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In-flight entertainment firm settles with Universal Music for $20 million
By Chris Cooke | Published on Wednesday 17 August 2016
You know, it occurred to me the last time I actually left Shoreditch and flew in one of those planes they have nowadays, that in this here Netflix/Spotify age, the in-flight entertainment systems the airlines have feel positively ancient, in terms of look and feel, functionality and content selection.
Those plane people should just get plug sockets and wi-fi installed, put an iPad holder on the back of every seat, and let us get on with using our content-on-demand platforms of choice. Though of course, licensing complexities only increase when you’re in the air.
One company that will be hoping in-flight entertainment systems still have a solid future is Global Eagle Entertainment, which has just agreed to pay Universal Music $20 million in damages to settle a copyright dispute.
The major accused the in-flight entertainment firm of copyright infringement after it put tracks owned by Universal into the content system it provides to companies like American Airlines and US Airways. Global Eagle initially tried to exploit the aforementioned complexities of mid-flight copyright law – “we didn’t do any copying in your jurisdiction” – and then argued that past negotiations with Universal resulted in an implied temporary licence via which the in-flight entertainment firm could use the music company’s tunes.
As previously reported, a judge rejected both of those arguments in a summary judgement earlier this year. A legal filing made earlier this month now shows that the two companies have reached a deal, which will see Universal receive $20 million in damages, plus over a million shares in Global Eagle, and further equity if the plane-music-provider’s share price rises about ten or twelve dollars a share.
And, as a Global Eagle shareholder, I guess that means Universal is now also hoping that in-flight entertainment systems still have a solid future. But personally I’m still backing the plug-socket-and-wi-fi future.
