AP’s “Breaking News” Are Quasi-Property and Protectible – NY District Court

Holding:

Citing a 1918 Supreme Court decision, the U.S. District Court for the Southern District of New York ruled that plaintiff Associated Press’ (“AP”) breaking news (sometimes described as “hot news”) is the “quasi property” of a news-gathering organization like AP, and thus subject to protection against a competitor’s interference. According to the district court, allowing one news agency to appropriate and profit from the work of another would render publication unprofitable. Additionally, the district court rejected defendant All Headline News Corp.’s (“AHN”) assertion that AP’s claim of misappropriation of hot news should be considered under the law of Florida, and not New York, and that it is preempted by the federal Copyright Law. The district court explained that AP’s cause of action remains viable under New York law, and the Second Circuit in a previous case has unambiguously held that it is not preempted by federal law. On the basis of the foregoing, the district denied AHN’s motion to dismiss.

Detailed Summary:

This action arose out of the activities of AHN, an online venture that disseminates news reports to customer web sites, including reports of breaking news.

In its amended complaint, AP described itself as “one of the world’s oldest and largest news organizations” and “the ‘gold standard’ of objective journalism.” Opinion, p. 1.

AP brought this action alleging that defendants – AHN, AHN Media Corp., W. Jeffrey Brown, and Danielle George (collectively, “AHN”)—have engaged in “free riding” on the AP’s news articles. Specifically, it alleged that defendants have unlawfully copied and altered AP news stories in violation of the federal Copyright Act,…

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