Peer to peer network iMesh has reached an out of court settlement with the Recording Industry Association of America, which earlier alleged the company facilitates unauthorized file trading.

Under the conditions of the settlement, iMesh has agreed to settle claims with the record companies for $4.1m and go legitimate.

In September 2003 the major record companies brought a lawsuit against iMesh in the federal court for the Southern District Court of New York for contributing to the illegal copying and ...