The musician wanted $1m (£600,000)
each from 22 internet users but,
according to celebrity gossip website
TMZ which has obtained court
documents, he has now decided not to
pursue the case.
In a statement, the artist's lawyer told
TMZ that the illegal downloads had been
removed.
Fans had reacted angrily to the news of
the legal action.
The Purple Rain singer had intended to
take legal action against 22 internet
users who allegedly posted copies of his
live performances on Facebook and on
blogs.
"Because of recent pressure, the
bootleggers have now taken down the
illegal downloads and are no longer
engaging in piracy," his lawyer said.
"We recognise the fans craving for as
much material as possible, but we'd
prefer they get it from us directly than
from third parties who are scalpers
rather than real fans of our work," the
statement read.
Media lawyer Steve Kuncewicz had told
BBC Radio 5 live that the action was
essentially "going to war with his own
fan base".
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