Kuro, one of Taiwan's best-known file-sharing services, has settled with the recording industry on Friday, agreeing to pay a substantial sum as well as shutting down its networks.

Under the settlement with record companies represented by IFPI Taiwan, Kuro's operator, Taipei-based Fashion Now Co Ltd, will stop distributing its p2p software program immediately and will ensure closure of the copyright-infringing service by 15th October.

IFPI General Counsel & Executive Vice-President Geoff Taylor said peer-to-peer networks undermine legitimate online music services where customers and companies respect copyright.

This settlement, Taylor said, confirms that there is a bright future for legal online music services, while services that try to build a business on copyright theft pay a heavy price.

Kuro is the latest peer-to-peer services to settle with the recording industry. It follows major settlements with the recording industry by Korea's Soribada and Taiwan's Ezpeer.

In July the operators of Kazaa, which had been ruled illegal in Australia, paid a record $115 million in damages to the record companies. On September 12th, the service EDonkey.com reached a settlement in the US.