Copyright Caselaw | Uruguay | Copyright Successfully Enforced in Banking Sector
On March 4, 2020, an Appeals Court in Uruguay ruled against the defendant in a copyright and unfair competition case involving the use of a specific software within the banking industry. The case involved the plaintiff’s (Top Systems S.A.) SISTEMA TOPAZ registered software used by the defendant (Sinapsis SRL) without a license.
Plaintiff filed suit for copyright infringement and unfair competition since the defendant had used its registered software within technology services offered to Banco Santander.
SISTEMA TOPAZ, a core finance and banking software is used by banks and other financial institutions via license by its registrant, which led a lower court to dismiss the plaintiff’s suit, as it found that it made sense for the defendant to be able to use such software within the scope of a support and maintenance service agreement with Banco Santander.
However, the Appeals Court reversed such ruling and found the defendant to have used plaintiff’s software beyond the scope of the service agreement with Banco Santander, by developing a module using the source, programs and tools from such software and offering to other banks; and also stated that although both parties had a previous business relationship, there was no evidence that the defendant had acquired a license that would allow for the use of its software for purposes different than support and maintenance services for Banco Santander.
In revoking the lower court’s decision and ruling in favor or the plaintiff, the court found the defendant liable for copyright infringement and ordered that it cease use of the registered software, other than as permissible within the service agreement with Banco Santander, and to pay the plaintiff for damages in an amount equal to the cost of the corresponding license, plus a fine in the same value of the subject license. Further damages, i.e. for lost profit where not granted by the court due to the plaintiff’s failure to produce evidence supporting such claim.
