But even the reduced amount of $54,000 is huge and is likely substantially higher than what the court would have awarded on its own discretion if a jury had not been allowed to determine the damages, said Ray Beckerman, a New York-based lawyer who has handled several music piracy lawsuits.

"It is obviously a great improvement but it is still excessive," Beckerman said."It seems to be based on the judge's conclusion that [Thomas-Rasset] lied under oath," he said. What's surprising, however, is the fact that Judge Davis did not rule on the constitutionality of the damages awarded by the jury, Beckerman said.

The Recording Industry Association of America, which is representing the music labels in this case, has seven days to accept or reject the award. If it rejects it, the case will likely head for another trial. In a statement sent via e-mail, RIAA spokeswoman Cara Duckworth said the industry body is still reviewing the decision and declined further comment.

Thomas-Rasset's lawyer could not be reached immediately for comment.

Thomas-Rasset was found liable last June of willfully infringing copyright on 24 songs and was ordered to pay damages of $1.92 million to the six music labels whose songs she was accused of pirating. The verdict required Thomas-Rasset to pay $80,000 for each of the songs she was accused of illegally distributing over the Kazaa file-sharing network.