BearShare assets bought by iMesh.

Bearshare has become the latest peer-to-peer network to bow to the music industry in the wake of the Supreme Court's ruling against Grokster. The file swapping service, a unit of Free Peers Inc., and its principal owners Vincent Falco and Louis Tatta on May 4 agreed to a $30 million settlement to settle digital piracy charges levied against the company.

In connection with the settlement, filed in U.S. District Court in New York, Free Peers is selling the Bearshare name and selected assets to MusicLab, a subsidiary of reformed P2P operator iMesh, for an undisclosed sum.

"iMesh is committed to transitioning the compelling experience of P2P to an authorized marketplace. Our strategy includes expansion through acquisition and the purchase of assets," said iMesh Executive Chairman Robert Summer in a statement.

Bearshare emerged on the short list of the Recording Industry Assn. of America's P2P targets following the industry's similar $50 million settlement with Grokster last November.

P2P services WinMX and i2Hub, other RIAA targets, have since gone out of business as well.

The RIAA still has either pending litigation or cease and desist orders outstanding against WarezP2P, Streamcast/Morpheus, Kazaa, Limewire, eDonkey and Soulseek.

"The [Supreme] Court's decision helped pave the way for this transformation of the digital music marketplace," says Steven Marks, General Counsel and Executive Vice President, RIAA. "This is another important step in that evolution."