Sharman Networks, the company behind the Kazaa P2P program have finally reached a settlement with the record industry.  The deal has the company paying out more than $100 million to the labels in exchange for all pending litigation to be dropped.

While the record labels pushed this settlement as a victory over P2P, and tried to cast Sharman Networks in a bad light, Sharman instead pointed out that this settlement actually legitimizes P2P as a viable download medium for digital content.

The question now remains of if this settlement is too little too late for the beleaguered company/file sharing network, or if it will be the shot in the arm it needs to make a comeback.