WASHINGTON (AP) — The company that distributed software called “Kazaa,” which made it simple for millions of computer users to download music and movies over the Internet, has settled global lawsuits brought by the entertainment industry, the industry said Thursday.

Sharman Networks Ltd., which produced and distributed the popular Kazaa software agreed to pay an unspecified “substantial sum” in penalties. It also promised to “use all reasonable means” to discourage online piracy, including building into its software “robust and secure” ways to frustrate computer users who try to find and download copyrighted music and movies, court papers said.

The settlement concludes legal battles against Sharman Networks around the world.

“Services based on theft are going legit or going under, and a legal marketplace is showing real promise,” said Mitch Bainwol, head of the Washington-based Recording Industry Association of America, the trade group for the largest labels.

The head of the Motion Picture Association of America, Dan Glickman, called the settlement an important victory in a historic legal case.

Sharman Networks indicated it will negotiate licenses with entertainment companies to distribute music and movies lawfully over its Kazaa service, similar to Apple Inc.’s iTunes service. The settlement does not prohibit Sharman Networks from legally distributing copyrighted files.

The Supreme Court ruled last year the entertainment industry can file piracy lawsuits against technology companies caught encouraging customers to steal music and movies over the Internet. Earlier this month, in a related federal lawsuit, a U.S. judge said evidence was “overwhelming” against StreamCast Inc., which produced similar software for downloading music and movies called “Morpheus.”

Source: CNN Technology News