During a 2000 concert, the officers went backstage and told organizers power would be shut off if they showed a sexually explicit video.
That confrontation was recorded and included in a popular DVD highlighting the "Up in Smoke" national concert tour that also featured rappers Snoop Dogg and Ice Cube. The officers filed the lawsuit, citing a privacy violation.
The Michigan Supreme Court overturned an appeals court's decision claiming that there's no right to privacy when police are doing their job.
The Associated Press contributed to this report.