Sherman Nealy v. Warner Chappell Music, Inc. ( 2023 )


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  • USCA11 Case: 21-13232     Document: 54-1     Date Filed: 02/27/2023     Page: 1 of 19
    [PUBLISH]
    In the
    United States Court of Appeals
    For the Eleventh Circuit
    ____________________
    No. 21-13232
    ____________________
    SHERMAN NEALY,
    an individual,
    MUSIC SPECIALIST, INC.,
    a Florida Corporation,
    Plaintiffs-Appellants,
    versus
    WARNER CHAPPELL MUSIC, INC.,
    a Delaware Corporation,
    ARTIST PUBLISHING GROUP, L.L.C.,
    a Delaware Limited Liability, Corporation,
    Defendants-Appellees.
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    2                       Opinion of the Court                 21-13232
    ____________________
    Appeal from the United States District Court
    for the Southern District of Florida
    D.C. Docket No. 1:18-cv-25474-RAR
    ____________________
    Before WILSON, JORDAN, and BRASHER, Circuit Judges.
    BRASHER, Circuit Judge:
    This appeal requires us to answer a question of first impres-
    sion about the Copyright Act’s statute of limitations that has di-
    vided our sister circuits. The Copyright Act has a three-year statute
    of limitations. 
    17 U.S.C. § 507
    (b). Under our circuit’s discovery ac-
    crual rule, claims about the ownership of a copyright are timely if
    a plaintiff files suit within three years of when the plaintiff knew or
    reasonably should have known that the defendant violated the
    plaintiff’s ownership rights. Invoking that discovery rule, the plain-
    tiffs in this case—Sherman Nealy and Music Specialist, Inc.—filed
    this copyright action seeking, among other things, damages for in-
    fringement they allege occurred more than three years before they
    filed this lawsuit.
    Despite our discovery rule, the defendants—Warner Chap-
    pell Music, Inc. and Artist Publishing Group, LLC—contend that
    the plaintiffs cannot recover damages for anything that happened
    more than three years before they filed suit. See Sohm v. Scholastic,
    Inc., 
    959 F.3d 39
    , 49-50 (2d Cir. 2020) (accepting this argument).
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    21-13232               Opinion of the Court                        3
    That is, they do not dispute that a plaintiff can file suit over harm
    that occurred more than three years earlier; they just say that the
    plaintiff cannot recover any damages. This is so, they say, because
    the Supreme Court’s decision in Petrella v. Metro-Goldwyn-
    Mayer, 
    572 U.S. 663
     (2014), bars retrospective relief for any in-
    fringement occurring earlier than three years from the date of a
    copyright lawsuit. In response, the plaintiffs contend that the de-
    fendants’ argument is contrary to the text of the Copyright Act and
    takes out of context Petrella’s statements about claims that were
    timely because of a different accrual rule. See Starz Ent., LLC v.
    MGM Domestic Television Distrib., LLC, 
    39 F.4th 1236
    , 1242-44
    (9th Cir. 2022) (accepting this argument).
    The district court certified the following question for inter-
    locutory appellate review: whether damages in this copyright ac-
    tion are limited to a three-year lookback period as calculated from
    the date of the filing of the complaint. After briefing and with the
    benefit of oral argument, we agree with the plaintiffs. We hold
    that, when a copyright plaintiff has a timely claim under the dis-
    covery accrual rule for infringement that occurred more than three
    years before the lawsuit was filed, the plaintiff may recover dam-
    ages for that infringement.
    I.
    This interlocutory appeal arises from Music Specialist, Inc.
    and Sherman Nealy’s copyright infringement suit against Warner
    Chappell Music, Inc.; Artist Publishing Group, LLC.; and Atlantic
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    4                       Opinion of the Court                   21-13232
    Recording Corporation. Because we must decide a pure question
    of law in this interlocutory appeal, we provide the following back-
    ground only as context for our decision. To be clear, “our descrip-
    tion of the facts is not binding on the district court as the actual
    facts will be established later at trial.” Mitsubishi Int’l Corp. v. Car-
    dinal Textile Sales, 
    14 F.3d 1507
    , 1511 n.2 (11th Cir. 1994).
