Directories fight to go to High Court

Telstra is appealing to the High Court to try to retain copyright over its Yellow Pages and White Pages directories, published by its Sensis arm. Four Federal Court judges previously found the directories were not protected by copyright because their collection, production and publishing processes are mostly computerised. Telstra has filed for special leave to overturn that decision.

Federal Court judges concluded the directories lacked the required independent intellectual effort or 'creative spark.' The court said collecting, editing and storing information — largely computerised processes in this case — did not amount to authorship or a protected compilation under copyright law.

Telstra and Sensis say staff work contributes to authorship or a compilation and that material 'brought into existence by a computer system' can be copyrighted. They point to verifying, editing, arranging information and maintaining data in computer systems as activities that make the directories original literary works.

According to the article, Telstra could lose its exclusive right to publish millions of directory listings. For investors, that could mean reduced control over the directories business and potential pressure on any revenue streams tied to exclusive publishing rights — although the article does not provide specific financial figures.

In 2007 Telstra and Sensis took action against Phone Directories Company for allegedly reproducing copyrighted information. In a later decision, Justice Michelle Gordon ruled the phone-directory information was not protected by copyright because there was insufficient independent intellectual effort. Telstra’s appeal of that decision was unanimously rejected by three Federal Court judges in December.

The article quotes Scott Buchanan, a partner at DLA Phillips Fox, saying Telstra’s appeal is likely to fail. He noted the High Court has recently shown reluctance to allow copyright protection for informational works such as databases.

Sensis spokesman Damian Glass said the issue has far wider implications: businesses across Australia should expect that their employees’ hard work and their investment in technology should not mean losing copyright protection. For investors, this speaks to broader concerns about how intellectual property and investment in data-driven products are legally protected.

Telstra has applied for special leave to appeal to the High Court. Investors should watch whether the High Court grants leave and, if it does, the court’s ruling on whether largely computerised compilation processes can create copyright-protected works — a decision that could affect directory rights and broader database protections.