BUC International Corp. v. International Yacht Council Ltd.
2007 U.S. App. LEXIS 14713, 83 U.S.P.Q. 2d (BNA) 1129, 489 F.3d 1129 (2007)
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Rule of Law:
The 'substantial similarity' standard, not the heightened 'virtual identicality' standard, is the correct legal test for copyright infringement of a factual compilation, unless the claim involves the nonliteral elements of a computer program. A factual compilation is copyrightable if its selection, coordination, and arrangement of data possess a minimal degree of creativity and are not so mechanical or routine as to be unoriginal.
Facts:
- BUC International Corporation ('BUC') developed a computer network called BUCNET, a centralized, private multiple listing service (MLS) for yacht brokers.
- BUC's president, Walter Sullivan, created a 'Standard Listing Form and Format' which selected and arranged specific section headings for presenting information about the yachts on BUCNET.
- BUC obtained annual copyright registrations for the 'compilation, selection and organization' of its BUCNET database.
- International Yacht Council Limited ('IYC') and other broker associations formed to create a competing online MLS and hired MLS Solutions, Inc. to develop it.
- MLS Solutions populated its database by having brokers, who were also BUC licensees, copy their listings directly from BUCNET and submit them.
- MLS Solutions' staff also used BUCNET passwords obtained from BUC licensees to directly access and copy listings for the IYC website.
- BUC discovered that over 4,400 listings on the IYC site were replications of BUCNET listings by embedding hidden 'markers' in its data, which subsequently appeared on IYC's site.
Procedural Posture:
- BUC sued IYC, MLS Solutions, and its president, William Pazos, for copyright infringement in the U.S. District Court for the Southern District of Florida.
- The district court granted BUC a preliminary injunction against the defendants.
- The case was tried before a jury, which found that BUC owned valid copyrights and that defendants IYC and MLS Solutions had infringed them.
- The jury found defendant Pazos not liable.
- The jury awarded BUC $1,598,278 in actual damages.
- Following the verdict, the district court denied the defendants' renewed motions for judgment as a matter of law and for a new trial, and entered a final judgment for BUC.
- IYC and MLS Solutions (appellants) appealed the judgment to the U.S. Court of Appeals for the Eleventh Circuit.
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Issue:
Does the 'substantial similarity' standard, rather than the 'virtual identicality' standard, apply to claims of copyright infringement involving the selection and arrangement of data in a factual compilation?
Opinions:
Majority - Tjoflat, Circuit Judge
Yes, the 'substantial similarity' standard is the appropriate test for infringement of a factual compilation. While a heightened 'virtual identicality' standard exists, it applies narrowly to claims involving the nonliteral elements of a computer program, such as screen displays and user interfaces. BUC's copyright claim is for the selection, order, and arrangement of its factual data—a classic compilation—not for the look and feel of its software. Therefore, the general infringement standard of 'substantial similarity' between the original elements of BUC's compilation and the defendants' work was correctly applied by the district court. The court also found sufficient evidence for the jury to conclude BUC's compilation was original, as its selection and arrangement of headings was not merely mechanical or routine, and rejected the defendants' argument that the merger doctrine applied, as there are many ways to express the 'idea' of a yacht listing.
Analysis:
This decision clarifies the scope of the 'virtual identicality' standard for copyright infringement within the Eleventh Circuit, confining it to cases involving nonliteral computer program elements. It reinforces that for traditional factual compilations, even those in a digital format, the standard remains 'substantial similarity.' The ruling protects creators of databases by affirming that their creative selection and arrangement of facts are protectable under this general standard, preventing competitors from making slightly altered copies to evade liability. This provides a clearer, more predictable framework for copyright holders of compilations seeking to enforce their rights.
