Database Protection in Light of the European Data Act and Servitisation

Sui generis database right over machine-generated data has been under uncertainty and debate for a long time. While in literature this kind of protection has been criticised, case law from the Member States suggests that in practice some machine-generated or sensor-based data has been eligible for sui generis right. However, the recent Data Act tries to clarify this matter and the function of this clause in practice is analysed in this thesis together with the effect of servitisation on database protection. The primary research method is legal dogmatics. The primary source materials are official regulations and communications from the EU supported by case law and literature.

In the Database Directive the scope of sui generis right is not strictly specified. Generally, all data with an independent nature that has been structured and can be retrieved qualifies. The primary criterion for receiving this right is substantial investment in obtaining, verifying or presenting the suitable data or information mentioned. The holder of the right can prevent others from extracting or reusing the whole database or substantial parts of it.

The Data Act is part of the European Data Strategy, and it seeks to promote access to data among other things. Article 43 of the Act declares that data obtained from connected products and related services do not qualify for sui generis right. By simplifying this, it excludes data from IoT devices from sui generis right.

However, inferred or derived data is not in the scope of the Data Act. This could mean that information processed from IoT data can still be part of sui generis protected database. It can be difficult to determine what the word derived data means, but at least some use of data analytics, complex algorithms or for example software is required.

Additionally, Article 43 raises concern over the protectability of mixed databases. It has not been clearly addressed if databases containing both IoT and non-IoT data are qualified for sui generis right. The intention of the legislator suggests that such databases do not qualify for the right. However, this issue could be clarified.

Furthermore, the initiative to create Common European Data Spaces and the phenomenon of sharing data via service agreements shape the way databases are protected. Data spaces promote common practices and sharing of just relevant data, not the whole database. Data as a Service on the other hand makes it possible for the service provider and thus data holder to control how to data is being shared which reduces the importance of protection of compilations.

In conclusion, the framework of database protection is moving towards contractual protection in Europe. All the discussed aspects either block the use of sui generis right or make it irrelevant. Thus, it is important to secure also the rights of data holder in data sharing agreements.