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Tech Industry flies on BMI pact

    Shares of legally troubled online music company (Nasdaq: MPPP) revved up 36 percent Monday after announcing a licensing agreement with BMI.

    The company's shares have been suffering since a federal judge ruled April 28 that violated copyright law by allowing its users to store music and then access it via any computer connected to the Internet. The ruling stemmed from a lawsuit filed in January by the world's largest record labels, which said's database of more than 80,000 albums infringed their copyrights. is trying to negotiate with the record companies to settle their case out of court.

    Shares were up 3 3/4 to 14 1/8 Monday. The company topped first quarter expectations with a smaller-than-expected loss.

    The licensing agreement with the American performing rights organization, Broadcast Music Incorporated, or BMI will allow to use the BMI repertoire of more than 4.5 million songs within the site.

    The company's competitors include CDNow (Nasdaq: CDNW), (Nasdaq: EMUS) and Universal Music Group according to Hoover's Online.