Viacom says it's settled its $1 billion copyright lawsuit against YouTube.

Terms of the deal weren't disclosed.

New York-based Viacom Inc. filed the suit in 2007, claiming that YouTube was aware that thousands of videos on its site were stolen from its TV networks such as Comedy Central, MTV and Nickelodeon.

Litigation dragged on for years, but a federal judge ruled last year that the online video site didn't have to police itself as long as it removed infringing videos when copyright owners gave it notice.

Viacom and Google Inc., which bought YouTube in 2006, say the settlement reflects increasing talks between the two companies related to important opportunities.