• Folio, Friday, February 20, 2009 9:45 AM

In the standoff between magazine publishers and a wholesaler that distributes their titles to the newsstand, the wholesaler blinked. Time Inc. has reached an agreement with Source Interlink to distribute its magazines. Source gave up its efforts to increase per-copy distribution fees by 7 cents, which Time refused to pay.

The agreement effectively settles Source's antitrust lawsuit with Time Inc. and Time Warner Retail. Time was one of the first companies to say it would stop using Source to distribute its titles because of the new per-copy fee. Under the multi-year agreement, Time Inc. will not have to pay the fees.

Last week, Source was awarded a temporary restraining order against publishers and rival wholesalers, including Time. The order had prohibited publishers and national distributors from denying shipments to Source. Anderson News also threatened publishers with the 7-cent surcharge. When they balked, it ceased its magazine distribution operation.

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