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Napster has signed a deal with Bertelsmann AG, owner of BMG music, which will see the peer-to-peer file-sharing service charge the public for use.

Napster CEO Hank Barry says Napster users may pay $4.95 a month to use the service, according to reports online (see recommended links below).

Bertelsmann will own a part of Napster, drop its law suit against the company and loan Napster funds to re-develop to the file-swapping service. The 'BMG' Napster will feature a link to CDNow (bought by Bertelsmann last year) and contain BMG songs. There will still be free MP3s available.

The RIAA has declared it is still suing Napster regardless of the deal. The four remaining major labels are not expected to follow Bertelsmann's path in the near future. There may well be more to be gained from a victory over Napster in the courtroom than negotiating for peace in the boardroom.

Recommended links:
'New Napster' won't be free
Napster deal doesn't end threat of shutdown
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