Firm News

Wiggin and Dana Represents Amici in Landmark Copyright Case Upholding the Discovery Rule, Ensuring Critical Protections for Rightsholders
On July 14, 2022, the Ninth Circuit Court of Appeals issued a highly anticipated copyright ruling in Starz Entertainment, LLC v. MGM Domestic Television Distribution LLC, Case No. 21-55379. In the decision, the Ninth Circuit upheld the “discovery rule” for purposes of analyzing the timeliness of infringement claims brought under the Copyright Act. In doing so, the Court rejected MGM’s argument that a literal reading of portions of the Supreme Court’s 2014 decision in Petrella v. Metro-Goldwyn-Mayer, Inc., 572 U.S. 663, imposed a strict bar on damages from infringements occurring more than three years before suit. Instead, the Court explained, the discovery rule—which ties accrual of a copyright claim to the date the rightsholder reasonably discovers the infringement, instead of the date the infringement occurred—remains “alive and well” after Petrella. Starz will therefore be permitted to pursue claims and damages based on when it learned about MGM’s alleged infringements, rather than when those infringements occurred.
Wiggin and Dana represented Amici Curiae The Authors Guild Inc., the American Society of Media Photographers, Inc., The Dramatists Guild of America, the Graphic Artists Guild, the Romance Writers of America, the Songwriters Guild of America, Inc., and the Textbook & Academic Authors Association, who filed a brief in support of Starz in the appeal. The decision is an important development for authors and content creators of all formats because, consistent with Supreme Court precedent, it protects their rights against infringing works in a time when they face both increasing infringement and increasing challenges to enforcement. As reported by Reuters, Bloomberg Law and Law360, in upholding the discovery rule, the Ninth Circuit favorably quoted Amici’s brief, agreeing that the discovery rule promotes the purposes of the Copyright Act because, “with the constant evolution of technology, copyright infringement is now ‘easier to commit, harder to detect, and tougher to litigate.’”
Cheryl Davis, General Counsel of The Authors Guild, commented, “We are very pleased with the ruling, which reflects the court’s recognition that authors and other creators often don’t have the time or the ability to monitor the marketplace and locate infringements of their copyrights in a speedy manner. Thanks to the efforts of our extremely able pro bono counsel at Wiggin and Dana, we hope that the court’s decision to uphold the discovery rule will make it a bit easier for creators to litigate their claims of copyright infringement.”
The Ninth Circuit’s decision opens up a split with the Second Circuit, which held in a 2020 case, Sohm v. Scholastic Inc., 959 F.3d 39, that the Supreme Court’s decision in Petrella strictly limited damages to the three-year period before suit, regardless of when the rightsholder discovered or should have discovered the infringement.
Amici were represented on a pro bono basis by Partners Nathan Denning and Benjamin Diessel, and Associate Michael Rondon. Starz was represented by Cravath, Swaine & Moore LLP, while MGM was represented by Gibson, Dunn & Crutcher LLP.
A copy of Amici’s brief, the Ninth Circuit’s decision, and news articles regarding the case are linked below.
To read the brief, click here.
To read the opinion, click here.
To read news articles regarding the decision, click below.
- Reuters, U.S. appeals court okays Starz copyright claims against Amazon’s MGM
- Bloomberg Law, MGM ‘Discovery Rule’ Attack Fails, Boosting Starz Copyright Case
- Law360, Starz Brought MGM Licensing Suit In Time, 9th Circ. Says
- Law.com, Copyright’s Discovery Rule Is Alive and Well, if You Don’t Take the Supreme Court Too Literally
- The Authors Guild, Ninth Circuit Affirms in Favor of Creators in Starz v. MGM Copyright Infringement Suit
Wiggin and Dana LLP is a high-end mid-size firm with more than 150 attorneys in Connecticut, New York, Philadelphia, Washington, DC, and Palm Beach. Founded in 1934 and consistently recognized by Chambers USA, The Legal 500, Benchmark Litigation, and Best Lawyers, among others, Wiggin has become the counsel of choice for some of the nation’s most prominent companies. Our diverse client base includes leading companies in the defense, aerospace, technology, life sciences, pharmaceutical, e-commerce, consumer products, finance, insurance, and manufacturing industries.