No Cutoff for Copyright Damages: The Supreme Court's Decision in Warner Chappell Music Inc. v. Nealy

On May 9, 2024, the U.S. Supreme Court issued a ruling in Warner Chappell Music Inc. et al. v. Sherman Nealy et al., Case No. 22-1078, resolving a circuit split in federal courts as to whether it is possible to recover copyright damages for infringements dating prior to the three-year statute of limitations set forth in the Copyright Act. The Court held in a 6-3 ruling that there is no time limit on monetary recovery while leaving the three-year filing deadline intact. The outcome in Nealy has significant implications on the damages available to plaintiffs asserting copyright infringement, potentially expanding the time frame for damages recovery well beyond three years in certain circumstances.

This program will discuss the potential ramifications of the Nealy decision and its effects on pre-existing law concerning the statute of limitations for copyright claims. Topics covered will include:  

• How Nealy may affect the availability of damages in different circumstances involving claims of copyright infringement.

• The Circuit split regarding the application of the "discovery rule" for accrual of copyright claims, and how Nealy affects that split.

• How the Nealy decision relates to the decision in Petrella v. Metro-Goldwyn-Mayer, Inc., 572 U. S. 663, 670 (2014), in which the Supreme Court held that the plaintiff could recover damages "running only three years back" in the circumstances of that case. 

• The continuing availability of equitable defenses such as laches and estoppel in the copyright context based on inaction or failure to pursue known infringement claims.

• The dissent in Nealy and the future of the "discovery rule."

Learning Objectives:

1. Identify statute of limitations issues affecting copyright infringement claims

2. Determine the potential period of damages that may be recoverable for such claims

3. Identify differences between jurisdictions to aid in selecting a forum for assertion of copyright infringement claims

4. Discuss potential future developments affecting the application of the Copyright Act's statute of limitations