SoundCloud has signed a key licensing deal with a company that took legal action against it this year

SoundCloud announced on Monday that it has signed a licensing agreement with PRS for Music, the music rightsholder that launched legal action against SoundCloud in August.

The release from SoundCloud says it has signed an international deal with PRS for Music that will bring the company's artists to SoundCloud's music streaming service.

SoundCloud is expected to release a premium music streaming service in 2016 that will require a monthly subscription - like Apple Music and Spotify.

PRS for Music says the signing of a licensing deal with SoundCloud brings an end to the legal action it threatened against the music streaming service in August.