Update: MP3, EMI Reach Agreement

Updated from 1:20 p.m. EDT

Online music distributor MP3.com (MPPP Quote) reached a settlement with another major record label, giving the former adversary of the recording industry licensing agreements with three of the five major record labels, the companies said Friday.

The settlement will allow MP3.com to offer songs owned by EMI for its My.MP3.com service. Major record label-content was pulled from the service in May pending resolution of the lawsuits. In April, a judge found that the company violated copyright law. The MyMP3.com service offers a digital locker in cyberspace where people can store and download music for free -- but only if they own the compact disc first.

The service will not resume until MP3.com secures agreements with all five major record labels, said Michael Robertson, MP3.com's chief executive officer, in an interview.

MP3.com settled with Time Warner's (TWX Quote) Warner Music Group and Bertelsmann's BMG Entertainment in early June. It still has lawsuits pending with Seagram's (VO Quote) Universal Music Group and Sony's (SNE Quote) Sony Music Entertainment.

In its recent quarter, the company took a $150 million charge, money that was set aside to pay the costs of the legal battles. The charge still gives the company about $150 million in cash, Robertson said.

A settlement with Sony is not imminent, according to a source close to that company. A representative from Universal could not be immediately reached for comment.

San Diego-based MP3.com closed Friday off 7/16, or 8%, at 9 7/8. Its 52-week high is 64 5/8.