Internet music-swapping service Napster has proposed a $1 billion settlement with major and independent record labels to end the lawsuit threatening to close the firm.
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Under the proposed settlement, $150 million would be paid annually for the first five years to the major record labels - Sony, Warner, BMG, EMI and Universal - with an additional $50 million allotted annually for independent labels.
Napster chief executive Mr Hank Barry described the urgency of reaching a deal with the record companies suing Napster for copyright infringement.
"We all ought to sit down and settle this case as fast as we can," Mr Barry said.
"We are saying this is something consumers really want. Let us do something to keep it going."
The offer was announced a week after a US federal appeals court indicated the end is near for Napster's free service, saying the music industry almost certainly will win its suit.
AP