According to The New York Times, Merlin, a Netherlands-based group that represents more than 12,000 independent labels internationally, filed a federal lawsuit against LimeWire charging that the file-sharing company has failed to fulfill an agreement to reach a settlement with the group.

According to, LimeWire settled with the National Music Publishers Association earlier this year and agreed to pay music publishers $12 million, awarding $105 million to the four major labels. The Times report states that when LimeWire had signed agreements in 2009 and 2010, the company promised that if a settlement was reached with the major labels, there would be a settlement offered to the independent labels on the same terms.

Since May, LimeWire has failed to make a settlement offer to Merlin, and though not every indie label is represented by Merlin, states that other non-affiliated indie labels would be able to take advantage of the terms of each deal.