A trial in the copyright infringement case had been set to begin on Monday.
YouTube and Schneider agreed to end the case with prejudice, which means it cannot be refiled.
YouTube denied the allegations and said it goes "above and beyond" to protect copyrights.
In a win for YouTube, U.S. District Judge James Donato last month refused to certify the lawsuit as a class action.
The case is Schneider v. YouTube LLC, U.S. District Court for the Northern District of California, No.
Persons:
Maria Schneider, Schneider's, Schneider, District Judge James Donato, Joshua Schiller, Philip Korologos, Boies Schiller, George Zelcs, Stephen Tillery, David Kramer, Wilson Sonsini Goodrich, Rosati Read, Blake Brittain
Organizations:
YouTube, Schneider's San, District, Northern, Northern District of, Thomson
Locations:
Schneider's San Francisco, infringers, U.S, Northern District, Northern District of California, Washington