A Landmark Case for Copyright Protection

On May 9, the High Court ruled on Warner Chappell Music, Inc. v. Nealy, a copyright lawsuit. The case discussed whether a copyright owner could recover damages for infringements over three years before a lawsuit was filed. The Copyright Act says a lawsuit must be filed within three years of a claim accruing.?

“The underlying dispute arose when Sherman Nealy discovered that, unbeknownst to him, his former business partner had licensed music from their prior company to Warner Chappell while he was in prison. In 2018, Nealy sued Warner Chappell, alleging that he held copyrights to the songs at issue and that Warner Chappell’s licensing activity had infringed his rights. The infringing acts dated back to 2008, ten years before Nealy brought suit. Nealy sought damages and profits for the alleged infringement under the Copyright Act.” - Coblentz Patch Duffy & Bass LLP

Courts previously had disagreed about whether a claim accrues when the infringement happens or when the plaintiff discovers it. So, the question was whether a plaintiff could recover damages for an infringement violation that occurred more than three years before a lawsuit was filed. The court said yes, and in this case, the court applied the discovery rule. Citing that the Copyright Act’s statute of limitations limits how long someone has to file a lawsuit, not how far back they can recover damages.

Statute of Limitations

Copyright is crucial for creators, inventors, and innovative solutions, protecting original work. But what happens if your copyright is infringed? The legal process can be complex, and understanding timelines is essential.

SCOTUS issued the following judgment and opinion:?

Judgment: Affirmed , 6-3, in an opinion by Justice Kagan on May 9, 2024. Justice Gorsuch filed a dissenting opinion, in which Justices Thomas and Alito joined.

“We therefore confined our review to that disputed remedial issue, excluding consideration of the discovery rule and asking only whether a plaintiff with a timely claim under the rule can get damages going back more than three years.” (excerpt)? ?

The Court clarified that the three-year statute of limitations in the Copyright Act applies only to filing a lawsuit, not to the timeframe for which you can recover damages.

What it Means for Inventors

• Peace of Mind: If you discover copyright infringement, you can pursue damages even if it happened more than three years ago.
• Importance of Evidence: The onus remains on you to prove the infringement and the extent of the damages. Keep meticulous records. If keeping records is challenging, enlist help to memorialize what you create.?

“As we enjoy great advantages from the inventions of others, we should be glad of an opportunity to serve others by any invention of ours; and this we should do freely and generously.” -Benjamin Franklin?

Recommendations:

1. You can monitor your work online regularly to identify potential infringements by setting Google Alerts with keywords, searching for similar invention names online, and subscribing to trade publications.
2. Document the date of discovery of the infringement using computer-generated timestamped documentation tools, such as Word documents, emails sent to yourself, or screenshots.?
3. Consult an intellectual property attorney to discuss the next steps if you suspect infringement.

CITATIONS:?

• https://www.oyez.org/cases/2023/22-1078 ?
• Supreme Court Extends Copyright Damages Beyond Three Years | Coblentz Patch Duffy & Bass - JDSupra
• 22-1078_4gci.pdf ( supremecourt.gov )
• Warner Chappell Music, Inc. v. Nealy - SCOTUSblog

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