A landmark decision by the US Supreme Court has paved the way for music producer Sherman Nealy to seek compensation for copyright infringement. 

The ruling allows Nealy to pursue damages spanning more than ten years, relating to an unlicensed sample of his work in Flo Rida's 2008 hit 'In the Ayer.'

Court Ruling Expands Warner Music Copyright Damages

In a 6-3 ruling issued on Thursday, the court's decision could broaden the range of damages in cases where plaintiffs were previously unable to seek compensation for infringement that took place more than three years before filing a lawsuit.

In certain situations, individuals may have the opportunity to receive more considerable compensation if they choose to delay their lawsuit and allow damages to accumulate rather than attempt to halt the alleged infringement immediately. 

However, it is essential to note that any legal action must still be initiated within the specified time frame set by the statute of limitations.

The Hollywood Reporter claimed that when the Supreme Court agreed to review the case, it was ready to resolve a copyright issue that had long caused disagreement among federal appeals courts. 

Based on the Copyright Act, a plaintiff must take legal action "within three years after the claim accrued."

Several interpretations exist of when the window to sue begins. According to one viewpoint, it begins with the infringement, known as the injury rule.

Another viewpoint is that it begins when the infringement is detected, known as the discovery rule.

Supporting the latter option would allow plaintiffs to submit claims for previous infringements if they were aware of them within three years of starting legal action.

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Copyright Infringement of 'Jam the Box'

The case centers on the 1984 song "Jam the Box," owned by Sherman Nealy's Miami record label Music Specialist and sampled by Flo Rida in 2008. At the time, though, Nealy was in prison and unaware of the usage. 

The individual involved claimed that his label's music was used without authorization and that his former business partner had no authority to grant licenses. 

According to Reuters, lawsuits were filed against Atlantic Records, Warner Chappell, and Artists Publishing Group. 

Nealy requested damages dating back ten years, a claim that Warner Chappell disputed by arguing that he could only be awarded damages for infringement starting from 2015.

During the summary judgment, the music publishers contended that Nealy failed to initiate legal proceedings for copyright infringement within the prescribed three-year timeframe. 

The federal judge overseeing the case reached a consensus, but the 11th US Circuit Court of Appeals overturned his decision. 

A recent discovery states that the timeframe for the statute of limitations is three years, starting from the moment the copyright owner becomes aware or has a valid reason to believe that they have suffered harm. 

The finding supports the application of the discovery rule under the Copyright Act, which states that the statute of limitations begins when the plaintiff becomes aware of the infringement, rather than when it occurs.

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