International News Service v. Associated Press
Facts
Associated Press and International News Service were direct competitors in gathering and distributing news to newspapers for profit. INS admittedly took news from AP members' publicly posted bulletins and early newspaper editions, sometimes bodily and sometimes after rewriting, and transmitted it to INS customers for publication in competing newspapers. Because news moved generally from east to west and telegraph transmission was rapid, INS could republish AP's news in western papers as early as or earlier than AP-served papers. AP alleged this practice let INS profit from news AP had gathered through substantial expenditure of labor, skill, organization, and money.
Issue
May a competing news service be restrained from taking news from another service's bulletins or early newspaper editions and selling it to its own clients while the news still has commercial value? More specifically, does such conduct constitute unfair competition even if the news is not protected as absolute property against the public after publication?
Rule
Although uncopyrighted news of current events may be common property as against the public upon publication, as between competing news-gathering organizations the news may be treated as quasi-property. A competitor commits unfair competition when it appropriates that time-sensitive news, gathered by another at substantial cost, and uses it for commercial gain in direct competition before the news's commercial value has passed away. Taking a rival's published items merely as tips to investigate and verify independently is distinct from bodily appropriation without independent investigation.
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