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I searched Lexis and think you're probably mistaken. There's no such law but also no such case.

I agree, the GP is thinking of this news story: http://www.billboard.com/news/pearl-jam-r-e-m-trent-reznor-c...

I don't think a lawsuit was ever filed. At the time there was speculations as to whether it was considered a public performance and whether it was considered US jurisdiction for copyright.

"Any State, any instrumentality of a State, and any officer or employee of a State or instrumentality of a State acting in his or her official capacity, shall not be immune [...] for a violation of any of the exclusive rights of a copyright owner" 17 U.S.C. § 511 http://www.copyright.gov/title17/92chap5.html#511

No such law, in fact explicitly no sovereign immunity.

I think it's a more general principle of "if we say it's a matter of national security we can do whatever we want"

If you don't agree you are perfectly at liberty to be held indefinitely without trial and be tortured.

I don't remember the latin term but it's approximately "look what a big stick we have"

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