Grokster Ltd., facing a copyright infringement lawsuit for developing software that can be used to swap pirated music and movies, is in talks to be acquired by a company that wants to build a legal file-sharing service, a newspaper reported Monday.

The Wall Street Journal, citing unnamed people with knowledge of the talks, said Mashboxx probably would work out a revenue-sharing arrangement with Grokster because Grokster itself likely would have little or no value.