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CDNow, SightSound settle download patent suit

Bertelsmann division CDNow has settled a long-running patent infringement suit with Net company SightSound Technologies, agreeing to pay $3.3 million to the smaller company. SightSound contended that it owned patent rights in the process of selling digital music downloads over the Internet.

SightSound said it viewed the settlement--which followed several court rulings in its favor last year--as a victory and that it would likely now approach other digital song and movie stores for license revenues. However, the settlement did not necessarily mean an end to patent disputes, since CDNow did not admit that it infringed on the patents as part of the agreement.