The new arrangement is expected to involve MP3.com paying a fee to EMI every time a user registers or accesses EMI music, including works by the Beatles, the Rolling Stones and Frank Sinatra. MP3.com may also be ordered to pay damages of up to $20 million following a court hearing to be held in late August.
This news comes in the wake of the preliminary injunction that will close down music swapping web site Napster at midnight tonight, or 8am Saturday, BST.
The immediate effect of that decision has been strongly felt by Gnutella and other web sites offering similar services. Gnutella reported a massive influx of traffic which forced it to temporarily take its servers off-line yesterday.