Warner Music Group and AnywhereCD have dismissed their respective lawsuits against each other and agreed to an early end to their relationship.

Under the agreement, WMG will allow AnywhereCD to continue sell its music via the service -- which lets customers download DRM-free MP3 files of any physical CD they purchase from the site -- until Sept. 30.

When AnywhereCD first launched in April, it offered customers the option to pay less for just the MP3 files, and skip the CD altogether. WMG balked at this move and demanded AnywhereCD remove its content from the service. AnywhereCD only sells full albums, not individual singles. AnywhereCD responded by suing WMG for breach of contract and business defamation, among other things.

AnywhereCD was founded by Michael Robertson, who also founded the original MP3.com and continues to operate the Oboe digital music locker service.

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