Eighth Circuit Clarifies Copyright Protection in Software Dispute Between InfoDeli and WRI

An article by IP Update discusses the limits of copyright protection for software and the US Court of Appeals for the Eighth Circuit’s decision in InfoDeli, LLC v. Western Robidoux, Inc., which concluded that InfoDeli failed to establish copyright protection for its website and rebate software platforms. The ruling underscores the distinction between “literal” and “nonliteral” copying in software litigation and reinforces the burden plaintiffs face in demonstrating sufficient originality for copyright claims.

The case arose from a business dispute between InfoDeli and Western Robidoux, Inc. (WRI), former joint venture partners. InfoDeli created custom web-based platforms for major animal health clients, while WRI handled printing and fulfillment. Tensions emerged in 2014 when WRI, without notifying InfoDeli, hired a competitor, Engage Mobile Solutions, to replace InfoDeli’s platforms. 

WRI also shared InfoDeli’s content with Engage and abruptly terminated the joint venture. InfoDeli sued WRI, CEVA, BIVI, and Engage for copyright infringement and other claims. A jury ruled in favor of the defendants, and the district court denied InfoDeli’s post-trial motions. InfoDeli appealed.

The Eighth Circuit found no reversible error. It emphasized that while literal copying refers to duplicating source code, nonliteral copying involves reproducing the structure, sequence, or interface design. InfoDeli had only pled claims of nonliteral copying, and the district court had correctly found these elements unprotectable. 

InfoDeli’s attempt to claim copyright over the platforms “as a whole” failed, as it could not show the required level of creative arrangement. The court also rejected InfoDeli’s claim that the district court should have considered literal copying when it had not been pled.

For litigators, this decision is a reminder to clearly identify and support claims of software copyright infringement, especially distinguishing literal from nonliteral copying, and to demonstrate how the combined elements of a software system rise to the level of protectable expression.