    At its core, MSI and Nealy’s suit alleges that Warner, Artist,
    and Atlantic are infringing their copyrights to certain musical
    works because the defendants are using the works based on invalid
    licenses to the copyrights that they obtained from third parties. The
    licenses are invalid, MSI and Nealy say, because MSI and Nealy, not
    the third-party licensors, are the owners of the copyrights.
    The story of MSI and Nealy’s alleged copyright ownership
    begins in the 1980s. In 1983, MSI was incorporated under Florida
    law with Tony Butler listed as president in the articles of incorpo-
    ration. Later amendments to the articles of incorporation listed
    Nealy as MSI’s president and Butler as its vice president. MSI was
    Nealy’s first venture in the music industry. He provided the fund-
    ing for MSI’s operation, and Butler was a disc jockey who had more
    knowledge than Nealy about the music industry. Butler authored
    or co-authored all the musical works at issue in this case.
    From 1983 to 1986, MSI recorded and released one album
    and several singles on vinyl and cassette. Those singles include all
    the works involved in this case, each of which is registered with the
    United States Copyright Office. Then, in 1986, MSI dissolved as a
    corporation and remained an inactive corporation until its
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    21-13232                Opinion of the Court                          5
    reinstatement in 2017 with Nealy as owner, president, and share-
    holder. Although it dissolved in 1986, MSI’s business did not cease
    until 1989 when Nealy began serving a prison sentence following a
    conviction for distributing cocaine. Nealy was released in 2008.
    While Nealy was in prison, Butler formed another company
    named 321 Music, LLC and began licensing the rights to musical
    works from the MSI catalog. In February 2008, Atlantic obtained a
    license from Butler and 321 to interpolate “Jam the Box,” one of
    the works at issue in this case, into the artist Flo Rida’s hit song “In
    the Ayer.” Then, in July of that same year, Artist and Warner en-
    tered into an agreement with Butler and 321 that purportedly made
    Artist and Warner the exclusive administrators of the music pub-
    lishing rights to all the musical works at issue in this case. Nealy did
    not authorize anyone to exploit the rights to the MSI catalog while
    he was in prison. And Nealy did not continue his involvement in
    the music industry or with MSI while in prison.
    After Nealy left prison, he learned that another third party,
    Robert Crane, was distributing works from the MSI catalog. MSI
    and Nealy’s legal consultant Jonathan Black met briefly with Crane
    and his lawyers in June 2008 to discuss Crane’s use of the MSI cat-
    alog. But nothing came of that meeting. Nealy recalled “letting
    them know that [he] was home [from prison] and that they had
    [his] music.” But he also “didn’t know what to do.” And so, he took
    no further action before returning to prison in 2012 to serve an-
    other sentence, which he completed in the fall of 2015.
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    6                      Opinion of the Court                21-13232
    Before Nealy returned to prison, litigation over the rights to
    the works ensued between Crane’s companies, Atlantic, Artist,
    Warner, Butler, and 321. But Nealy was not a party to this litigation
    and contends he did not learn of it until after serving his second
    prison sentence. Once he returned to prison, Nealy again did not
    have any involvement in the music industry.
    Nealy alleges that he did not know and should not have rea-
    sonably known about the defendants’ violations of his ownership
    rights until sometime around the beginning of 2016. After Nealy
    finished serving his second sentence, a former MSI associate told
    Nealy about the litigation and Butler’s purported transfers of the
    rights to the musical works in January 2016. And then nearly three
    years later, on December 28, 2018, MSI and Nealy finally filed this
    lawsuit.
    MSI and Nealy alleged that Atlantic, Artist, and Warner in-
    fringed their copyrights to several music works in violation of 
    17 U.S.C. § 501
    . MSI and Nealy sought relief for infringement they al-
    leged occurred as early as 2008—ten years before they filed this
    lawsuit. The parties entered a joint-pretrial stipulation in which
    they agreed “that this case presents an ‘ownership dispute’ within
    the meaning of the statute of limitations for copyright claims.” Af-
    ter discovery, the defendants moved for summary judgment on all
    claims, which the district court granted in part and denied in part.
