Warner Music Group said Thursday that it had dropped its lawsuit against video sharing site imeem, as the two sides agreed on a revenue sharing deal.

The label had sued imeemin mid-May , claiming the site was allowing its users to share content from the label without permission. It sought an injunction against the site as well as monetary damages.

Under the terms of the deal, imeem would share a portion of its advertising revenue in exchange for access to the entire online catalog of Warner music and videos. The exact percentage was not disclosed.

imeem created the basic platform to allow it to share its ad revenue with labels in mid-June. While it had success in attracting the smaller independent labels, no major label had signed on to the offering until now.

"Our strategic partnership with Warner Music Group represents a very significant milestone for imeem - we are now able to offer our users an impressive level of free, interactive, and ad-supported access to an amazing catalog of both audio and video from a major record label," imeem founder and CEO Dalton Caldwell said.

Such deals have recently come into favor by the record labels over drawn out lawsuits. For example, three of the four major labels have signed agreements with YouTube that are similar to that of imeem's.