Supreme Court rules in favour of SCF on phonogram compensation statute of limitations

The Italian Supreme Court of Cassation has issued a significant ruling on neighbouring rights, clarifying the statute of limitation applicable to the right to equitable remuneration for the use of protected phonograms. With Order no. 5385/2026, the First Civil Section of the Court held that such right is subject to the ordinary ten-year limitation period, rather than the shorter five-year period previously applied by the lower courts.

The dispute arose from proceedings brought by the collecting society SCF against several farmhouses with respect to the payment of equitable remuneration for the communication of phonograms through television and radio sets installed in guests’ rooms. In the earlier stages of the proceedings, the payment obligation had been classified as a periodic obligation, with the result that a shorter limitation period was held to apply. The Supreme Court, however, clarified that equitable remuneration does not entail a periodic obligation, since each act of use of the phonogram constitutes a separate event giving rise to the relevant entitlement to payment.

The ruling also addresses the concept of communication to the public, confirming that the transmission of television and radio content within the rooms of accommodations, including farmhouses, constitutes an act of communication to the public, notwithstanding the private nature of the guest room. This confirmation broadens the scope for collecting management organizations to claim dues from the hospitality industry.

Daniela De Pasquale, partner at Ughi e Nunziante, noted that the decision provides much-needed clarity on an issue that had given rise to interpretative uncertainty for years. She also emphasized that the recognition of a ten-year limitation period strengthens the protection afforded to phonogram producers and ensures greater legal certainty in the relationship between users and rightholders. The decision is expected to have a significant impact on the music industry by extending the period within which collecting societies may seek recovery of outstanding remuneration.

SCF was represented throughout the proceedings by Ughi e Nunziante, with a team led by partner Daniela De Pasquale and senior associate Francesco Santonastaso.