Bertelsmann Unit To Fork Over $3M In Patent Settlement

CDnow has agreed to pay $3.3 million to settle a patent infringement suit brought by SightSound Technologies.

NEW YORK--CDnow has agreed to pay $3.3 million to settle a patent infringement suit brought by SightSound Technologies.

CDnow conceded the validity of SightSound's patents covering the commercial downloading of music on the Internet.

CDnow, a subsidiary of German media giant Bertelsmann, did not concede any wrongdoing from their prior activities in the music download business, but agreed not to further contest the Lebanon, Pa.-based SightSound's patents.

The settlement was entered Feb. 20 by Judge Donetta W. Ambrose of the U.S. District Court for the Western District of Pennsylvania.

SightSound originally sued the now-defunct N2K in 1998, when N2K, which has since been absorbed by CDNow, began selling paid downloads through an agreement with Liquid Audio.

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