Amazon, Netflix, and several major movie studios have agreed in principle to a settlement that would end their copyright infringement case against streaming device maker Dragon Media Inc., according to a Jan. 17 court filing.

The parties are preparing a settlement agreement and intend to file related documents with the U.S. District Court for the Central District of California “within the next few days,” Dragon Media told the court.

The plaintiffs’ group, which also includes Disney Enterprises Inc....