Legal Updates

Copying simulations developed by a competing company constitutes copyright infringement

March 17, 2024

A company that provides services to venues complexes, which also includes seating arrangements for events, recruited customers from a competing company, while during the onboarding process data was extracted from the competing company's system, including simulations owned by it.

The Court accepted the claim and held that the copying of the simulations and their commercial use constitutes copyright infringement and the infringing company must pay compensation to the competitor. A "protected" original work is protected under the Israeli law. Three cumulative aspects must be examined: The "origin test" - which examines whether the "work" was created by the contending party and whether it owns the right to it; "The effort test" - which examines the extent of the effort of the contending party in the creation, when a minimal investment of some human resource in its creation is sufficient; And also, the "creativity test" - the test of whether the contending party has demonstrated any intellectual contribution to the creation. Here, the sketches of the event halls and the simulations are a 'protected work' owned by the competing company. The simulations were developed abroad especially for the company and include various components (such as: photos and drawings) bearing a 'personal stamp'. The infringing company used the simulations with 28 customers, on different occasions, infringing copyrights. Therefore, the company must cease any use of the simulations and compensate the competing company for copyright infringement.