Napster and its Goliath, the Recording Industry Association of America, may settle out of court rather than going all the way.
The beleaguered peer-to-peer music-trading site and the RIAA have met with a court-appointed mediator and have another meeting scheduled, according to a report in the 26 Feb issue of Newsweek magazine.
In an attempt to reach an out-of-court settlement, Judge Marilyn H Patel appointed former federal judge Eugene Lynch as mediator for the two sides, Newsweek said.
The Ninth Circuit of the US Court of Appeals ruled on 12 Feb that Napster infringes on record company copyrights through the operation of its music file-trading service.
But the ruling also directed the Napster service be allowed to continue operations until some modifications are made to the original injunction.
The lawsuit against Napster was originally filed in December 1999 by the RIAA on behalf of the five major record labels.