Top EU Court Limits Copyright Protection on Computer Programs

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Top EU Court Limits Copyright Protection on Computer Programs In what is seen as laudable by open source developers and as downright terror by monopolistic software companies, the Luxembourg-based Court of Justice of the European Union has held that ideas and concepts behind computer programs are not entitled to copyright protection. The verdict opens a floodgate for complementary and competing software to challenge market leaders. The ruling was given in a case over U.S. computer company SAS Institute accusing U.K. firm World Programming Ltd over copying programs of SAS and infringing copyrights.

05/03/12

that they observe, to ensure that their own software is interoperable. … Virtually everything we do these days,

The court held that both source code and object code

including design and engineering, are heavily software-

is protected by copyright law, but ideas and principles

based, so this ruling has ramifications across a broad

behind a software program is not subject to copyright.

swath of the economy.”

The court said, “To accept that the functionality of a computer programme and the programming language

A Clifford Chance partner, Thomas Vinje, who is also

can be protected by copyright would amount to making

a spokesman for ECIS the information technology

it possible to monopolise ideas, to the detriment of

lobby group said, “The Court of Justice has acted in

technological progress and industrial development.”

favour of innovation, consumers and fair competition, by ensuring that copyright protection in computer

Though the judgment came in relation to a dispute

programs is appropriately balanced and that

over software companies, the inherent principle can be

competitive and interoperable computer programs

extended to include the flow of development in almost

can continue to be developed without threat of legal

any industry sector. It allows companies to create

liability.”

competing products without breaching copyright rules. The ruling is in line with previous ruling in the EU Miranda Cole, a partner at the law firm of Covington

including the 2010 finding of the Court of England and

& Burling in Brussels told Reuters: “The court ruling

Wales on the issue.

has significant implications for interoperability because it confirms that software producers can use syntax,

The ECJ case was C-406/10, SAS Institute vs World

keywords and commands used in third party software

Programming Ltd.

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