    One issue the district court addressed at summary judgment
    was the timeliness of MSI and Nealy’s claims. A three-year statute
    of limitations governs claims under the Copyright Act, which runs
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    21-13232                Opinion of the Court                          7
    from the time the claim accrues. 
    17 U.S.C. § 507
    (b). Because the
    parties agreed that the only disputed substantive issue relating to
    MSI and Nealy’s claims was whether MSI and Nealy owned the
    copyrights, the district court ruled that their claims accrued “when
    [MSI and Nealy] knew or should have known that [the defendants]
    were challenging their ownership to the [works].” Determining
    that a genuine dispute of material fact existed about when accrual
    occurred, the district court denied summary judgment for the de-
    fendants on statute of limitations grounds.
    In a separate order, the district court certified for interlocu-
    tory appeal under 
    28 U.S.C. § 1292
    (b) the question whether “dam-
    ages in this copyright action are limited to the three-year lookback
    period as calculated from the date of the filing of the Complaint
    pursuant to the Copyright Act and Petrella.” MSI and Nealy timely
    filed a petition to appeal from the certified order, which we
    granted, resulting in this interlocutory appeal.
    Nealy and MSI also attempted to appeal from the district
    court’s partial final judgment in favor of Atlantic, but we dismissed
    that appeal for lack of jurisdiction. We also exercised our discretion
    under Section 1292(b) to limit the issues in this appeal to the district
    court’s certified question. It is to that question that we now turn.
    II.
    We review legal questions, including the interpretation of
    federal statutes such as the Copyright Act and its statute of
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    8                        Opinion of the Court                    21-13232
    limitations, de novo. See Stansell v. Revolutionary Armed Forces
    of Colom., 
    704 F.3d 910
    , 914 (11th Cir. 2013).
    III.
    The Copyright Act’s statute of limitations provides that
    “[n]o civil action shall be maintained . . . unless it is commenced
    within three years after the claim accrued.” 
    17 U.S.C. § 507
    (b). Un-
    der our precedent, where the “gravamen” of a copyright claim is
    ownership, the discovery rule dictates when a copyright plaintiff’s
    claim accrues. Webster v. Dean Guitars, 
    955 F.3d 1270
    , 1276 (11th
    Cir. 2020). Under the discovery rule, a copyright ownership claim
    accrues, and therefore the limitations period starts, “when the
    plaintiff learns, or should as a reasonable person have learned, that
    the defendant was violating his ownership rights.” 
    Id.
    The question in this appeal is whether the Copyright Act’s
    statute of limitations, 
    17 U.S.C. § 507
    (b), precludes a copyright
    plaintiff from recovering damages for harms occurring more than
    three years before the plaintiff filed suit, even if the plaintiff’s suit is
    timely under our discovery rule. Our discussion proceeds in two
    parts. First, we briefly confirm that the discovery rule governs the
    timeliness of MSI and Nealy’s claims. Second, assuming MSI and
    Nealy’s claims are timely, we evaluate the Copyright Act and the
    Supreme Court’s decision in Petrella to determine whether the
    plaintiffs may recover damages for infringement that occurred
    more than three years before they filed this lawsuit.
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    21-13232                Opinion of the Court                         9
    A.
    We start with the timeliness of the plaintiffs’ claims. The
    copyright statute of limitations runs from the day that a claim “ac-
    crues.” And there are two recognized rules for determining that
    date: the discovery rule and the injury rule. Under the discovery
    rule, a claim “accrues when the plaintiff learns, or should as a rea-
    sonable person have learned, that the defendant was violating his”
    rights. Webster, 955 F.3d at 1276. These kinds of claims can only
    accrue one time. Id. Conversely, under the injury rule, a copyright
    plaintiff’s claim accrues when the harm, that is, the infringement,
    occurs, no matter when the plaintiff learns of it. Petrella, 
    572 U.S. at 670
    . But, attendant to the injury rule is the separate-accrual rule,
    which means that a new copyright claim accrues with each discrete
    infringement. 
