US Supreme Court Rules Against Warner Music In Copyright Damages Case

US Supreme Court Rules Against Warner Music In Copyright Damages Case

The U.S. Supreme Court on Thursday ruled in favor of a Miami music producer in a legal fight with Warner Music over a song by rapper Flo Rida, finding that there is no time limit for recovering monetary damages in copyright cases that have been filed before the expiration of a statute of limitations.

In a 6-3 ruling, written by liberal Justice Elena Kagan, the Supreme Court affirmed a lower court's decision that favored producer Sherman Nealy. Nealy had filed a lawsuit against a Warner subsidiary and other parties in a Florida federal court back in 2018.

Nealy has asserted that his label Music Specialist holds the rights to the electronic dance track "Jam the Box" by Tony Butler, also known as Pretty Tony. Warner artist Flo Rida, whose legal name is Tramar Dillard, integrated elements of "Jam the Box" into his 2008 song "In the Ayer."

While Nealy was incarcerated for cocaine distribution, he sued music publishing company Warner Chappell and others, alleging that they obtained an invalid license to "Jam the Box" from Butler, his former business partner. Nealy sought damages for alleged copyright infringement dating back to 2008.

Initially, a federal judge ruled that Nealy could only seek damages for infringement occurring within the three years prior to filing the lawsuit, in accordance with the U.S. statute of limitations for initiating a copyright infringement case after discovering a claim. However, the Atlanta-based 11th U.S. Circuit Court of Appeals overturned this decision, stating that there was "no restriction on damages in a timely action."

The Supreme Court upheld the 11th Circuit's ruling. "The Copyright Act permits a copyright owner to seek damages for any timely claim," Kagan wrote, citing the 1976 federal law central to the case.

"If Nealy's claims are thus timely, he may obtain damages for them," Kagan added.

Warner declined to provide a comment, while a lawyer representing Nealy did not respond immediately to a request for comment.

During the Supreme Court arguments in February, some justices suggested that they might not be able to decide the case until they reevaluate the issue of statute of limitations in a separate dispute before them. Currently, the justices are deliberating whether to address the "discovery rule" in a copyright dispute involving Hearst Newspapers and photographer Antonio Martinelli.

During the arguments, Justice Samuel Alito expressed concern, stating, "What concerns me is that we are being asked to decide a question that may be eliminated based on a subsequent decision" regarding whether the "discovery rule" applies.

Justice Neil Gorsuch echoed Alito's sentiments in a dissenting opinion, which was joined by Alito and Justice Clarence Thomas.