In the
United States Court of Appeals
For the Seventh Circuit
Nos. 08-3810, 09-2213 & 10-1733
S YL JOHNSON, also known as
S YLVESTER T HOMPSON,
Plaintiff-Appellant,
v.
C YPRESS H ILL, et al.,
Defendants-Appellees.
Appeals from the United States District Court
for the Northern District of Illinois, Eastern Division.
Nos. 1:03-cv-09452 & 1:08-cv-07264—Charles R. Norgle, Sr., Judge.
A RGUED F EBRUARY 10, 2011—D ECIDED JUNE 1, 2011
Before M ANION, E VANS, and H AMILTON, Circuit Judges.
E VANS, Circuit Judge. Syl Johnson, an American blues
and soul singer—well known in the 1960s and 1970s
for his exploration of African-American identity and
social problems—wrote a song entitled, “Is It Because
2 Nos. 08-3810, 09-2213 & 10-1733
I’m Black” (the “Song”).1 Twenty-five years later,
Cypress Hill2 , an extremely popular and successful hip-
hop group, released the album, “Black Sunday.” One of
the tracks on “Black Sunday,” titled “Interlude,” 3 plays
a section of Johnson’s Song.
In 2003, Johnson filed suit against Cypress Hill alleging
copyright infringement of the Song. Over four years
into litigation, the district judge granted Cypress Hill’s
motion for summary judgment after concluding that
Johnson failed to prove he held a valid copyright in the
Song. Johnson now appeals.
In 1968, Johnson, working with Glenn Watts and
Jimmy Jones, wrote “Is It Because I’m Black.” In 1969,
Twinight Records released a recorded version of the
Song as a 45-RPM. That same year, the Song reached
number 11 on the R&B charts. In 1972, Johnson re-
recorded the Song. The 1972 recording was never
released in the United States. In 1997, Johnson
applied for and received United States copyright reg-
istration SRU-360-891 for a sound recording compilation.
1
The song is available at: http://www.youtube.com/watch?v=
zKfZYgHm8So (last visited May 17, 2011).
2
The members of Cypress Hill—Lawrence Muggerud, Senen
Reyes, and Louis Freese—are also named defendants. We will
refer to the defendants collectively as Cypress Hill.
3
The track in question is titled, “Interlude” on some copies of
“Black Sunday” and “Lock Down” on others. The tracks are
identical. “Interlude” is available at: http://www.youtube.com/
watch?v=aADH4148iQo (last visited May 17, 2011).
Nos. 08-3810, 09-2213 & 10-1733 3
Johnson believed that he included the 1972 recording of
the Song in his submission, but he did not. Therefore, the
Song was not covered by a valid federal copyright. In
June 2003, Watts filed a Form PA composition copy-
right registration on the words and music of the Song,
listing Johnson and Jones as co-authors. The Copyright
Office assigned it registration number PA 1-192-702.
In 1993, Cypress Hill released its “Black Sunday” album.
The song in question in this case, “Interlude,” is a 77-
second song in the middle of the 14-track album. “Inter-
lude” includes 2.5 seconds of Johnson’s Song “looped”
for the entire 77 seconds. Cypress Hill admits that it
failed to obtain permission from Johnson to use the Song.4
In 2003, Johnson—after listening to “Interlude” and
deciding that his Song was used—filed a pro se com-
plaint against Cypress Hill alleging copyright infringe-
ment and a state law fraud claim. Four months
later, after obtaining counsel, Johnson filed an amended
complaint asserting a single claim, infringement of
the sound recording copyright SRU-360-891, 5 asking for
4
In March 2004, Cypress Hill did reach an agreement with
Sunlight Records, Inc. (owned by Peter Wright, the co-owner
of Twinight Records) which claimed that it was the holder of
all rights in the Song. The deal for the license was roughly
$25,000 and released Cypress Hill and its licensees from all
past, present, and future claims related to Cypress Hill’s use
of the Song in “Interlude.”
5
A “sound recording” copyright protects rights in a specific
recording of a musical work. A sound recording copyright is
(continued...)
