60 F.4th 1325
11th Cir.2023Background
- MSI and Sherman Nealy allege Warner Chappell, Artist Publishing, and Atlantic exploited MSI songs under invalid licenses from third parties, infringing copyrights MSI/Nealy claim to own.
- Alleged infringements began around 2008; Nealy first learned of third‑party transfers circa 2016 and the lawsuit was filed December 28, 2018.
- The parties stipulated this is an "ownership" dispute, so under Eleventh Circuit precedent the discovery accrual rule governs when the statute of limitations begins to run.
- The district court found a factual dispute about when plaintiffs knew or should have known of the ownership challenge and denied summary judgment on timeliness, then certified an interlocutory question under 28 U.S.C. § 1292(b): whether damages are limited to a three‑year lookback per Petrella.
- The Eleventh Circuit accepted the appeal to decide whether a plaintiff with a timely discovery‑rule ownership claim may recover damages for infringements that occurred more than three years before the suit was filed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether copyright damages are capped to a three‑year lookback even when the claim is timely under the discovery rule | Plaintiffs: a discovery‑rule timely claim may recover retrospective damages for infringements older than three years | Defendants: Petrella bars relief for conduct occurring prior to the three‑year limitations period, so damages limited to three years | Court: No. If the claim is timely under the discovery rule, plaintiff may recover retrospective damages beyond three years; Petrella addressed the injury/separate‑accrual context and §507(b) does not limit remedies |
Key Cases Cited
- Petrella v. Metro‑Goldwyn‑Mayer, 572 U.S. 663 (Supreme Court: laches cannot bar claims timely under §507(b); discussed three‑year lookback in the injury/separate‑accrual context)
- Webster v. Dean Guitars, 955 F.3d 1270 (11th Cir. 2020) (discovery rule governs accrual for ownership‑based copyright claims)
- Starz Ent., LLC v. MGM Domestic Television Distrib., LLC, 39 F.4th 1236 (9th Cir. 2022) (held Petrella does not bar damages for claims timely under the discovery rule)
- Sohm v. Scholastic, Inc., 959 F.3d 39 (2d Cir. 2020) (held Petrella bars recovery for pre‑lookback infringements even if claim timely)
- Calhoun v. Lillenas Publ’g, 298 F.3d 1228 (10th Cir. 2002) (on discovery‑rule application in ownership disputes)
- Edelman v. Jordan, 415 U.S. 651 (Supreme Court 1974) (retrospective relief includes monetary compensation for past breaches)