Nearly two months after trading lawsuits,  Warner Music Group and DRM-free music retailer AnywhereCD have agreed to settle their disputes over whether or not the online store was authorized to sell MP3 downloads without copy protection from WMG’s catalog. In dismissing their respective lawsuits, the two companies say it became clear that the parties had differences as to both the scope of their agreement and the direction of AnywhereCD’s business model. Therefore, they will end their current contract on September 30, 2007. Until that date, AnywhereCD, which was founded by Michael Robertson, the original founder of MP3.com, will continue to sell WMG content on physical CDs as well as corresponding DRM-free downloadable albums. Release

On the same day in April that AnywhereCD launched, WMG demanded that the site remove the label’s digital albums. WMG claimed that the start-up had violated an agreement by selling the record company’s music without copy protection software. At the time, WMG said it did not have a problem if AnywhereCD decided to offer a service to let CD buyers rip their albums into MP3 files. One other thing that differentiated AnywhereCD is that it only sells complete albums—the only choice is between buying a physical CD, which tends to cost more, or an MP3.

• AnywhereCD and Warners Trade Lawsuits Over Right To Sell – Or Remove – DRM-Free Music Downloads