U.S based ticket sales and distribution company Ticketmaster Entertainment LLC has agreed to pay a $10 million fine to avoid prosecution on hacking and illegally accessing the computer system of a rival company, Songkick.
Songkick primarily engages in artist presales in which often some tickets are set aside for fans prior general ticket sales begins.
The company hacked by Ticketmaster later sold its assets to Live Nation Entertainment Inc. (LYV). Songkick claims Ticketmaster repeatedly accessed its computer systems.
According to the complainant, during the period August 2013 to December 2015 employees from Ticketmaster were using stolen passwords repeatedly accessing computer systems belonging to Songkick stealing confidential business information.
The case was held in Brooklyn federal court before U.S Judge District Judge Margo Brodie who ruled that the fine will be part of a three-year deferred prosecution agreement between the U.S. Department of Justice and Ticketmaster.
In the agreement, Ticketmaster agrees to five criminal counts including computer intrusion, wire fraud and conspiracy.
Under the agreement also Ticketmaster is required to maintain a high compliance and ethics procedures designed to detect and prevent cybercrime related activities.