“We are extremely happy that Sony Music has worked out a solution with The Offspring and its management that supports the integrity of the band’s creative idea and enables them to proceed with their promotion,” a Columbia Records spokesman said in a statement on Monday.

The Offspring reportedly decided against posting the entire Conspiracy of One album on its Web site because the ensuing litigation could have paralyzed the band.

“The band feels that maintaining the integrity of this promotion, getting the record out, and being able to tour is more important than spending the next 12 months in court,” Offspring manager Jim Guerinot told radio trade magazine Hits on September 22.

“The only people unable to post music on the Internet appear to be those who actually create it. … The hypocrisy of The Offspring being asked to observe a strict 55 mph speed limit when the rest of the world is driving at 70 mph is staggering,” he said.

Both sides were apparently prepared to file lawsuits last week against each other over the matter, but the “solution” was reached before legal action was taken.

A week earlier, The Offspring announced they would make the new album available for free on the Web in late October. The release is scheduled to hit stores November 14.

The plan posed a direct conflict with the recording industry’s accusation that Napster’s song-swapping technology hurts music sales and violates copyrights.

The band is signed to Columbia Records, which is owned by Sony Music – one of the five big labels suing Napster. According to published reports, Sony Music told The Offspring earlier this month to cancel the promotion but the group refused.

According to the Los Angeles Times, Sony was prepared to seek a temporary restraining order and an injunction to keep the group from executing its plan to post the downloadable files.

Several meetings last week led to an agreement on September 22 but legal restrictions prevented band representatives from commenting, the Times reported.

On September 25, a Sony spokesman said the new single, “Original Prankster,” will still be available for downloading September 29, when The Offspring launch a contest giving fans a chance to win $1 million by downloading the single and registering their e-mail address with the band.