Associated Press v. All Headline News [1]

On January 14, 2008, the Associated Press (AP) sued All Headline News (AHN), W. Jeffrey Brown, the owner of AHN, and Danielle George, a senior editor for AHN.  The AP claims that AHN is illegally copying and rewriting stories by AP reporters and distributing the stories to clients and displaying the stories on the AHN website [2].  The AP is seeking to restrain AHN from further distribution of AP material and to recover unspecified damages.

The AP is a not-for-profit membership corporation that describes itself [3] as the oldest and largest news agency in the world, employing about 3,000 reporters, and distributing news content to thousands of radio and television stations, newspapers, and internet news portals.  AHN is a Florida-based company that describes itself [4] as "a leading provider of news, weather, and other content for web sites, wireless, digital signage, interactive applications, broadcast and print use."  The AP's complaint [5] alleges that AHN does not employ its own reporters, and instead instructs its writers to copy or rewrite breaking news stories found on the Internet. 

The AP's complaint specifically identifies six articles written by AP reporters, claiming that AHN "copied some or all of the expression contained within" the articles, and then transmitted the articles to AHN customers and displayed the articles on the AHN website.  The AP claims that these and similar practices have infringed their copyright "hundreds if not thousands of times."  The AP claims these practices also violated their quasi-property right in breaking news under the New York common law tort of hot news misappropriation.  The AP also alleges that AHN intentionally removed the AP's name from some news reports, constituting impermissible altering or removing of copyright management information under the DMCA.  AP's amended complaint [5] also includes claims for trademark infringement, unfair competition in violation of the Lanham Act, unfair competition in violation of New York Common law, and breaches of contract. 

On February 17, 2009, Judge P. Kevin Castel, of the United States District Court for the Southern District of New York, granted AHN's motion to dismiss the trademark claim, finding that it lacked factual support.  Judge Castel also dismissed the claim of unfair competition under the Lanham Act, finding that AHN can legally claim that it maintains a "news division" even if they do no original reporting.  Judge Castel declined to dismiss the other claims, most notably finding that hot news misappropriation was a recognized cause of action under New York law. 

Update:

3/19/09 - The parties agreed to pursue private mediation.

6/15/09 - The court dismissed [6] claims after the parties reached a settlement. According to a subsequent press release [7], AHN paid an unspecified sum to settle the case and "agreed that [it] would not make competitive use of content or expression from AP stories."  AHN also acknowledged that "there were many instances in which AHN improperly used AP's content without AP's consent" and that "the tort of 'hot news misappropriation' has been upheld by other courts and was ruled applicable in this case by U.S. District Court Judge P. Kevin Castel."