Only a couple of months after its launch in October, controversial Florida-based music service Aurous has agreed to cease all operations and to shut down, as part of a $3 million settlement with record labels.

The decision follows legal proceedings for copyright infringement initiated by US record labels trade body the RIAA on behalf of major labels Atlantic Records, Capitol Records, Sony Music Entertainment, Universal Music Group, and Warner Bros. Records.

Within days of the launch, the plaintiffs were granted ...