4 Nos. 08-3810, 09-2213 & 10-1733
a staggering $29,000,000 in relief. Johnson made this
claim under the mistaken belief that his Song was
covered by the copyright. At no point during the next
four years did he check to make sure it was actually
covered.
In March 2006, Peter Wright, an owner of Twinight
Records, filed a declaration stating that the SRU-360-891
registration did not include a recording of the Song. In
June 2006, Johnson’s co-writer, Watts, filed a lawsuit
against Cypress Hill claiming infringement of copyrights
PA 1-192-702 and SRU-360-891 (the SRU-360-891 claim
was later dropped). In October 2007, Lawrence Mug-
gerud, the member of Cypress Hill who created “Inter-
lude,” testified that he came across the Song on the 1969
45-RPM single released by Twinight Records. This last
event is particularly crucial to Johnson’s claim because,
under the Copyright Act, sound recordings fixed before
February 15, 1972 are not subject to copyright protection,
but may be protected by state law. See 17 U.S.C. § 301(c).
Once Johnson affirmatively knew that Cypress Hill
used the 1969 version, there was no situation under
which his sound recording copyright infringement
claim could succeed.
Meanwhile, the parties initiated and proceeded with
discovery on the allegations in Johnson’s amended com-
5
(...continued)
distinct from a “composition” copyright, which protects
rights in the underlying work, i.e., the music and, if applicable,
lyrics. 17 U.S.C. § 102(a)(2), (7).
Nos. 08-3810, 09-2213 & 10-1733 5
plaint, namely the alleged copyright infringement of SRU-
360-891. At the close of long and protracted dis-
covery proceedings, and in accordance with the district
judge’s order, Cypress Hill filed a motion for sum-
mary judgment in February 2008. Cypress Hill argued
that Johnson could not prove infringement of copyright
SRU-360-891 because: (1) there is no copyright protec-
tion for a 1969 sound recording; and (2) the compila-
tion submitted for the SRU-360-891 copyright did not
include any version of the Song.
Johnson responded, in his brief opposing summary
judgment, by arguing—for the first time—that he was
entitled to relief under common law misappropriation
and infringement of the composition copyright PA 1-192-
702. He conceded that his 1969 recording of the Song
cannot obtain a sound recording copyright.
In May 2008, Johnson filed a motion for leave to file a
second amended complaint. The proposed amendment
redacted Johnson’s claim for infringement of his sound
recording copyright and substituted claims for common
law misappropriation and infringement of composition
copyright PA 1-192-702. The judge denied Johnson’s
motion, finding that leave to amend was not warranted
due to Johnson’s undue delay and the “substantial preju-
dice” to Cypress Hill that would result from allowing
an amendment four years into litigation and after the
close of discovery. The judge then granted Cypress
Hill’s motion for summary judgment, finding that the
compilation of songs Johnson submitted to the Copy-
right Office did not include a recording of the Song and,
6 Nos. 08-3810, 09-2213 & 10-1733
therefore, Johnson had “failed entirely to show owner-
ship of a valid copyright in the 1969 sound recording.”
Johnson filed a motion under Rule 60(b) of the Federal
Rules of Civil Procedure requesting that the court vacate
its summary judgment order and enter an order dis-
missing the case for lack of subject-matter jurisdiction
pursuant to Fed. R. Civ. P. 12(h)(3). Johnson argued
that because he never had a copyright the district court
did not have subject-matter jurisdiction over the action.
The court denied his motion.
Cypress Hill then filed a motion for attorney’s fees and
costs pursuant to 17 U.S.C. § 505, arguing that Johnson
knew or should have known from the outset of the litiga-
tion that he had no valid claim for infringement of copy-
right SRU-360-891 because no version of the Song was
included in his registered compilation, and the 1969
recording could not be copyrighted. Johnson responded
by maintaining that the action should have been dis-
missed for lack of subject-matter jurisdiction, and there-
fore 28 U.S.C. § 1919, which provides for an award of
“just costs,” should govern the award. The court
granted Cypress Hill’s motion for attorney’s fees and
costs, finding that Johnson’s amended complaint was
“legally baseless” as he could not demonstrate owner-
ship of a valid copyright in the Song. The court reduced
Cypress Hill’s requested attorney’s fees by 15%, and
awarded $321,995.25 in attorney’s fees and $10,620.53
in costs.
