The federal judge overseeing the Jammie Thomas-Rasset P2P case gave the recording industry a week to decide if it would accept his decision to slash Thomas-Rasset's damages from $80,000 to $2,250 per song. But the labels haven't decided yet, and they have just asked the judge for more time. In the meantime, they're telling her that she can wipe her hands clean of the whole situation for $25,000.

The "Unopposed Motion for Extension of Time to Notify Court Regarding Plaintiffs' Position on Remittitur" asks Judge Michael Davis to give the labels another 10 days to ponder the matter. The defense attorneys have already agreed to the request, which will likely be approved.

At the same time, the RIAA has given Thomas-Rasset a final settlement offer of $25,000, noting in a letter to her attorneys that a third trial is not in "anyone's interest." Should she accept the offer, it would in turn go to a musician's charity and each party would bear its own attorneys' and court costs. Otherwise, the RIAA will go ahead with the appeal. The RIAA gave her three days to ponder her options. Thomas-Rasset has already chosen to challenge the damage award, and one of her attorneys has since informed CNET that she is going to decline the settlement offer.

So it appears that the case is far from over. Even if the recording industry were to accept the $54,000 in total damages; it made a point in its new filing of talking about its appeals court shot clock, reminding us that it might well accept remittitur (thus ending the trial phase of the case) but then appeal Judge Davis' actions. Given the precedent-setting nature of the case, this would be expensive, exhausting, but not at all surprising.