TVT Records and Napster have reached an out-of-court settlement in which master recordings and compositions will be allowed on the file-swapping service. TVT execs said they were prompted to drop their lawsuit as a result of the deal made between Bertelsmann and Napster to move to a subscription service. "The future Napster offers the opportunity to reach music fans in unprecedented and as-yet-unimagined ways," said TVT prexy Steve Gottlieb. "It is high time that the industry embraces a service that the public has so emphatically said they want." TVT's roster includes Guided by Voices, XTC and 2gether.
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