IP Update, Vol. 14, No. 7, July 2011- Part 2

Edited by Paul Devinsky and Rita Weeks

COPYRIGHTS / PREEMPTION

"Hot News" Cannot Be Enjoined Under Misappropriation Claim

by Paul Devinsky

In a case that attracted significant amici attention, the U.S. Court of Appeals for the Second Circuit, invoking the copyright law principal of preemption, vacated an injunction against an internet news service that was based on a tort claim of misappropriation.  Barclays Capital, et al. v. TheFlyOnTheWall.com, Case No. 10-1372 (2d Cir. June 20, 2011) (Sack, J.) (Raggi, J., concurring). 

The FlyOnTheWall.com (Fly) operates a subscription-based electronic news service that compiles security firms' stock recommendations.  Fly tries to obtain and release recommendations as soon as they are released by the security firms to clients.  The plaintiffs (a group of security brokerage firms) sued Fly, alleging that Fly's republication of their recommendations violated copyright law and was also a misappropriation under New York