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Copyright of previous public domain

I am currently negotiating with an electronic database vendor who has
included in their license copyright restrictions on government documents
that were previous public domain in print form.  The vendor argues that
all contents of their database are copyrighted, and do not want to delete
like license clause.  This concerns me because our patrons are used to
these documented being free from copyright.  But even more distressing -
this issue brings up a bigger problem of third party copyright
restrictions of any electronic contents, and whether libraries can fight

I would like to know how anyone has handled a similar case, and especially
if anyone has been able to get electronic content vendors to changes such
restrictions.  What was the outcome, and how have you handled this sort of
third party copyright restriction of electronic content?

Kalletta Lofts