Stelios Haji-Ioannou has stumped up £210,000 in an out-of-court settlement with the British Phonographic Industry (BPI) after his easyInternet Café chain was found guilty of copyright infringement.
In January a High Court judge found easyInternet guilty of infringing music copyright with its promotion that allowed customers to download and burn music to CDs for £5.
The BPI initially demanded £1m in damages, but Stelios insisted he would contest the decision.
In this settlement, however, Stelios has agreed to pay £80,000 in damages as well as the BPI's legal costs, bringing the total to £210,000.
"The BPI originally asked for £1m damages, so at least they've settled for a 92 per cent reduction. Every legal case has a settlement value and I have five companies to launch in the next year," said Stelios, chairman of the easyGroup.
"What is interesting is that they preferred to settle rather than to test whether they can continue to enforce the prohibition of music downloads," he added.
Peter Jamieson, the BPI's executive chairman, said: "easyInternet Café is liable for a clear and profound breach of copyright and I am glad that Stelios has seen sense and agreed to settle this case.
"The irony should not be lost on anyone that someone who aggressively protects their own intellectual property, as is the case with Stelios and the Easy Group, should seek to offer a commercial music service without paying the creators of the copyright."
But Stelios countered: "I think this is the warm-up lap since I suspect I will be back in court with the same people, the media giants, when easyCinema has to sue the film distributors for basically the same thing: restrictive practices at the expense of the consumer."
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