Re: Database Protection Paper

From: Alan Sugarman <sugarman[_at_]panix.com>
Date: Tue, 7 Oct 1997 09:49:47 -0400 (EDT)

On Sat, 04 Oct 1997, Dan L. Burk <burkdanl[_at_]shu.edu> wrote:
>
> On 10/3/97, Eric Massant <eric.massant[_at_]lexis-nexis.com> wrote:
> >
> > "Statutory Protection for Databases: Economic and Public Policy
> > Issues," by Drs. Laura D'Andrea Tyson and Edward F. Sherry is
> > posted at http://www.infoindustry.org/ppgrc/doclib/grdoc015.htm.
> > It was sponsored by Reed Elsevier Inc. and The Thomson Corporation.
>
> This paper was commissioned as an attempt to respond to the devastating
> critique of such statutory proposals found in J.H. Reichman & Pamela
> Samuelson, Intellectual Property Rights in Data?, 50 Vanderbilt L. Rev.
> 51 (1997). Interested parties should read both papers to fully
> understand the parameters of the debate.
>
> > The paper provides a strong economic rationale for legal protection
> > from piracy for databases produced by private entities. The authors
> > argue that this protection is necessary to ensure the continued
> > availability of the information services upon which Americans rely
> > in both their public and private lives.
>
> There is, of course, the little datum that we already enjoy such
> works without protectionist legislation. Waiter, may I have my
> reality check?

In addition, Reed Elsevier sudden activity since last May in this area by their own admission relates to the $350 million drop in the market value of their stock after West lost the district court case relating to the claim in the copyright of text. One really must read the amicus brief that Reed Elsevier filed in the Second Circuit and in particular pages 27 et seq.

Remember, this is a case about whether the text of a court opinion as published in a West Case Reporter exclusive of the headnotes and case summaries is copyrightable. West asserts a copyright for such activites as incorporating an amending order into an opinion by changing the words the court directs to be changed.

"The error of Judge Martin's holding can be seen by considering the situation in which there is no inducement to enhance existing copyrightable works such as judicial opinon. If legal reporter carry only the versions of opinions issued by the courts themeselves -- if they lack incentives to do more, because any competitor may swiftly scan and republish any enhancements free from liability -- then lawyers referring to the opinions will be disadvantaged by being deprived of the benefit of additional material that authors such as legal publishers add to their compilations. Without protection for the enhanced version, there is surely a very reduced incentive for such publishers to invest creative labor in considering and choosing, out of the universe of possibilities, the enhancements that they will make in the interest of improving upon the existing works." P 23 and 24.

Footnote 30, Page 24
"Some have already asserted that the 'uncertainties in U.S. law have begun to affectinvestment decisions, with producers choosing not to create particularly vulnerable databases, or not to disseminate them broadly, because of a perception that the risks are too great.' Copyright Office Report at 74"

The real nub of the Reed Elsevier problem is the following:

"The effect of the District Court's ruling on Reed's stock prices clearly evidences the economic significance of the ruling. See Raymond Snoddy, Reed Elsevier Shares Drop on U.S. Legal Ruling, Fin. Times, May 23, 1997 at 24."

All this means is that Reed Elsevier wishes to have US copyright law changed because it miscalculated the value of Lexis when they purchased it from Mead, and, that Lexis is vulnerable because now others can do what Lexis did prior to 1988, which is copy from West books in order to create a competing database.

It is interesting to observe now how two companies with the aid of Bruce Lehman can basically create an entire intellectual foundation for a database protection bill to protect their caselaw compilation which have effectively supplanted authoritative public domain resources. The fingerprints of these two companies is readily evident in the country, from their domination of the Information Industries Association, to their political influence through Lehman, their ability to have bills proposed, their special coalitions, the sponsored articles, and the planted letters from employees. Of course, Reed Elsevier has substantial power in Europe, and one wonders how this power is played out in the European database arena.

The Reed Elsevier brief is available in PDF form on HyperLaw's Web site.

ADS

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Received on Tue Oct 07 1997 - 13:50:49 GMT

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