Videos by artists like The Strokes and The White Stripes will not disappear from MTV in Europe after a deal was struck with independent record labels.
The White Stripes were one of the bands affected
Smaller labels were threatened with a boycott if they did not agree to a royalty cut of 55%.
The Association of Independent Music said it was "very happy" with the deal.
And MTV Networks Europe said by signing the agreement, it was "making a firm statement of our unwavering commitment to indie artists and labels".
MTV has signed the deal with Video Performances Limited, which represents 167 smaller labels, to show videos by their acts.
The labels include Rough Trade, home of The Strokes, Telstar, which releases Craig David, and XL, whose roster includes The White Stripes and Dizzee Rascal.
The Association of Independent Music said: "Independent record companies were today celebrating a deal that clearly establishes the value of the video rights licensed to MTV."
Details of the deal were confidential but it achieved "fair value for the use of videos", a statement said.
Martin Mills, chairman of the Beggars Group of labels said: "We're delighted that the music people at MTV have seen fit to accept the right of independent labels and artists to be fairly remunerated for the use of their valuable rights."
MTV confirmed a "wide range of independent artists and labels" would continue to be shown on its stations.
MTV Networks Europe president Brent Hansen said the deal showed how important the smaller labels were to the network.
"MTV Networks Europe is and always has been the home of independent music and artists," he said.
Independent labels would continue to benefit from the "sales uplifts and improved chart positions generated by exposure on MTV channels", a statement said.
The dispute stems from a 1998 deal, in which independent labels signed a £1.9m contract for videos shown across MTV channels in Europe.
When this contract expired, the labels refused reduced royalties of £840,000.