Marriott Settles for $52M Over Data Breaches, Days After Sony Music Lawsuit

Key Takeaways

• Marriott has agreed to pay $52 million to settle an FTC data breach lawsuit.
• The hotel operator was subject to a data breach in 2018 that exposed the personal information of over 380 million customers.
• The penalty comes just two days after the company settled Sony’s copyright infringement lawsuit.

Marriott International has made headlines twice in recent days, reaching significant settlements with the Federal Trade Commission (FTC) and Sony.

In one case, Marriott agreed to pay $52 million to settle allegations tied to a massive 2018 data breach. Separately, the hospitality giant settled a copyright lawsuit with Sony Music Entertainment regarding alleged misuse of copyrighted material in social media posts.

$52M Settlement Over Data Breaches

Marriott’s legal battle with the FTC and a coalition of 50 attorneys general stems from a 2018 data breach that exposed the personal information of over 380 million customers. 

The breach, which affected the guest reservation database of Marriott subsidiary Starwood, compromised the names, phone numbers, passport details and credit card information of guests worldwide.

Commenting on the breach, Connecticut Attorney General William Tong said: “Companies have an obligation to take reasonable measures to protect consumer data security. Marriott clearly failed to do that.”

Under the terms of the settlement , Marriott has agreed to overhaul its cybersecurity systems and committed to minimizing the amount of customer data it collects and retains.

Sony Music Settles Copyright Infringement Lawsuit

While dealing with the fallout from the data breach, Marriott also settled a copyright infringement lawsuit filed by Sony Music Entertainment and its affected record labels. 

The lawsuit alleged that Marriott hotels had been using Sony’s music in social media posts without obtaining the necessary licenses. 

According to the complaint, Marriott employees regularly posted videos on social media platforms that featured Sony-owned music in the background. The “willful conduct” allegedly spanned multiple Marriott properties, resulting in what Sony described as “rampant” copyright infringement.

Although the terms of the settlement have not been disclosed, Sony’s decision to pursue the case reflects a broader trend of media companies enforcing their intellectual property rights in digital spaces.

In the age of unlimited streaming, it can often feel as if music has become a freely available commodity. But for companies like Marriott, whose operations extend across multiple online platforms, non-compliance with copyright laws can land them in serious legal and financial trouble.

Legal Battles Underscore Marriott’s Challenges

The two settlements, though distinct in nature, illustrate the financial and reputational risks compliance failures pose to businesses.

The $52 million data breach settlement is one of the largest penalties of its kind in recent history. Meanwhile, the resolution of the Sony Music lawsuit demonstrates the evolving complexities of copyright enforcement in the digital era.