The web-based service provides widgets for popular social media outlets like MySpace and Facebook that purportedly allow users to more easily search the internet for music files not stored on their own servers. In its lawsuit, Universal accused Playlist of facilitating piracy of its intellectual property by helping users download music for free.
Initially, the lawsuit was filed by three of the largest record labels in the industry, including EMI and Warner Music Group, though EMI has since dropped the case and cut a deal, leaving Warner the sole plaintiff in the case.
The exact details of this new relationship between Playlist and Universal remain unknown, although cnet.com reports that the arrangement is mutually beneficial.
"While it was unfortunate that legal action was necessary, we are pleased to have resolved this litigation in an amicable manner," a Universal spokesman told the news provider.