Bertelsmann has agreed to pay $50,000 to settle outstanding litigation over its interests in Napster 1.

The company has been fighting copyright infringement litigation against it. It has been alleged that by investing in Napster, Bertelsmann extended the peer-to-peer service's working life when that company was facing litigation from the record labels.

The German media conglomerate was aware that unauthorised music files were being exchanged through Napster, but lent the P2P firm $85 million between 2000 and 2001.

The company must still settle similar suits with Universal, EMI and others.