In October 2008, Johnson filed a new action against
Cypress Hill in the Circuit Court of Cook County (Johnson
Nos. 08-3810, 09-2213 & 10-1733 7
II), reasserting the state law misappropriation claim he
had attempted to add in Johnson I. Cypress Hill re-
moved the action to federal court based on diversity
jurisdiction. After removal, Johnson moved to file
an amended complaint—a claim for infringement of
composition copyright PA 1-192-702. At this point, John-
son’s claim was identical to the claim in the amended
complaint he tried to file without success in the original
case. Accordingly, Cypress Hill moved to dismiss the
amended complaint as barred by res judicata. The judge
granted the motion to dismiss with prejudice, holding
that the Johnson II claims were barred by res judicata.
On appeal, Johnson argues that: (1) the district court
abused its discretion in denying his motion for leave
to amend; (2) the court lacked subject-matter jurisdic-
tion over the action and therefore was without power
to grant summary judgment on the merits; (3) the court
erred in granting attorneys’ fees pursuant to 17 U.S.C.
§ 505; and (4) the court erred in finding Johnson’s
amended complaint in Johnson II was barred by res judicata.
We begin with Johnson’s primary claim; that the
judge abused his discretion in denying his motion for
leave to amend. We review a district judge’s denial of a
motion for leave to amend for abuse of discretion.
Trustmark Insurance Co. v. General & Cologne Life Re of
America, 424 F.3d 542, 553 (7th Cir. 2005). Although Fed.
R. Civ. P. 15(a) provides that leave to amend “ ‘shall be
freely given when justice so requires,’ [it] is not to be
automatically granted.” Johnson v. Methodist Medical
Center of Ill., 10 F.3d 1300, 1303 (7th Cir. 1993). “[District]
8 Nos. 08-3810, 09-2213 & 10-1733
courts have broad discretion to deny leave to amend
where there is undue delay, bad faith, dilatory motive,
repeated failure to cure deficiencies, undue prejudice to
the defendants, or where the amendment would be
futile.” Hukic v. Aurora Loan Services, 588 F.3d 420, 432
(7th Cir. 2009) (internal citation omitted). And while
delay on its own is usually not reason enough for a court
to deny a motion to amend, Dubicz v. Commonwealth
Edison Co., 377 F.3d 787, 792-93 (7th Cir. 2004), the “longer
the delay, the greater the presumption against granting
leave to amend.” King v. Cooke, 26 F.3d 720, 723 (7th Cir.
1994) (internal citation omitted).
The district judge denied the motion, finding that John-
son’s four-year wait to amend his complaint, after dis-
covery closed and Cypress Hill filed its motion for sum-
mary judgment, was undue delay. Johnson argues in
response that he made his motion shortly after learning
that the Song Cypress Hill used was the 1969 version,
not the 1972 version. But Johnson’s argument fails for
several reasons.
First, as the judge noted, in March, 2006, Johnson was
on notice that his claim was deficient when Wright (the
owner of Twinight Records) stated in his declaration
that the tape Johnson submitted to the Copyright Office
did not include a recording of the Song. Second, in
May 2007, Johnson’s co-author, Watts, withdrew the
infringement claim for sound recording copyright SRU-
360-891 from his complaint, and left only his claim under
composition copyright PA 1-192-702. Third, in October
2007, Johnson learned from Muggerud’s deposition
Nos. 08-3810, 09-2213 & 10-1733 9
testimony that his claim under SRU-360-891 was base-
less. Yet Johnson did not file a motion to amend his
complaint until May 2008, seven months after Muggerud’s
deposition revealed that Cypress Hill used the 1969
version of the Song (which could not be copyrighted),
and years after he was on notice that the SRU-360-891
copyright did not cover the Song. Accordingly, the judge
did not abuse his discretion when he denied Johnson’s
motion to amend the complaint. See, e.g., Methodist, 10
F.3d at 1304 (affirming denial of motion to amend when
district judge found that even if plaintiff’s proposed
amendment were based on information learned during
depositions, plaintiff did not move until four or five
months later); Feldman v. American Memorial Life Insurance
Co., 196 F.3d 783, 793 (7th Cir. 1999) (affirming denial
of motion to amend based on five-month delay after
discovering the facts that allegedly necessitated the
amendment); Perrian v. O’Grady, 958 F.2d 192, 195 (7th
Cir. 1992) (affirming denial of motion to amend when
plaintiff “ha[d] not explained why he waited [three and
a half months]” to add additional defendants).
