Law note · United States (federal only)
Barclays Capital Inc. v. Theflyonthewall.com, Inc.
cite 650 F.3d 876 (2d Cir. 2011)
stage IN FORCE in force since 2011-06-20
The Second Circuit reversed the district court and held that Barclays' hot-news misappropriation claim against a financial news aggregator that redistributed analyst recommendations was preempted by the Copyright Act.
The court narrowed the NBA v. Motorola test: a defendant must itself 'endeavor to free-ride on the plaintiff's gathering efforts,' and merely redistributing information already gathered is insufficient to survive ยง 301 preemption, largely confining viable hot-news claims to situations where the defendant competes in the gathering itself.
Primary source: FindLaw Second Circuit
decision date confirmed from search results as 2011-06-20