DSMC, Inc. v. Convera Corp.

Holding:

Defendant's intermediate copying of plaintiff's database schema to extract raw data and create a similar product with similar features was not fair use.

Detailed Summary:

Plaintiff and defendant worked together on a project to migrate National Geographic’s film footage onto a searchable internet site. At some point, defendant’s services were no longer needed and its access to the database was limited. On this motion for summary judgment, the court noted that plaintiff had proffered sufficient evidence to create the inference that defendant had the express purpose of examining plaintiff’s database schema and copying it: defendant had access to the back-up tape, a password and user ID so it could see the inner workings of plaintiff’s product. Defendant argued that its “intermediate copying” of the database schema in order to write scripts to migrate data into its product was fair use. The court disagreed, noting that the fair use doctrine would not apply where the purpose of the copying was to go into competition with the plaintiff from whom there was copying. Defendant and plaintiff here are direct competitors; defendant not only wanted to extract raw data but also wanted to create a similar product with similar features. This was not fair use, so the copyright claim could go forward.

Also See:

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