Lionsgate's bid to have Michael compete in the comedy or musical categories at the Golden Globes has been rejected.
The awards committee ruled the Michael Jackson biopic, which charts the King of Pop's rise to global stardom as a member of The Jackson 5 and then his solo career, ending with the Bad Tour show at London's Wembley Stadium in 1988, did not meet the categories' criteria.
According to Gold Derby, which broke the story, "a musical can be a comedy or a drama in which songs are used in addition to spoken dialogue to further the plot".
Lionsgate can appeal the decision before the October 31 submission deadline; if the studio moves ahead, the awards committee will evaluate the appeal.
If the appeal is dismissed, the film and its stars, including Michael's nephew, Jaafar Jackson, 30, who plays the Thriller hitmaker, will have to compete in the drama categories against the likes of The Odyssey and La Bola Negra.
Colman Domingo, 56, and Nia Long, 55, who played Michael's dad Joe Jackson and mum Katherine Jackson, respectively, are not affected, as the supporting actor and actress categories are not divided by genre.
After Ray and Walk the Line won in the musical or comedy categories, the Golden Globes changed their rules to require music to drive a film's narrative, meaning music on its own was no longer enough to qualify a movie as a musical.
Since then, musical biopics, including A Complete Unknown, Elvis and Bohemian Rhapsody, have all been submitted as dramas, while Inside Llewyn Davis competed as a comedy.
Obsession and Tender Loving Care have both been accepted as comedies by the awards show, with nominations set to be announced on December 7, and the ceremony, hosted by 42-year-old comedienne Nikki Glaser, scheduled for January 10.
Directed by Antoine Fuqua, 61, Michael became the first biopic to surpass $1 billion at the worldwide box office and is Lionsgate’s biggest release.
And a sequel is in the works, with California authorities approving $30.8 million in tax incentives to support the production earlier this month.
Jaafar thinks Michael, who died of acute propofol intoxication in June 2009 at the age of 50, would have been "proud" after his recent movie became the first biopic in history to surpass $1 billion at the global box office.
Speaking on the Variety Awards Circuit Podcast, he said: "I was pretty emotional.
"I know how proud Michael would be of that, because he was someone who wanted to break many records."