    Id. at 671-72
    .
    Under our precedent, where the “gravamen” of a copyright
    claim is ownership, a plaintiff’s claim accrues when he knew or
    should have known about the infringement. Webster, 955 F.3d at
    1276. The gravamen of a copyright claim is ownership if ownership
    of the copyright is the only disputed issue. Id. For example, in Web-
    ster, the defendant conceded that it used a copyright without the
    plaintiff’s permission. Id. But the defendant argued that it had a li-
    cense from a third party who owned the copyright instead of the
    plaintiff. Id. Accordingly, the plaintiff’s claim was an ownership
    claim because the only disputed issue was whether the plaintiff or
    the third party owned the copyright. Id. And so, the discovery rule
    governed the timeliness of the plaintiff’s claim. Id.
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    10                     Opinion of the Court                21-13232
    We have little difficulty concluding that the discovery rule
    governs the timeliness of MSI and Nealy’s claims in this case. The
    parties entered a joint-pretrial stipulation in which they agreed
    “that this case presents an ‘ownership dispute’ within the meaning
    of the statute of limitations for copyright claims.” And the dispute
    in this case is materially indistinguishable from Webster for this
    purpose. The defendants concede that if MSI and Nealy prove that
    they own the copyrights to the works, the only remaining issue in
    the case would be damages because the defendants’ use of the
    works would have infringed MSI and Nealy’s copyrights. The de-
    fendants also contend, like the Webster defendant, that they are
    not liable because a third party owns the copyrights and licensed
    them to the defendants. Accordingly, Webster controls, and the
    discovery rule governs the timeliness of MSI and Nealy’s claims.
    The district court applied the discovery rule and concluded
    that there was a genuine issue of fact about when the plaintiffs
    knew or should have known about their claims. We will assume
    for the purposes of answering the district court’s certified question
    that the district court’s summary judgment ruling on this point was
    correct. And so, assuming the plaintiffs’ claims are timely under the
    discovery rule, we turn to the question whether the plaintiffs may
    recover retrospective relief for infringement that occurred more
    than three years before they filed this lawsuit.
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    21-13232                 Opinion of the Court                          11
    B.
    The defendants rely on the Supreme Court’s decision in Pet-
    rella to support their contention that MSI and Nealy may not re-
    cover for infringement that occurred more than three years before
    they filed this suit. In Petrella, the Supreme Court held that the eq-
    uitable doctrine of laches does not bar copyright claims that are
    timely within the three-year limitations period because Section
    507(b) “itself takes account of delay.” Petrella, 
    572 U.S. at 670-72, 677
    . The Court identified several reasons that it was unnecessary
    to apply the doctrine of laches to copyright claims. One of those
    reasons, the Court said, was that “Section 507(b) . . . bars relief of
    any kind for conduct occurring prior to the three-year limitations
    period.” 
    Id. at 667
    . The Court explained that, by dint of the statute
    of limitations, retrospective relief is available to a copyright plaintiff
    “running only three years back from the date the complaint was
    filed.” 
    Id. at 672
    .
    The circuits are split on the meaning of Petrella. The Second
    Circuit has held that, even under the discovery rule, a copyright
    plaintiff may not recover for infringement occurring more than
    three years before the plaintiff filed suit. Sohm, 959 F.3d at 49-50.
    The Second Circuit recognized that its ruling undermines the dis-
    covery rule: a copyright plaintiff could have a timely claim under
    the discovery rule but no available relief. But it felt itself bound by
    the Court’s statements in Petrella. More recently, the Ninth Circuit
    split with the Second Circuit and held that Petrella does not mean
    that a plaintiff cannot recover for infringement that occurred more
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    12                      Opinion of the Court                 21-13232
    than three years before the filing of an otherwise timely suit under
    the discovery rule. Starz Ent., 39 F.4th at 1242-44. The court rea-
    soned that an absolute three-year bar on damages “would eviscer-
    ate the discovery rule.” Id. at 1244. And the court explained that
    reading Petrella to impose such a rule would mean that the Petrella
    Court ignored the plain text of Section 507(b), which “limits civil
    actions to ‘three years after the claim accrued’” and says nothing
    about remedies. Id. at 1245 (quoting 
    17 U.S.C. § 507
    (b)).
