LimeWire, the defunct file sharing service, and its owner are agreeing to pay the record labels $105 million to end a 5-year-old copyright-infringement lawsuit.

The settlement, first reported by CNET, came Thursday during the second week of a trial in which a New York jury was sitting to determine how much the Recording Industry Association of America should get paid. LimeWire faced more than $1 billion in damages. The Copyright Act allows damages of up to $150,000 per infringement.

The deal clearly marks the end of a legal era.

The case against the nation’s last for-profit file sharing service c...