Criminal Protection of Databases

The owner of a corporate event planning company filed a criminal complaint against two former employees, whom he accused of misappropriating a database of his ownership.

The database in question included a compilation of experiences and best practices for the organization and planning of corporate events. Following their resignation, the defendants used this database to set up their own competing company,

The Court of First Instance indicted both defendants on charges of intellectual property fraud, pursuant to Section 71 of Intellectual Property Law No. 11,723.

The defense challenged the decision on the grounds that a database of these characteristics is not protected by Law No. 11,723. Thus, the defense argued that Intellectual Property Law protects the particular expression of an idea or process, but not the concept in and of itself. Therefore, the exploitation of a useful idea is perfectly legal.

Following the presentation of arguments by both counsel, the Federal Court of Appeals on Criminal Law upheld the ruling of the Court of First Instance.

In so deciding, the Court of Appeals held that the databases are indeed protected by Intellectual Property Law No. 11,723, following their inclusion by Law No. 25,036. Moreover, the Court stressed that the database in question is more than a mere compilation of information. On the contrary, it is the result of a careful data selection and classification, aimed at establishing a specific working methodology, tailored to the specific needs of a particular company. Therefore, it falls squarely within the scope of Law No. 11,723.