“Second Circuit: You Make It, They Can Break It: The Fly on the Wall Eludes the Ghost of INS v. AP”
The Second Circuit’s long awaited “hot-news” decision in Barclays Capital, Inc. et al. v. TheFlyOnTheWall.com, Inc. reversed a district court’s ruling in favor of Barclays, Merrill Lynch and Morgan Stanley (“the Firms”), allowing TheFlyOnTheWall.com to freely republish the Firms’ recommendations that it obtains from public sources outside of the Firms. In a lengthy opinion, the Second Circuit held that the Copyright Act preempts the Firms’ misappropriation claims under New York State law.
This Stroock Special Bulletin discusses the Court’s decision, in which the Court found the Firms’ claims were not “hot-news” type misappropriation claims, which survive preemption.