[Congressional Record Volume 143, Number 134 (Wednesday, October 1, 1997)]
[Senate]
[Page S10263]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                    LEGAL PROTECTION FOR DATA BASES

  Mr. GRAMS. Mr. President, I rise today to make a few remarks about an 
important issue facing our Nation in the information era--the issue of 
legal protection of data bases. The U.S. Copyright Office recently 
released a comprehensive report on the issue of data base protection. I 
welcome this new information and look forward to both the prompt 
consideration of the report by Congress and to the introduction of 
much-needed legislation that will protect the enormous investments of 
data base producers, to assure scientists, educators, businesses, and 
other consumers that they will continue to have access to accurate, 
verifiable information.
  The Copyright Office report provides the requisite legal and 
legislative analysis that Congress needs in order to act in an 
appropriate and timely manner to respond to the legitimate concerns of 
all parties.
  It is an important step in the process of addressing recent 
technological and legal developments that have left valuable American 
data bases vulnerable to unauthorized copying and dissemination.
  The report states that it is expected that all member countries of 
the European Union will implement the European Union's directive on 
data bases by January 1, 1998--a fact that underscores the 
international implications of this issue for American data base 
producers. The directive provides a new form of protection for data 
bases to supplement copyright law. The directive extends this new 
protection only to data base producers located in a European Union 
member state and will not protect data bases originating in the United 
States until we adopt our own data base protection legislation.
  Mr. President, the United States, as the world's leading producer and 
exporter of data bases of all types, needs legal protection abroad far 
more than any other nation. Unless the United States adopts this 
protection, the data bases of U.S. companies will be at risk. Smaller 
U.S. firms without global operations will be the most vulnerable. The 
worst-case scenario is that this could potentially force U.S. companies 
to move their operations out of this country and into countries that 
offer data base protection. Such a move poses a serious threat to U.S. 
jobs.
  After studying the report, I believe current U.S. law and precedent 
are insufficient to adequately protect the enormous investment of money 
and effort that typically goes into creating data bases, both print and 
electronic. This is especially true given the declining copyright 
protection afforded to data bases after the Supreme Court's 1990 
decision in Feist, and the inherent vulnerability of data bases to 
piracy made easy in the new digital environment.
  America's data base producers employ or represent thousands of 
editors, researchers, and others who gather, verify, update, format, 
and distribute the information contained in their data base products. 
They also invest billions of dollars in hardware and software to manage 
these large bodies of information.
  Mr. President, comprehensive data is indispensable to the successful 
operation of today's American economy, including information about 
communications, finance, medicine, law, news, travel, defense, and many 
other topics. As one of America's leading growth industries--one that 
generates jobs and supports American families--the information services 
industry creates a wealth of user-friendly, reliable, and up-to-date 
information critical to the lives of American citizens. Congress must 
provide the legal protection that ensures the future viability of the 
information services industry. Thank you, Mr. President.
  I yield the floor.

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