Back in April, we reported that Warner Music was suing AnywhereCD for selling unprotected MP3 copies of its music. AnywhereCD countersued shortly afterward.

According to BloggingStocks, both companies decided to drop the lawsuits and simply terminate the agreement they originally signed last year. This comes as Warner enters into an agreement with Lala.com to stream music directly to people's computers and iPods. Presumably that idea is more appetizing to Warner, since they still control how the music is used in that scenario.

Meanwhile, EMI continues to make Warner and the other big labels look out of step with consumers.

Warner Music lawsuit dropped as new announcement takes hold [BloggingStocks]