Law note · California
Balboa Insurance Co. v. Trans Global Equities
California Court of Appeal decision establishing the state's common-law misappropriation doctrine, requiring a plaintiff to show: (1) substantial investment of time and money in developing an intangible asset; (2) defendant's appropriation at little or no cost; and (3) resulting injury to plaintiff.
This doctrine underpins California hot-news misappropriation claims for time-sensitive news content, but its scope is substantially curtailed by 17 U.S.C. ยง301 federal copyright preemption whenever the misappropriated material falls within the subject matter of copyright, leaving only a narrow residual category for facts or time-sensitive information not themselves independently copyrightable.
Primary source: Von Dran Legal
University of Cincinnati Law Review vol. 79; Harvard Berkman Center misappropriation doctrine analysis