    We agree with the Ninth Circuit and hold that a copyright
    plaintiff may recover retrospective relief for infringement occur-
    ring more than three years before the lawsuit’s filing so long as the
    plaintiff’s claim is timely under the discovery rule. This is so for
    two reasons, which we discuss in turn. First, we believe Petrella’s
    statements about the availability of relief are directed to the way
    the statute of limitations works when claims accrue under the in-
    jury rule, not the discovery rule. Second, the text of the Copyright
    Act does not place a time limit on remedies for an otherwise timely
    claim.
    1.
    The defendants’ argument begins and ends with Petrella.
    Specifically, the defendants invoke the following quotes. The Su-
    preme Court said that “Section 507(b) . . . bars relief of any kind for
    conduct occurring prior to the three-year limitations period.” 
    572 U.S. at 667
    . And the Court said that the import of the statute of
    limitations is that a copyright plaintiff can get damages “running
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    21-13232                Opinion of the Court                        13
    only three years back from the date the complaint was filed.” 
    Id. at 672
    . Because the statute of limitations already protects defendants
    from stale claims, the Court held that it was unnecessary to apply
    the equitable doctrine of laches.
    We do not read these snippets from Petrella to create a
    three-year lookback period or a damages cap. We cannot read a
    court’s opinion like we would read words in a statute. CBS, Inc. v.
    FCC, 
    453 U.S. 367
    , 385 (1981) (quoting Reiter v. Sonotone Corp.,
    
    442 U.S. 330
    , 341 (1979)); United States v. Garges, 
    46 F.4th 682
    , 685
    (8th Cir. 2022); Romo v. Largen, 
    723 F.3d 670
    , 678 (6th Cir. 2013)
    (Sutton, J., concurring). Instead, when interpreting and applying
    words in a judicial opinion, we must consider the context, such as
    the question the court was answering, the parties’ arguments, and
    facts of the case. See Reiter, 
    442 U.S. at 341
     (examining the lan-
    guage of a judicial opinion “in context”). Reading these statements
    in context, we are confident that the Court did not cap copyright
    damages for claims that are timely under the discovery rule.
    For starters, Petrella did not present the question whether a
    plaintiff could recover for harm that occurred more than three
    years before the plaintiff filed suit if his claim was otherwise timely
    under the discovery rule. The question in Petrella was “whether
    the equitable defense of laches (unreasonable, prejudicial delay in
    commencing suit) may bar relief on a copyright infringement claim
    brought within § 507(b)’s three-year limitations period.” Petrella,
    
    572 U.S. at 667
    . The plaintiff in Petrella “sought no relief for con-
    duct occurring outside § 507(b)’s three-year limitations period.”
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    14                     Opinion of the Court                 21-13232
    
    572 U.S. at 668
    . But the defendant nevertheless argued that laches
    barred the plaintiff’s claim because it was unreasonable and preju-
    dicial to the defendant to allow the plaintiff to sue eighteen years
    after the defendant allegedly began infringing the plaintiff’s copy-
    right. 
    Id. at 674-75
    . The Court rejected the defendant’s argument
    and held that laches could not bar a copyright claim that was oth-
    erwise timely under the statute of limitations. 
    Id. at 667
    .
    In passing on the question presented, the Court reasoned
    that the defense of laches was unnecessary because the statute of
    limitations already protects putative defendants from stale claims.
    But the Court made its statements in the context of a claim that
    was timely because of the injury rule. And, as we have already ex-
    plained, the plaintiffs’ claims in this case are timely because of the
    discovery rule, not the injury rule. This distinction is important for
    two reasons.
    First, the Court’s statements in Petrella merely describe the
    operation of the injury rule on the facts of that case and others like
    it. The Court in Petrella explained that, under the injury rule, sep-
    arate claims accrue with each new injury. 
