Kazaa, one of most well known file sharing networks, has reached an agreement with the music industry over illicit file-sharing this Thursday.

The legal settlement calls for Sharman Networks, the developer of Kazaa, to pay four major music labels over $100 million dollars for proliferating music and movies without permission. Universal Music, Sony BMG, EMI and Warner Music all seek damages.

There are very substantial damages being paid - in excess of $100 million, said IFPI Chairman and Chief Executive John Kennedy. They've had time to prepare for this, he added.

Upon the payment, Kazaa networks will no longer be under scrutiny and will operate as a completely legal network.

“This settlement marks the dawn of a new age of cooperation between P2P technology and content industries which will promise an exciting future for online distribution in general and Kazaa users in particular,” said Nikki Hemming, CEO of Sharman Networks.

Kazaa is one of the first and most widely utilized peer-to-peer networks. Designed to allow users to share files between each other, the network quickly rose to become one of the dominant ways to swap illegal software, music, and movies.

Today marks the close to the Metro-Goldwyn-Mayer Studios Inc, et al., v. Grokster, Ltd and the Universal Music Australia Pty Ltd & Ors v. Sharman License Holdings Ltd & Ors copyright cases.