Federal prosecutors on Monday announced a deal to drop a criminal case against Gibson Guitar Corp after the instrument maker acknowledged its importations of exotic wood violated environmental laws. Nashville-based Gibson agreed to pay a $300,000 penalty, forfeit claims to about $262,000 worth of wood seized by federal agents and contribute $50,000 to the National Fish and Wildlife Foundation to promote the conservation of protected tree species. The case was brought under the US Lacey Act, originally passed in 1900 to regulate trade in bird feathers used for hats but amended in 2008 to cover wood and other plant products. The act requires companies to make detailed disclosures about wood imports and bars the purchase of goods exported in violation of a foreign country's laws. "The agreement is fair and just in that it assesses serious penalties for Gibson's behavior while allowing Gibson to continue to focus on the business of making guitars," US Attorney Jerry Martin said in a statement. Gibson's decision to cooperate with the federal Lacey Act banning the import of endangered wood products stood in contrast to a publicity campaign mounted in protest after agents raided Gibson facilities in Memphis and Nashville. Gibson is considered one of the top makers of acoustic and electric guitars, including the iconic Les Paul introduced in 1952. The exotic woods used in such guitars are considered integral to the sound. And artists who have played Gibson instruments range widely from Chet Atkins and Maybelle Carter in country to Pete Townshend of The Who and Eric Clapton in rock to Larry Carlton and Paul in jazz. Justice and Interior Department officials said in a September letter that those who "unknowingly possess" an instrument made from illegally imported materials don't have a criminal problem. Follow Ynetnews on Facebook and Twitter