    Id. at 670-72
    . The injury
    rule and separate-accrual rule mean, as the Court said, that a sepa-
    rate copyright claim accrues “[e]ach time an infringing work is re-
    produced or distributed.” 
    Id. at 671
    . Because the claim accrues “at
    the time the wrong occurs,” the statute of limitations protects pu-
    tative defendants from stale claims by giving a copyright owner
    only three years from that date to sue for the infringement. Id.; see
    
    17 U.S.C. § 507
    (b). But after those three years pass, the owner no
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    21-13232               Opinion of the Court                        15
    longer has a timely claim to sue for that act of infringement under
    the injury rule. That’s the way the injury accrual rule works—it
    precludes a plaintiff’s recovery for any harms that occur earlier
    than three years before the plaintiff files suit.
    The discovery rule affords defendants a different kind of pro-
    tection from stale claims. Under the discovery rule, it is possible to
    have a timely claim for an infringement that occurred more than
    three years before the lawsuit was filed. On the other hand, it also
    means that a claim accrues only one time: “when a copyright own-
    ership claim is time-barred, ‘all those claims logically following
    therefrom should be barred, including infringement claims.’” Web-
    ster, 955 F.3d at 1277 (quoting Calhoun v. Lillenas Publ’g, 
    298 F.3d 1228
    , 1236 (11th Cir. 2002) (Birch, J., concurring)). Had the discov-
    ery rule applied in Petrella, the plaintiff’s claims—based on infring-
    ing conduct that began almost two decades earlier—may well have
    been untimely.
    In any event, the Court’s explanation of how the injury rule
    protects defendants from stale claims says nothing about damages
    when a claim is timely under the discovery rule. If the Court in
    Petrella had been addressing a claim that was timely under the dis-
    covery rule, it would have said different things about how that
    claim accrued and the way the statute of limitations affected the
    availability of damages. For example, it would have explained that
    the statute of limitations protects defendants from stale claims be-
    cause all claims for damages are cut off three years from when the
    putative plaintiff discovers his claim. But the Court’s bottom line
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    16                     Opinion of the Court                21-13232
    about laches would have been the same: “in face of a statute of lim-
    itations enacted by Congress, laches cannot be invoked to bar legal
    relief.” Petrella, 
    572 U.S. at 679
    .
    Second, the Court in Petrella expressly addressed the discov-
    ery rule and preserved the question whether the discovery rule
    governs the accrual of copyright claims. The Court recognized that
    nine of our sister circuits apply the discovery rule to the kind of
    ordinary infringement claims that were at issue in Petrella. See 
    id.
    at 670 n.4. The Court noted that it “[has] not passed on the ques-
    tion” of the discovery rule’s propriety and reserved that question
    for a future case. 
    Id.
    It would be inconsistent with Petrella’s preservation of the
    discovery rule to read Petrella to bar damages for claims that are
    timely under the discovery rule. See Petrella, 
    572 U.S. at
    670 n.4.
    As the Ninth Circuit explained, “[t]here is no reason for a discovery
    rule if damages for infringing acts of which the copyright owner
    reasonably becomes aware years later are unavailable.” Starz Ent.,
    39 F.4th at 1244. Unless a plaintiff may recover damages for the
    infringement, the discovery and injury rules lead to the same re-
    sult—retrospective relief only for harms occurring in the three
    years preceding the filing of the lawsuit. Because the Supreme
    Court expressly reserved the question of the discovery rule’s pro-
    priety, we cannot say it silently eliminated the discovery rule by
    capping damages for claims that are timely under that rule.
    In response to this concern, the defendants argue that their
    reading of Petrella would allow a copyright plaintiff with a timely
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    21-13232               Opinion of the Court                        17
    claim under the discovery rule to sue for injunctive relief, even if
    retrospective relief is unavailable. See 
    17 U.S.C. § 502
    . But the de-
    fendants have no explanation for why the statute of limitations
    would bar damages, but not other kinds of relief. Moreover, if a
    plaintiff did not suffer damages in the three years preceding the
    lawsuit, there is likely no basis for a plaintiff to obtain injunctive
    relief. The harm is not ongoing and is unlikely to resume if it ceased
    long ago. And, although a copyright plaintiff may elect to recover
    statutory damages instead of actual damages and profits, 
    id.
