The British Phonographic Industry (BPI) has reached an out-of-court agreement with online CD retailer Play.com, its second such settlement with a Web-based music-seller in as many months.

The British Phonographic Industry (BPI) has reached an out-of-court agreement with online CD retailer Play.com, its second such settlement with a Web-based music-seller in as many months.

The BPI initiated legal proceedings against Play.com in December. Test purchases made by the trade body's Internet investigation unit indicated the e-tailer was selling discounted CDs in the form of illegal parallel imports.

As part of the settlement, Play.com, which is based in the Channel Islands, has agreed to only sell legitimate European-sourced CDs.

Earlier this year, the BPI resolved a separate legal dispute with Internet retailer CD Wow, avoiding a hearing at London's High Court.