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542 F.2d 1116 SDC DEVELOPMENT CORPORATION, Plaintiff-Appellant,v.F. David MATHEWS, Secretary of Health, Education andWelfare, et al., Defendants-Appellees. No. 75-3717. United States Court of Appeals,Ninth Circuit. Sept. 29, 1976.Rehearing and Rehearing En Banc Denied Nov. 17, 1976. J. D. Frascella (argued), Santa Monica, Cal., for plaintiff-appellant. Michael Kimmel, Atty. (argued), of Civil Div., Appellate Sec., U.S. Dept. of Justice, Washington, D.C., for defendants-appellees. Before TRASK, GOODWIN and KENNEDY, Circuit Judges. ANTHONY M. KENNEDY, Circuit Judge: 1 In this case of first impression we consider whether a complete reference library of medical writings and publications, accumulated and stored in a computer data bank by an agency of the federal government, constitutes "agency records" for the purposes of the Freedom of Information Act (FOIA), 5 U.S.C. § 552, and must therefore be made available to the public for a nominal charge limited to the direct costs of search and duplication, id. § 552(a)(4)(A). We hold that it does not and affirm the judgment of the district court. 2 In 1944 Congress established the National Library of Medicine "(i)n order to assist the advancement of medical and related sciences, and to aid the dissemination and exchange of scientific and other information important to the progress of medicine and to the public health . . . ." 42 U.S.C. § 275. The functions of the library are to acquire and preserve medical publications, index and catalogue the materials, make the indexes and catalogues available to the public, and provide such other research assistance as furthers the purposes of the statute. Id. § 276. The statute authorizes the Secretary of Health, Education and Welfare, with the advice and recommendation of the Board of Regents of the National Library of Medicine, to charge the public for using the services and materials. § 276(c)(2). 3 One of the services provided by the library pursuant to its statutory mandate is the Medical Literature Analysis and Retrieval System (MEDLARS), a computerized system for storing, indexing, and retrieving medical bibliographical data. The core of the system consists of the MEDLARS tapes, on which are stored citations and abstracts of two million articles from approximately 3000 medical and scientific journals published throughout the world. The National Library continually updates these tapes. 4 The MEDLARS system is used in various ways by the library. Some of the stored information is printed in various medical bibliographies, e.g., Index Medicus, which are distributed worldwide. Direct access to the MEDLARS data bank is available on a subscription basis through MEDLINE, the National Library's on-line terminal reference retrieval system.1 A user desiring to require and copy the MEDLARS tapes may purchase the complete data bank through the National Technical Information Service;2 the current charge for the tapes is $50,000.3 The district court found that this charge was established in an attempt to recover some of the $10 million, which to date is the cost of preparing the MEDLARS data base.4 5 Appellant, SDC Development Corporation, neither subscribed to the MEDLINE system nor offered to purchase the MEDLARS