How Far Back Can You Go: Supreme Court to Decide Circuit Split on Recovery of Copyright Damages

How far back can a plaintiff recover damages in a copyright infringement case?  Scott Hervey and Jamie Lincenberg discuss this contested copyright law question in this installment of "The Briefing" by Weintraub Tobin. Watch this episode on the Weintraub YouTube channel here. Show Notes: Scott: Just how far back can a plaintiff in a copyright infringement case go in recovering damages? I'm Scott Hervey of Weintraub Tobin, and today, I'm joined by my colleague Jamie Lincenberg. We will take a look at an important and contested question in copyright law, which is headed to the Supreme Court this spring, on today's episode of "The Briefing" by Weintraub Tobin. Jamie, welcome back, and thank you for joining us today. Jamie: Thanks, Scott. Happy to be here. Scott: Jamie, can you tell us more about the topic that we're diving into here? Jamie: Of course. In the case of Nealy versus Warner Chappell Music, the Supreme Court will be discussing the question of when the clock starts ticking in the Copyright Act's three-year statute of limitations and whether a copyright claim plaintiff can recover damages beyond the three years from when the claim was filed. The justice's decision to hear this case highlights a circuit split on the matter. The case began in 2018 when music producer Sherman Nealy filed a lawsuit against Warner Chappell Music and Artists Publishing Group. It was a run-of-the-mill copyright infringement case in which Nealy claimed that Flo Rida's 2008 song "In The Sir" featured an unlicensed sample of a 1984 track that Nealy had owned. And now, almost six years later, Nealy's lawsuit is headed to the Supreme Court to answer the unresolved questions of whether damages in a copyright case are limited to just the last three years before the case was filed or can damages go back for years, potentially dramatically increasing the amount of damages that a plaintiff can recover? Scott: The debate at the center of the case against Warner Chappell goes back to the case of Petrella versus MGM, when the Supreme Court ruled that the movie studio MGM could be sued for copyright infringement over the Scorsese-directed film "Raging Bull". Great film, by the way, even though the case was filed decades after the film had first been released in 1980, MGM argued that such a long delay was unfair, but the Supreme Court decided that the Copyright act has a three-year statute of limitations that resets with every new infringement. Jamie: Yeah, that's right. Under the court's interpretation of the law in that case, as long as copies of allegedly infringing material, whether a book or a song or movie, had been sold during the three years prior to the lawsuit, it was ripe for a copyright case. Unsurprisingly, that ruling then led to a burst of infringement cases that had been long delayed, including a high-profile lawsuit against Led Zeppelin over the very popular 1971 song "Stairway to Heaven." Scott: But with respect to the awarded damages in the Raging Bull case, the late Justice Ruth Bader Ginsburg stated that a successful plaintiff can gain retrospective relief only three years back from the time of the suit. No recovery may be had for infringement in the earlier years. Profits made in those years remain the defendants to keep. In the years since the rulings in the New York U. S. Court of Appeals for the Second Circuit have abided by that decision, and copyright accusers have not been awarded damages for any conduct past that three-year mark. In 2021, the judge of the Nealy case cited "Raging Bull" and ruled that Nealy was not entitled to damages from earlier than 2015. Nealy said he had only learned of the illegal sample in 2016 and wanted damages dating back to the song's release in 2008, and the judge cited the Supreme Court's binding precedent in "Raging Bull" that had explicitly limited damages to the three years prior. Jamie: That's true, Scott, but that's actually not the case in the US Court o...