     §
    504(c), those statutory damages would also be unavailable under
    the defendants’ reading of Petrella because they remedy harm re-
    sulting from past violations of the Copyright Act and are therefore
    retrospective relief. See Edelman v. Jordan, 
    415 U.S. 651
    , 668 (1974)
    (explaining retrospective relief includes monetary compensation
    for “a past breach of a legal duty”). There is no escaping the con-
    clusion that the defendants’ position would gut the discovery rule
    by eliminating any meaningful relief for timely claims, even though
    the Court expressly left open whether a discovery rule applies to
    copyright claims.
    In short, the defendants’ reading of Petrella ignores the ques-
    tion presented, conflates the Court’s discussion of claim accrual un-
    der the injury rule with the availability of damages under the dis-
    covery rule, and cannot be squared with the Court’s express preser-
    vation of the discovery rule. For these reasons, we believe the Su-
    preme Court in Petrella did not bar copyright damages in actions
    that are timely under the discovery rule.
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    18                      Opinion of the Court                  21-13232
    2.
    Having established that Petrella itself does not impose a sep-
    arate bar on retrospective relief for an otherwise timely copyright
    claim, we turn to the Copyright Act’s text to see if it supports such
    a bar. We conclude it does not.
    The plain text of the Copyright Act’s statute of limitations
    does not limit the remedies available on an otherwise timely claim.
    The statute of limitations provides that “[n]o civil action shall be
    maintained under the provisions of this title unless it is commenced
    within three years after the claim accrued.” 
    17 U.S.C. § 507
    (b). A
    civil action is a proceeding “brought to enforce, redress, or protect
    a private right or civil right.” Action, Black’s Law Dictionary (11th
    ed. 2019). A remedy, on the other hand, is “[t]he means of enforc-
    ing a right or preventing or redressing a wrong.” Remedy, Black’s
    Law Dictionary (11th ed. 2019). A plaintiff cannot obtain a remedy
    without a timely civil action. But, if a plaintiff succeeds at maintain-
    ing a timely civil action, the inapplicable time-bar has little bearing
    on what a plaintiff may obtain as a remedy.
    The Copyright Act’s damages provisions do not place a
    three-year limitation on the recovery of damages for past infringe-
    ment. For a separate damages bar to exist, these damages provi-
    sions would have to limit a plaintiff’s recovery to something less
    than the harm caused by the infringement for which a defendant is
    liable. But they do not. Instead, the Copyright Act makes “an in-
    fringer of a copyright” liable for “the copyright owner’s actual
    USCA11 Case: 21-13232      Document: 54-1      Date Filed: 02/27/2023      Page: 19 of 19
    21-13232                Opinion of the Court                         19
    damages and any additional profits of the infringer.” 
    17 U.S.C. § 504
    (a)(1). “Actual damages” are defined as “the actual damages suf-
    fered by [the plaintiff] as a result of the infringement.” 
    Id.
     § 504(b).
    There is no bar to damages in a timely action.
    Given that the plain text of the Copyright Act does not sup-
    port the existence of a separate damages bar for an otherwise
    timely copyright claim, we hold that a copyright plaintiff with a
    timely claim under the discovery rule may recover retrospective
    relief for infringement that occurred more than three years prior to
    the filing of the lawsuit.
    IV.
    The district court certified the question of whether “dam-
    ages in this copyright action are limited to the three-year lookback
    period as calculated from the date of the filing of the Complaint
    pursuant to the Copyright Act and Petrella.” We answer that ques-
    tion in the negative and conclude that where a copyright plaintiff
    has a timely claim for infringement occurring more than three
    years before the filing of the lawsuit, the plaintiff may obtain retro-
    spective relief for that infringement.
    Accordingly, the certified question is ANSWERED.
    

Document Info

Docket Number: 21-13232

Filed Date: 2/27/2023

Precedential Status: Precedential

Modified Date: 2/27/2023