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Music Publishing Group Drops Appeal of YouTube Copyright Infringement Case

Google Inc. (GOOG) settled copyright- infringement claims brought by music publishers over the unauthorized use of music videos on the company’s YouTube website.

The settlement allows music publishers to form licensing agreements with YouTube and receive royalties, the National Music Publishers Association said today in a statement announcing it was dropping its appeal of a lower-court ruling that rejected the group’s claims.

“We are pleased to have resolved NMPA’s litigation claims and to work with YouTube in providing a new licensing opportunity for songwriters and publishers,” David Israelite, the chief executive of the Washington-based trade group, said in the statement.

The NMPA was a plaintiff in a companion suit to one filed in 2007 by Viacom Inc. (VIA/B), which charged that YouTube violated copyrights by allowing users to upload videos of music, TV shows and sports events without permission. A district court ruled last year that YouTube wasn’t liable for infringement because it removed unauthorized videos when informed about them.

Music publishers and songwriters have seen income decline because many music fans download songs for free from the Internet and sales of compact discs have plummeted.

“Today’s deal offers more choice for rights holders in how they manage use of their songs,” YouTube said in a blog posting on its site today. “While this deal is only with publishers, it will also benefit recording artists and record labels.”

Appeal in Effect

The appeal of the district court ruling by New York-based Viacom, which owns MTV Networks and Comedy Central, remains in effect. Oral arguments in the Viacom appeal are expected to take place before the end of this year, according to court papers. Viacom was seeking $1 billion in damages from YouTube.

The NMPA, along with YouTube and music publishers including the Rodgers & Hammerstein Organization, agreed to “voluntary dismissal” of the appeal, according to a filing today in appeals court in Manhattan.

Google, based in Mountain View, California, fell $5.85, or 1.1 percent, to $533.15 at 4:30 p.m. New York time in Nasdaq Stock Market composite trading.

The music publishing appeal is The Football Association Premier League Ltd. v. YouTube Inc., 10-3342, 2nd U.S. Circuit Court of Appeals (New York). The Viacom appeal is Viacom v. YouTube, 10-03270, 2nd U.S. Circuit Court of Appeals (New York).

To contact the reporter on this story: Don Jeffrey in New York at djeffrey1@bloomberg.net

To contact the editor responsible for this story: Andrew Dunn at adunn8@bloomberg.net

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