Moreover, the judge found that Johnson’s new state
law claims for misappropriation would cause Cypress
Hill substantial prejudice. Johnson argues, however, that
the second amended complaint was merely clarifying
the legal basis on which he was relying. Again, Johnson
misstates the facts. Johnson’s amended complaint
sought to drop his claim of sound recording copyright
infringement of SRU-360-891 and introduce two new
claims: a claim for state law misappropriation, and a
claim for infringement of composition copyright PA 1-192-
10 Nos. 08-3810, 09-2213 & 10-1733
702. Discovery had long been closed, and Cypress Hill
had filed a motion for summary judgment. Allowing
Johnson to amend his complaint would mean additional
discovery focused on whether misappropriation had
occurred under Illinois state law. See Board of Trade of the
City of Chicago v. Dow Jones & Co., Inc., 456 N.E.2d 84, 88-
89 (Ill. 1983). Thus, in addition to the lengthy delay,
allowing Johnson to change the course of the litigation
four years into the case would be prejudicial to Cypress
Hill. See Methodist, 10 F.3d at 1302-04.
Furthermore, “[t]here must be a point at which a
plaintiff makes a commitment to the theory of [his] case.”
Methodist, 10 F.3d at 1304. Johnson’s request to change
his claims on the eve of summary judgment is exactly
the sort of switcheroo we have counseled against. See, e.g.,
Feldman, 196 F.3d at 793 (finding that the prejudice that
would result from amendment that would have added a
new claim “well after the close of discovery and on the
eve of summary judgment proceedings” was so ap-
parent that the district court was not required to
articulate the basis for its decision).
Johnson’s second claim is that the district judge did
not have the authority to enter summary judgment
because his failure to register a copyright deprived the
court of subject-matter jurisdiction and, therefore,
the action should have been dismissed pursuant to Fed. R.
Civ. P. 12(h)(3). We review questions of subject-matter
jurisdiction de novo. Schur v. L.A. Weight Loss Centers, Inc.,
577 F.3d 752, 758 (7th Cir. 2009).
Nos. 08-3810, 09-2213 & 10-1733 11
As Cypress Hill notes, and as Johnson acknowledged
at oral argument, this claim fails. In Reed Elsevier, Inc. v.
Muchnick, 130 S.Ct. 1237 (2010), the Court held that the
copyright registration requirement of 17 U.S.C. § 411(a)
“is a precondition to filing a claim that does not restrict
a federal court’s subject-matter jurisdiction.” Id. at 1241.
Therefore, Johnson’s argument that the district court
lacked subject-matter jurisdiction over his claim fails,
as it is foreclosed by Reed Elsevier. The court had juris-
diction and properly granted Cypress Hill’s motion to
dismiss, as Johnson failed to prove a valid copyright in
the Song.
Johnson’s third argument is that the district court
improperly awarded attorney’s fees under 17 U.S.C. § 505.
Section 505 of the Copyright Act allows a district court
to award both costs and attorney’s fees to a “prevailing
party” in a copyright infringement action. See also,
Woodhaven Homes & Realty, Inc. v. Hotz, 396 F.3d 822,
824 (7th Cir. 2005) (quoting Assessment Technologies of WI,
LLC v. WIREdata, Inc., 361 F.3d 434, 437 (7th Cir. 2004))
(“When the prevailing party is the defendant, who by
definition receives not a small award but no award, the
presumption in favor of awarding fees is very strong”).
