In a surprising move today, Bertelsmann AG, parent company of BMG Entertainment and, more importantly, one of the 5 companies suing Napster, has agreed to drop its suit once Napster rolls out its membership-based service.
Furthermore, Bertelsmann AG has formed a partnership with Napster to help develop the membership-based service into a full-fledged, secure system. The two companies will work together in rolling out the service, and Bertelsmann AG plans to make an investment to ensure that it happens properly.
Full details are available in a Reuters article based on the press release from the two companies.