Private Rights in Public Data?

John is joined by Shon Morgan and Jack Baumann, both partners in Quinn Emanuel’s Los Angeles office. They discuss the growing legal tension surrounding the aggregation and commercialization of publicly available information. It focuses on when compiling public data into structured, searchable databases creates a protectable property interest, and when such activity exposes companies to legal risk.One recent series of cases involves disputes over whether entities that invest substantial resources to digitize, index, and organize public records may prevent others from accessing and reusing that enhanced data. In these cases, courts often recognize a distinction between underlying public records, which remain freely accessible, and value-added compilations created through private investment, which may be entitled to protection.A team led by Jack recently won one of these cases on behalf of Ancestry.com, a genealogy company that invested heavily in digitizing and organizing historical public records. Ancestry partnered with state records archives to convert paper and microfiche records into digital formats, adding searchable indexes and metadata that transformed otherwise difficult to use materials into accessible databases. Although the underlying records remained public and available to anyone willing to retrieve them manually, the company’s financial and technical investments significantly enhanced the utility of these public records.The dispute arose when an individual sought to obtain not the original public records, but the company’s digitized and indexed versions, through a public records request for Ancestry’s work directed at one state’s archive. The request effectively attempted to appropriate the company’s value-added work product without incurring the costs required to create it. An administrative body initially ruled that the materials should be disclosed, reasoning that the company had acted as an extension of the government in performing a public function. On appeal, however, a higher tribunal rejected that view, concluding that the digitized and organized database was materially different from the original records and not subject to compulsory disclosure.A second series of cases have been brought by individuals whose personal information appears in these searchable databases such as ZoomInfo, Spokeo, or Whitepages.com. Plaintiffs in these cases often assert privacy or right of publicity claims, arguing that even if the data originated from public sources, companies should not profit from compiling and monetizing that data without their consent. Although many of these claims face challenges similar to claims in data breach cases, especially in demonstrating actual harm or the inherent value of ordinary personal information. Some courts have allowed these cases to proceed past the dismissal stage, creating significant potential exposure for companies due to the prospect of class-wide liability and statutory damages.While raw public data remains freely accessible, significant private investment in organizing and enhancing that data may often generate a protectable interest. However, individuals may argue that while their information may be publicly available, they never agreed that third parties could profit from it. This tension remains unsettled and will likely evolve as courts confront similar disputes in other contexts involving large-scale data aggregation.Podcast Link: Law-disrupted.fmHost: John B. Quinn Producer: Alexis HydeMusic and Editing by: Alexander Rossi