Johnson argues that the judge incorrectly granted
fees under Section 505 because the court did not have
subject-matter jurisdiction. As we just noted, however,
under Reed Elsevier the court had subject-matter juris-
diction and, therefore, correctly applied Section 505.
Thus, the only question is whether the judge properly
awarded fees.
12 Nos. 08-3810, 09-2213 & 10-1733
The judge found that because it was undisputed
that Cypress Hill was the prevailing party, and that John-
son’s infringement claim was legally baseless—he did
not have a valid copyright in the Song—he could not
overcome the “very strong” presumption to grant rea-
sonable costs and attorney’s fees. We agree. Johnson
maintained his claim under SRU-360-891 for four years
despite clear notice that the claim was frivolous and
objectively unreasonable, as the Song was not covered
under the copyright and, moreover, was not eligible
for copyright protection. See Woodhaven, 396 F.3d at 824.
He has done nothing to rebut the presumption. Accord-
ingly, the judge properly awarded costs and attorney’s
fees to Cypress Hill under Section 505.
Johnson’s final claim is that the judge improperly held
that the Johnson II amended complaint was barred by res
judicata. We review the district court’s dismissal of a
lawsuit on res judicata grounds de novo. Tartt v. Northwest
Community Hospital, 453 F.3d 817, 822 (7th Cir. 2006). Res
judicata prohibits parties “from re-litigating issues that
were or could have been raised in” a previous action
in which there was final judgment on the merits. High-
way J Citizens Group v. U.S. Dep’t of Transportation, 456
F.3d 734, 741 (7th Cir. 2006). Essentially, res judicata em-
bodies the principle that “claims ‘based on the same, or
nearly the same, factual allegations’ must be joined,”
Roboserve, Inc. v. Kato Kagaku Co., Ltd., 121 F.3d 1027, 1034
(7th Cir. 1997), and a prior judgment can “foreclos[e]
litigation of a matter that never has been litigated,
because of a determination that it should have been
Nos. 08-3810, 09-2213 & 10-1733 13
advanced in an earlier suit.” Migra v. Warren City School
District Board of Education, 465 U.S. 75, 77 n.1 (1984).
For res judicata to apply, three factors are necessary:
“(1) an identity of the parties or their privies; (2) an
identity of the cause of action; and (3) a final judgment on
the merits [in the earlier action].” Prochotsky v. Baker &
McKenzie, 966 F.2d 333, 334 (7th Cir. 1992). A cause of
action means “ ‘a single core of operative facts’ which
give rise to a remedy.” Golden v. Barenborg, 53 F.3d 866,
869 (7th Cir. 1995) (internal citation omitted).
Johnson concedes that the same parties are involved in
both actions, but argues that the claims are not identical
and that there was no final judgment on the merits in
the first action. Johnson’s argument fails on both points.
First, Johnson asserts that the claims are not the same
because the original action was based on copyright in-
fringement, whereas Johnson II is based on state claims of
unfair competition and misappropriation. But, as Cypress
Hill correctly notes, “[t]wo claims are one for purposes
of res judicata if they are based on the same, or nearly
the same, factual allegations.” Tartt, 453 F.3d at 822 (in-
ternal citation omitted); see also Bethesda Lutheran Homes
& Services, Inc. v. Born, 238 F.3d 853, 857 (7th Cir. 2001)
(“[F]or purposes of res judicata a claim is not an argu-
ment or a ground but the events claimed to give rise to
a right to a legal remedy”). Here, the facts in both claims
are unquestionably identical. Johnson’s second argu-
ment—that the original case was not decided on the
merits because the action should have been dismissed
for lack of subject-matter jurisdiction—fails under Reed
14 Nos. 08-3810, 09-2213 & 10-1733
Elsevier. Thus, the judge correctly granted Cypress
Hill’s motion to dismiss Johnson II, finding the amended
complaint barred by res judicata.
For these reasons, the judgment of the district court
is A FFIRMED.
6-1-11