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National Car Rental System, Inc. v. Computer Associates International, Inc.

991 F.2d 426 (1993)

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National Car Rental System, Inc. v. Computer Associates International, Inc.

United States Court of Appeals for the Eighth Circuit
991 F.2d 426 (1993)

SC

Facts

Computer Associates International, Inc. (CA) (defendant) licensed computer software to National Car Rental Systems, Inc. (National) (plaintiff). The license agreement restricted National’s use of the software to only its own data and not to data of third parties. Subsequently, National contracted with Electronic Data Systems Corporation (EDS) to provide its computer- and data-related services. CA and National updated their agreement to allow for EDS’s use of the CA software. CA found out that EDS was using the software to process data of third-party rental organizations. When CA demanded that National cease and desist, National filed for a declaratory ruling that its use did not violate the license agreement or violate the Copyright Act. CA countersued National for breach of the license agreement. The district court dismissed CA’s countersuit on the ground that the breach-of-contract claim was preempted by the Copyright Act. CA appealed.

Rule of Law

Issue

Holding and Reasoning (Magill, J.)

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