertising revenues to the appropriate label or artist.

Imeem claims around 16 million members, who use the service to create and share custom playlists with other members, including videos and photo slideshows set to music. The service also dynamically connects members with similar music tastes.