The Sony Music archive has been infiltrated by cyber-crooks, who have illegally downloaded more than 50,000 digital files.
Record company bosses paid $250 million (£156 million) to Jackson's estate in 2010 for the catalogue, including unheard material from studio sessions when the superstar recorded Off The Wall, Thriller and Bad.
A source tells Britain's Sunday Times, "Everything Sony purchased from the Michael Jackson estate was compromised.
"It caused them to check their systems and they found the breach. There was a degree of sophistication. Sony identified the weakness and plugged the gap."
The haul is also said to include a duet with the late Freddie Mercury and Black Eyed Peas rapper will.i.am.
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