Key Legal Issues
- Scope of copyright protection for databases under Maltese law.
- Legal thresholds for substantial reproduction and infringement.
- Award of damages for copyright infringement and unlawful competition.
Executive Summary
The First Hall, Civil Court of Malta has confirmed that substantial unauthorised reproduction of a protected database constitutes copyright infringement. In Yellow Pages (Malta) Ltd v. Neumann, the Court awarded €50,000 in damages, highlighting Malta’s robust approach to protecting intellectual property assets, including non-creative compilations that involve substantial effort and organisation.
Protection of Databases under Maltese Copyright Law
In its decision of 26 April 2011, the First Hall, Civil Court addressed whether Yellow Pages’ compilation of business listings, while largely factual, was eligible for copyright protection.
The Court reaffirmed that databases reflecting significant skill, labour, or investment are protected under Maltese intellectual property law, even where the individual entries are not original.
This mirrors broader European standards, particularly under the EU Database Directive, reinforcing the protection of collections that involve substantial organisational effort.
Substantial Reproduction and Unlawful Competition
The defendant, Neumann, had reproduced Yellow Pages’ database content extensively and systematically, offering a competing directory service without independent verification or creative input.
The Court concluded that this constituted substantial reproduction and infringed Yellow Pages’ rights.
In addition to €35,000 awarded for copyright infringement, the Court imposed a further €15,000 penalty for unlawful competition, recognising the commercial advantage unfairly obtained through the unauthorised use of another party’s investment.
Strategic Implications for Businesses in Malta
The judgment confirms that database owners can successfully enforce their rights where they demonstrate:
- Significant skill, labour, or investment in compiling data.
- Substantial unauthorised use of their protected content by a competitor.
For businesses operating in Malta’s digital, publishing, or information sectors, this decision underscores the importance of:
- Protecting database content through clear documentation of creation and maintenance processes.
- Avoiding unauthorised use of third-party compilations, even where individual data points appear factual or public.
