SAS Institute Inc v. World Programming Ltd

“Copyright protects expression — not the functionality of computer programs.”

Short Description

This influential EU case clarified the scope of copyright protection in software. SAS, a major analytics software company, alleged that WPL unlawfully reproduced functionalities of its SAS system. The court had to determine whether program functionality, languages, and data formats are protected expression or unprotectable ideas.

Facts

SAS created statistical analysis software used globally. WPL developed a competing program that could run SAS scripts by studying SAS manuals and user behavior without copying source code. SAS claimed that the functional elements, data file structures, and programming language constituted copyrightable expression.

Findings / Reasoning

The Court of Justice of the EU held that functionality, programming languages, and data file formats are not protected by copyright, as they belong to the realm of ideas. Only the actual source code or specific creative expression is protectable. Studying a program’s behavior to create a compatible system is lawful unless code is literally copied.

Suggestions / Observations

The ruling protects interoperability and competition within software markets. It encourages reverse engineering for compatibility, provided that developers do not copy actual code or creative elements. Businesses must rely on patents, contracts, or trade secrets — not copyright — to protect functionality.

Judgment & Date

The CJEU ruled largely in favor of WPL, rejecting SAS’s broad protection claims.

Judgment Date : 2012 (CJEU).