The Supreme Court made a significant decision on Thursday in a copyright case involving a music producer seeking damages over a sample used in a popular Flo Rida song. The ruling, with a 6-3 majority, favored Sherman Nealy, who filed the lawsuit over music used in the 2008 hit song “In the Ayer” by Flo Rida, which was also featured on TV shows like “So You Think You Can Dance.”
Nealy's lawsuit alleged that he was unaware of his former collaborator's deal with a record company that allowed the sampling of the song “Jam the Box” while he was in prison. He initiated legal action in 2018, seeking damages dating back to the song's release.
Under copyright law, lawsuits must be filed within three years of the violation or its discovery. The record company, Warner Chappell, contended that Nealy should only be entitled to three years' worth of royalties at most. This issue of how far back damages can be sought has caused a division among appeals courts, prompting industry groups like the Recording Industry Association of America to call on the Supreme Court for a resolution.
Justice Elena Kagan authored the opinion, which was supported by Justices Sonia Sotomayor, Ketanji Brown Jackson, John Roberts, Brett Kavanaugh, and Amy Coney Barrett. Kagan emphasized that there is no time limit on monetary recovery for copyright infringement, meaning a copyright owner with a valid claim can seek damages regardless of when the infringement occurred.
Nealy's attorney, Wes Earnhardt, welcomed the clarity provided by the Supreme Court's decision on this crucial issue. However, three conservative justices dissented from the majority opinion. Justice Neil Gorsuch argued that the majority avoided addressing the fundamental question of the validity of Nealy's claim and whether copyright holders should be required to demonstrate fraud to sue over older violations. The dissenting justices believed the lawsuit should have been dismissed.
This ruling sets a precedent in the realm of copyright law and clarifies the rights of copyright owners to seek damages for infringement without a time limit. The decision is expected to have far-reaching implications for future copyright cases in the music industry and beyond.
