Your client and prospect databases are valuable resources that could cost the agency a bundle if they fell into the wrong hands. Yet under federal copyright law, a competitor might be free to copy and use this information scot free.
An article in Database Marketing and Management Magazine (Vol. 1, No. 1) noted that the federal Copyright Act limits copyright protection to material arranged in a creative or original manner. Simple customer and client lists may not meet this criterion. A recent Supreme Court decision reaffirmed the right of a publishing firm (Feist Publications) to copy the names and addresses of customers of a telephone company (Rural Telephone Service) on the grounds that Rural's list failed to demonstrate original authorship. On the other hand, the article points out that a database can be defined as 'facts arranged creatively.'
Although the Feist decision seems to gut the shield of federal copyright law, all is not lost. If a competitor rips off your database(s) and uses this information to sell to your customers and prospects, you should be able to sue them in state court.
As a precaution, call the U.S. Copyright Office hotline (202) 707-3000 for information on the one-page copyright registration form. Fill out the form, attach two copies of your database listings, and send it in. If you need to file a copyright lawsuit, the registration will document your ownership. An ounce of prevention . . .