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By Bernard Vaughan
NEW YORK (Reuters) - The Associated Press and news aggregator Meltwater News Service have ended their copyright dispute, which had drawn close scrutiny within the media industry because of its potential impact on how news is distributed online.
The AP had accused Meltwater, a subscriber-only electronic clipping service, in a lawsuit early last year of copying "substantial infringing excerpts" of its stories and delivering them to corporate customers.
In a filing on Monday in U.S. District Court in Manhattan, lawyers for both parties said all remaining claims and counterclaims had been dismissed.
The AP and Meltwater separately announced a partnership to "seek to create new revenue opportunities for both parties through the sale of new products" through Meltwater's sales network.
Meltwater had argued that its use of AP works was covered by the fair use doctrine, which allows for the use of copyrighted works for purposes including criticism, comment and news reporting.
In March, U.S. District Judge Denise Cote sided with the AP, saying Meltwater violated the AP's copyright by excerpting its articles without a license and redistributing them to Meltwater subscribers.
Meltwater Chief Executive Jorn Lyseggen, had vowed to appeal, but in a statement on Monday said: "There is more to be gained by working together to develop new markets and reaching new customers than can be achieved through adversarial paths."
Gary Pruitt, AP's president and chief executive, said: "The litigation is behind us, and we are looking forward to partnering with Meltwater."
The case is Associated Press v Meltwater U.S. Holdings Inc, U.S. District Court, Southern District of New York, No. 12-01087.
(Reporting by Bernard Vaughan; Editing by Leslie Adler)