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The Intellectual Property StrategistColumns & Departments

IP News

By Howard Shire and Justin Tilghman
June 01, 2024

In the case of Warner Chappell Music, Inc. v. Nealy, No. 22-1078 (U.S. May 9, 2024), the Supreme Court of the United States upheld the Eleventh Circuit's ruling that, under the discovery rule, a party who files a timely claim for copyright infringement can recover monetary damages, even for copyright claims that date back more than three years from when the lawsuit was filed.

In 1983, Sherman Nealy and Tony Butler established Music Specialist, Inc., a music venture designed to help artists overcome the challenges of the music industry. The company released one album and several singles before dissolving a few years later. Nealy was subsequently sentenced to two separate prison terms for drug-related offenses. During Nealy's incarceration, Butler, without Nealy's knowledge, agreed to license Music Specialist's music to Warner Chappell Music. Notably, one of Music Specialist's songs, "Jam the Box," was used to create the hit song "In the Ayer" by artist Flo Rida. This song achieved significant commercial success, being licensed in several television shows.

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