Universal Music Group Faces Millions of Dollars in Damages After Being 'Scammed'

By Jane Smith | Apr 23, 2016 10:53 AM EDT

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The U.S. judge has ruled against Global Eagle Entertainment company for consciously infringing the copyrights of thousands of songs by Universal Music Group. The company will possible by paying hundreds of millions of dollars in damages.

U.S. District Judge George Wu said the Universal Music Group has provided evidence that shows Global Eagle and its subsidiary, Inflight Productions, "repeatedly making the business decision to continue its unauthorized use" of thousands of songs from singers such as Lady Gaga and Taylor Swift.

According to Fortune, Global Eagle has reportedly used at least 4,500 sound recordings and compositions without permission.

The suit against Global Eagle was filed by Universal Music in 2014. The suit alleges the former for stealing recordings for commercial use, such as passenger entertainment systems, but failed to pay licensing fees.

Under the Federal copyright law, there is a statutory maximum of $150,000 in damages per song. That is, Global Eagle is liable for at least $675 million.

A trial is set next month to determine damages caused by the infringement. On the other hand, Global Eagle, on the other hand, will appeal the decision and defend itself in the scheduled trial.

A spokesman for Universal Music said the company was satisfied by the ruling. "With the upcoming trial on damages, we hope to send a strong message on the value of music, and deter future infringement," he said.

According to Reuters, the company has been collecting money from the airlines for copyright licenses "in anticipation that it would one day need to make amends" for its unauthorized use of the songs, but failed to put any licenses in place, Wu said.

Global Eagle is a LosAngeles-based company that serves 200 carriers worldwide. It provides passengers in airlines with several entertainment options, ranging from movies and television to music.

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