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RYANAIR: screen scrapers, databases, free-riding and unfair competition in Spain
Here's an instructive piece from our man in Spain, Fidel Porcuna, on a situation in which -- even for a business that has an ample portfolio of rights -- it may be difficult or impossible to guard against free-riding. Fidel writes:
On 9 October 2012 the Spanish Supreme Court ruled on the dispute between Ryanair Ltd and Atrápalo, S.A., a Spanish online travel agency using a screen scraper software on Ryanair's website. The Court confirmed previous instances decisions that dismissed Ryanair's claim based on copyright infringement of a database, infringement of a sui generis or standalone database right, and unfair competition. Proved facts were as follows: Atrápalo regularly enters Ryanair's website as a mere user. By means of a screen scraper software that reads the search patterns of the Ryanair website, Atrápalo extracts the information on flights its own user is requesting through Atrápalo's website and provides it, omitting that such information is scraped from Ryanair's website. Atrápalo collects not only time details, but also prices as displayed in Ryanair's website. To such such prices Atrápalo adds a cut (its profit). Ryanair offers a whole range of complementary services to anyone who navigates through Ryanair's website searching for a flight. The terms and conditions regulating the use of Ryanair websites include a prohibition to use screen scrapers and use of the websites with a commercial purpose.
Based very much exhaustively
on the CJEU's interpretation of Directive 96/9 on the legal protection of databases
(cases C-604/10 Football Dataco Ltd, The Scottish Premier League Ltd, The
Scottish Football League, PA Sport UK Ltd v Sportradar GmbH and Sportradar AG; C-545/07
Apis-Hristovich
EOOD v Lakorda AD; C-444/02 Fixtures Marketing Ltd v Organismos Prognostikon
Agonon Podosfairou; C-338/02 Fixtures Marketing
Board Ltd v Svenska Spel AB, C-203/02 British
Horseracing Board and Others, etc.), the findings
of the Court are as follows:
- Ryanair does not have a database protected
under Article 12.2 Spanish Copyright Act (as implemented by Articles 1(2)
and Article 3(1) of Directive 96/9). The
Court declares that there is not a proper database (no collection of
independent data), but a software that generates the information requested
under the parameters introduced by the user (that is, a software that
provides the best price for the flight the user is looking for,
considering a range of variable factors). In the hypothetical case that
the Court accepted Ryanair's allegation on the existence of a database, in
no case it could be accepted that such hypothetical
database's structure meets the originality necessary to be
protected. Indeed, the selection and arrangement comes from a
software, says the Court. Ryanair defended that, in contrast, the
Regional Court of Hamburg had declared in Ryanair v Cheaptickets
of 26 February 2010 that Ryanair did have a database.
- There is not a sui generis right in a database,
as Ryanair's substantial investment was not directed to collect data:
it was directed to create a software that generates information under
the parameters introduced by the user of Ryanair's website. That
is, the investment refers ultimately to creation of information, but not
to its collection, verification or presentation.
Importantly, the Court refers to
violation of contractual law and unfair competition as follows:
- The Court concludes that there is no contractual
relationship between Atrápalo and Ryanair and therefore no violation of a
contract exists. The Court accepts that the supply of or the access to
information on flights could be subject to a contract under the
Spanish law, but it considers that the use of the Ryanair website –- free to anyone who types the URL address –- does not entail a consent to
enter into such a contract. Therefore Ryanair failed to prove Atrápalo's consent to enter into its terms and conditions to navigate through its website – despite the latter using the
website through a screen scraper, expressly forbidden by such terms and
conditions. The situation then, as viewed by the Court, is that Atrápalo carried out something not allowed by Ryanair in a contract to
which it did not consent and so no violation of the contract
could exist. The Court noted that Ryanair acknowledged that it does not
apply proper (technical) means to prevent travel agencies to use
their websites.
- Based on procedural reasons, the Supreme
Court did not decide on the merits regarding unfair
competition. But such is nonetheless rejected by the lower court (Court of
Appeals). Ryanair argues that Atrápalo is free-riding on its effort
to create a potent and liable software that optimizes
flight information according to users' requests. By the screen
scraping, Atrápalo is also diverting users away from Ryanair's website where a range of different complementary services are offered to
whom is looking for a cheap flight (car rentals, hostels, etc.)
causing loss of profits to Ryanair. The Appeals Court believes there is no
unfair advantage of Ryanair's repute (as argued by Ryanair's lawyers); and Atrápalo or other travel agencies do not need an
authorisation from Ryanair for exercising their intermediary's
role as there is no legal right that would support this. Nor is a bad
faith conduct, as Atrápalo is not affecting the normal functioning of
the market or altering the market's
competitive structure. Indeed, it is beneficial for users and therefore
helps in keeping and fostering the free competition of the
current economic order.
Tags: Spain, unfair competition, copyright, databases,
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22 February 2014 @ 13.39
The Irish High Court, in a summary decision on the jurisdiction point, did not need to and should not have reached a conclusion about the binding nature of the purported contract-see the very different approach in Ryanair v On the Beach. Could the author of the blog provide a link to the judgment of the Spanish Supreme Court?
01 March 2013 @ 18.09
The contract point directly contradicts a finding of the Irish High Court on almost identical facts. In that case it was in the context of whether there was a valid contract for the purposes of A23 of the Brussels Regulations. It has to be wondered whether the general loathing of Ryanair has a bearing on these cases but the finding that the terms and conditions are not binding in these circumstances could have far reaching and unintended consequences for a whole range of situations. http://www.bailii.org/ie/cases/IEHC/2010/H47.html