Newman Dissents from CAFC View that SAS Failed to Show Copyrightability of Nonliteral Elements of Software Programs

“[W]Here, the court received compelling evidence that the alleged material was uncopyrightable, and SAS, as the copyright owner, was obliged to specifically identify the material of the SAS program it claimed was copied. had. – CAFC

CopyrightThe US Court of Appeals for the Federal Circuit (CAFC) ruled Thursday that it failed to establish copyright in software program elements claimed by SAS Institute, Inc. Justice Newman disagreed, arguing that the ruling “violates copyright law and departs from established precedents and practices for copyrighting computer programs” and represents “a far-reaching change.”

SAS sued World Programming Limited (WPL) in the Eastern District of Texas, alleging literal copyright infringement of its software, among many other allegations not part of the appeal. SAS appealed to his CAFC, specifically challenging the district court’s copyright determination, both in its use of a “special hearing” to determine copyright and in its dismissal of SAS’ expert report. , argued that the district court abused its discretion.

Non-literal elements relate to aspects of computer programs that are not reducible to written code. “These elements include the program’s architecture, structure, sequence and organization, operational modules, and user interface,” he explains the CAFC. A similar example is a novel in which the written word is the literal element, and the chapters, characters, and plot structure are not literal.

Extraction-filtration-comparison test

SAS argued that it had fulfilled its burden of proof to prove copyrightability when it showed that the SAS System was the subject of a valid registered copyright. However, the CAFC states that “a mere preliminary showing that SAS has a valid registered copyright directed to aspects of the SAS system is sufficient to protect each nonliteral element of the SAS system.” It is not sufficient to prove that Instead, after SAS has met the burden of indicating the necessary protectability threshold, it uses copyright’s so-called abstraction, filtering, and comparative tests to determine which elements are unprotected. It became a burden for WPL to check. In this test, “Courts decompose an allegedly infringed program into its constituent abstractions . . . [Then] Courts sift through all unprotectable material—filtering…. , to determine if there is substantial similarity, i.e. comparison. “

The CAFC said WPL had discharged its liability, indicating that “at least a substantial portion of the allegedly infringed elements of the SAS System are not protected by copyright.” said like this.

“For example, WPL has established that an earlier version of the SAS System, ‘SAS 76’, is in the public domain…. WPL indicates that the SAS language is open and free for general use and should therefore be filtered. WPL experts opined that the allegedly copied material contains open source elements that cannot be protected. fact and data elements; elements not proprietary to SAS; mathematical and statistical elements; process, system and method elements; Familiar traditional display elements such as tables, graphs, plots, fonts, colors and lines. Material not authored by SAS. statistical analysis; scene-a-fair elements; and short phrase elements.

The CAFC further noted that SAS declined to refute WPL’s allegations and “failed to provide evidence relating to the ‘filtering’ step under the three-part test.” Ultimately, the majority argued that:

“[W]Here the court received compelling evidence that the alleged material was not copyrightable, and SAS, as the copyright owner, specifically identified the elements of the SAS program it claimed were copied and There was an obligation to prove that the elements were within copyright. Protection extends to such elements under copyright law. “

On SAS’ allegation that the district court’s use of a “copyright hearing” to determine copyrightability was an abuse of discretion, as inconsistent with Federal Rules of Civil Procedure (FRCP) 52 and 56 , the CAFC has determined that the hearing is a pretrial conference, and that such procedures are fully supported by the FRCP. The CAFC also ruled that the exclusion of SAS’ expert report was not an abuse of discretion because the expert did not conduct a filtration analysis and the independent analysis contained “clearly unprotectable elements.” said SAS was unable to specifically identify its theory of infringement, and the expert report did not help the court clarify this point. It added:

“It is not sufficient merely to point out the claimed elements and declare them protectable because they are creative or because other alternatives exist. It overturns copyright law because it obviates the requirement to prove that the alleged material constitutes protected expression.”

Newman: It’s not the law

In a 14-page dissent, Judge Newman said the majority’s ruling “violated law and precedent.” The district court’s ruling that SAS computer programs are not copyrightable because they contain non-literal elements, he said, “is not law.”she pointed Feist Publications, Inc. v. Rural Telephone Service Co.held that the “selection and arrangement” of known elements is protected by copyright.

The majority referred to Newman’s arguments in a footnote, explaining: The challenged material is entitled to copyright protection.[n]Every choice, adjustment, or arrangement will pass.”…Furthermore, Feist contained no computer code.

Newman, however, said the district court and her colleagues erred in conflating the issues of infringement and copyrightability and using the abstraction-filtering-comparison test to determine copyrightability. “[A]The Second Circuit said filter analysis helps “determine whether the noncharacter elements of two or more computer programs are substantially similar,” explained Newman. She also cited a Federal Circuit decision. oracle vs google, The court ruled that “Oracle exercised creativity in the selection and placement” of method declarations when it created the API package and wrote the associated declarative code, resulting in a protectable expression entitled to copyright protection. It contains ‘.

Newman also objected to the court’s failure to resolve the issues raised regarding the burden of proof, concluding:[t]The legal and policy premises of computer program copyright have been resolved by now. There is no reason for judicial initiatives to disrupt this important area of ​​commercial and social good. “

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