NAPSTER $$$ FOR WARNER

Warner Music Group yesterday scored the largest settlement yet in the music industry’s copyright-infringement lawsuit against file-sharing service Napster.

The major label – home to such artists as Wilco, Bjork and Linkin Park – received $110 million from Bertelsmann to settle “contingent claims” related to the German media group’s 2000-2001 investment in Napster.

Napster’s arrival on the scene in the late 90s hastened both the music industry’s CD sales decline and its conversion to digital distribution. Though Napster is now a legal online music service, it wasn’t at the time of Bertelsmann’s investment.

While admitting no liability, Bertelsmann has paid out at least $270 million to settle claims related to its Napster investment, which came during the reign of Thomas Middelhoff as CEO.

EMI last month settled its outstanding claims against Napster, and though both sides declined to disclose the amount of the settlement sources familiar with that deal said EMI received about $100 million.

Universal Music Group in September was the first label to settle with Napster. The largest major label, which also sealed a deal that month to buy BMG Music Publishing from Bertelsmann for $2.1 billion, has so far received the smallest payment, just $60 million.