LimeWire and the Recording Industry Association of America (RIAA) have settled their legal case out of court for $105 million dollars.

The court case was just a few days underway and was originally for over $1 billion in damages. But late Friday, the two announced a settlement which will see LimeWire paying 13 different record labels for music copyright infringements.

RIAA Chairman and CEO Mitch Bainwol said:

We are pleased to have reached a large monetary settlement following the court’s finding that both LimeWire and its founder Mark Gorton personally liable for copyright infringement. As the court heard during the last two weeks, LimeWire wreaked enormous damage on the music community, helping contribute to thousands of lost jobs and fewer opportunities for aspiring artists.

The significant settlement underscores the Supreme Court’s unanimous ruling in the Grokster case — designing and operating services to profit from the theft of the world’s greatest music comes with a stiff price. The resolution of this case is another milestone in the continuing evolution of online music to a legitimate marketplace that appropriately rewards creators. This hard fought victory is reason for celebration by the entire music community, its fans and the legal services that play by the rules.
I think this represents a big step for copyright owners, and a final nail in the LimeWire coffin! I wonder if this will have any significant impact on other illegally distributed copyrighted stuff, particularly the places that make distribution possible like the torrents, p2p networks and rapidshare-type download sites.