![](\"https:\/\/upload.wikimedia.org\/wikipedia\/en\/thumb\/1\/1c\/Universal_Music_Group.svg\/220px-Universal_Music_Group.svg.png\")
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Global Eagle Entertainment Inc. (the \u201cCompany\u201d or \u201cwe\u201d) and certain of its subsidiaries entered into a Settlement Agreement (\u201cSettlement Agreement\u201d), dated as of August 9, 2016 (the \u201cSettlement Date\u201d), with UMG Recordings, Inc., Capitol Records, LLC, Universal Music Corp. and entities affiliated with them (collectively, \u201cUMG\u201d) resolving all claims relating to the previously disclosed lawsuit filed by UMG against the Company and certain of its subsidiaries for music copyright infringement and related claims. UMG and the Company have agreed to dismiss the lawsuit with prejudice and have further agreed that the Settlement Agreement does not constitute any admission of liability, wrongdoing or responsibility by any party to it.
The Settlement Agreement contains a mutual release between the Company and UMG and, subject to certain exceptions, their respective subsidiaries and affiliates, and a release by UMG of the Company\u2019s customers and of the Company\u2019s and its customers\u2019 authorized integrators and other vendors of all claims under foreign or U.S. law relating to any alleged infringing use of \u201cUMG Content\u201d (as defined below) prior to the Settlement Date.\u00a0 The Settlement Agreement defines \u201cUMG Content\u201d as original works of authorship owned or controlled by UMG or its affiliates, and including but not limited to sound recordings, musical compositions, music videos and related artwork, logos, artist name, voice, likeness and similar rights and metadata.<\/p>\n
In addition, the Settlement Agreement provides that the Company and UMG will use their best efforts to negotiate and execute within 60 days of the Settlement Date a license agreement for the Company\u2019s use of certain UMG Content. And, UMG agreed that, to the extent the Company uses (until February 1, 2017) any UMG Content that it used on or prior to the Settlement Date, UMG will refrain from initiating any legal or other proceedings asserting any claim against the Company, its customers and their authorized vendors arising from any alleged infringing use of UMG Content.<\/p>\n
As part of the settlement, the Company agreed to compensate UMG and\/or its designees as follows: (1) within two business days of the Settlement Date, a cash payment of $15,000,000 plus the issuance by the Company of 1,360,544 shares of its common stock (the \u201cInitial Shares\u201d); (2) on or prior to March 31, 2017, a cash payment of $5,000,000; (3) if at any time the closing price of the Company\u2019s common stock on the Nasdaq Capital Market (\u201cClosing Price\u201d) exceeds $10.00 per share, the issuance by the Company of 500,000 shares of its common stock; and (4) if at any time the Closing Price exceeds $12.00 per share, the issuance by the Company of 400,000 shares of its common stock.\u00a0 We refer to the shares issuable pursuant to the foregoing clauses (3) and (4) as the \u201cSupplemental Shares.\u201d\u00a0 The Company may satisfy all or part of any Supplemental Share obligations in cash at its election.<\/p>\n
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Source: https:\/\/www.sec.gov
Image source: Vivendi<\/p>\n","protected":false},"excerpt":{"rendered":"
Global Eagle Entertainment Inc. (the \u201cCompany\u201d or \u201cwe\u201d) and certain of its subsidiaries entered into…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","footnotes":""},"categories":[23],"tags":[],"class_list":["post-6140","post","type-post","status-publish","format-standard","hentry","category-music-news"],"_links":{"self":[{"href":"https:\/\/skylight.gr\/index.php\/wp-json\/wp\/v2\/posts\/6140","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/skylight.gr\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/skylight.gr\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/skylight.gr\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/skylight.gr\/index.php\/wp-json\/wp\/v2\/comments?post=6140"}],"version-history":[{"count":0,"href":"https:\/\/skylight.gr\/index.php\/wp-json\/wp\/v2\/posts\/6140\/revisions"}],"wp:attachment":[{"href":"https:\/\/skylight.gr\/index.php\/wp-json\/wp\/v2\/media?parent=6140"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/skylight.gr\/index.php\/wp-json\/wp\/v2\/categories?post=6140"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/skylight.gr\/index.php\/wp-json\/wp\/v2\/tags?post=6140"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}