The legendary musician was awarded $9.4 million (£7.6 million) in royalties three years ago after accusing executives at Sony Music and MJJ Productions of trying to take advantage of his age.
Jones claimed the bosses had pulled an accounting trick on him and conned him out of a large royalties cut for his work with the late King of Pop, which included producing his three biggest albums - "Off the Wall", "Thriller", and "Bad".
The defendants challenged the verdict and on Tuesday, May 05, members of a three-judge panel of California's 2nd Appellate District declared jurors had been allowed to misinterpret Jones' contract, which should have been reviewed by the trial judge, Michael L. Stern, instead, reports Variety.
As a result, the appeals court judges declared Jackson's representatives did not have to pay $6.9 million (£5.5 million) of the 2017 ruling to Jones, now 87.
They also vacated an award of $1.6 million (£1.3 million) in remix fees claimed by Jones, insisting his contract only entitles him to receive "royalties from record sales on remixes".
Jones was allowed to keep the $2.6 million (£2.1 million) won in other fees and interest.