MP3.com has reached an agreement with the performing rights organization Broadcast Music Inc. that will allow songwriters and publishers to collect royalties on songs that are broadcast on the company?s website.

The terms of the licensing deal weren?t revealed, but the company?s shares jumped 3¼ to 13 5/8, a 31% gain on Monday (5/8), the first day of trading following the announcement. Part of the gain was given back in Tuesday?s (5/9) trading, when the stock closed at 12 ¾.

The BMI agreement came on the heels of a ruling by U.S. District Court judge in New York in which a judge said MP3.com could be held liable for copyright violations related to its ''Instant Listening Service'' and ''Beam-It'' service.