Don’t destroy your database right! Assigning a database right outside the UK or EU could destroy it
- Rosie Burbidge
- Jul 10
- 2 min read
Database rights are a unique form of protection that exist only in the UK and EU. But they come with a catch: if you assign the right to an entity or person outside the UK (for a UK right) or the EU (for an EU right), the database right will automatically cease to exist.
This isn’t a theoretical risk – it’s built into the legislation.
A quick refresher: what is a database right?
Under UK and EU law, database rights protect databases that involve a substantial investment in obtaining, verifying or presenting their contents. These rights are separate from copyright and arise automatically. They last for 15 years from creation or publication (whichever is later) and can be renewed if substantial changes are made.
Importantly, database rights are a form of sui generis protection – they don’t exist in most jurisdictions outside the UK and EU.
Why location of the rightsholder matters
Both the UK and EU database right systems include a so-called “qualifying requirement”: the rightsholder must be a national, resident, or business established in the UK or EU (as relevant) to benefit from the right.
So far, so straightforward. But here’s where it gets risky.
Assigning the right to a non-qualifying person or company
If a database right is assigned to an entity that does not meet the relevant qualifying criteria, the right automatically ceases to exist from the date of assignment.
This means:
You don’t have partial protection.
You don’t have limited enforcement options.
You have no right at all.
This consequence is automatic and irreversible under current law.
Why this is a hidden trap
It’s easy to overlook this when structuring assignments – especially in cross-border deals. It’s not uncommon for a UK or EU company to assign IP rights (including database rights) to a parent company, or to transfer rights as part of an internal reorganisation. But if that parent company is in, say, the US or Switzerland, and the database right goes with it – that right is extinguished the moment the assignment takes effect.
There’s also no grace period, no warning letter, and no option to reverse it after the fact.
Practical implications
If you’re managing IP portfolios that include databases, particularly those used for customer insights, scraping, pricing, or aggregation, you should:
Check whether any database rights are currently assigned to non-qualifying entities.
Ensure any future assignment keeps the right within the UK or EU, as appropriate.
Include a carve-out or separate treatment of database rights in global IP assignment agreements.
If you’ve already made an assignment to a non-qualifying entity, you may have lost protection entirely. That could be material if the database has commercial or strategic value.
What does this mean?
This is a rare example of an IP right that self-destructs if it’s not held by the right person. It’s easy to overlook – especially when database rights sit quietly alongside better-known IP assets like copyright, trade marks or patents.
But if you want to keep your database rights alive, make sure they stay put – within the UK or EU.
To find out more about the issues raised in this blog contact Rosie Burbidge.
