Failed online music-swapping service Napster is to be acquired by Roxio, which makes CD-burning software, for $5.3m (�3.6m) in cash and shares.

Roxio will buy all the assets and intellectual property rights, but not any of the liabilities including those arising from litigation, the company said.

Roxio's chief executive, Chris Gorog, said buying Napster would "expand our role in the digital media landscape and enhance our offerings to consumers".

However, the company did not outline its plans for Napster's future, but promised to give more details in coming months.

Cash and shares

Napster, which is in Chapter 11 bankruptcy, ceased operations in September.

The sale of Napster, if approved by the US bankruptcy court, would close a lengthy and complex chapter in the history of the internet.

The Nasdaq-listed firm offered $5m in cash and 100,000 warrants in Roxio shares, which were valued at $3.38 on Thursday.

On 3 September, the bankruptcy court barred the sale of Napster to Bertelsmann, a German media giant, after worries over whether the deal had been done in good faith.

Copyright issues

Since then, a number of other closed bids have been put forward, with the reserve price of $6m.

Napster at its peak attracted millions of users who exchanged music files across the internet.

But the firm provoked the wrath of record companies who felt the service was effectively allowing users to download and use music files without copyright and crucially without paying.

After lengthy legal action the service was shut down and despite promises that it would one-day relaunch it has struggled financially.

A whole host of similar services to Napster have sprung up, many of which face legal action, while official services, such as Pressplay, have also launched.