| NEW YORK
NEW YORK May 16 Dow Jones & Co has won a court
order to stop the London-based service Ransquawk from
broadcasting its news content within seconds of publication,
without permission, to traders and other subscribers.
It is unclear how the permanent injunction granted late
Thursday by U.S. District Judge Jesse Furman in Manhattan will
be enforced. This is because Ransquawk did not contest the Jan.
9 lawsuit, prompting Dow Jones to seek a default judgment.
The case by Dow Jones, a unit of News Corp, is one
of a handful to invoke the "hot news" misappropriation doctrine,
where news providers try to stop aggregators from getting a
"free ride" on their journalism.
Ransquawk, whose full name is Real-Time Analysis & News Ltd,
operates a "squawk" service that broadcasts audio and text feeds
of breaking news, including market-moving news.
Dow Jones accused Ransquawk of "nearly instantaneously
cutting, pasting, and broadcasting" content from DJX, a
web-based platform bundling news from Dow Jones Newswires, The
Wall Street Journal, Factiva and other sources. It said this
allowed Ransquawk to offer a "pirated product" at a cheaper
Furman ordered Ransquawk to stop gathering Dow Jones content
without permission, and disseminating it prior to publication on
websites for the Journal, Barron's or MarketWatch, or in print
form. He also ordered an inquest to determine damages. Dow Jones
had sought $5 million.
"We feel that Dow's case against us is unconstitutional in
as far as it precludes free speech," Ranvir Singh, Ransquawk's
chief executive, said in an email. "If we are guilty of [hot
news misappropriation] then so are a multitude of other news
aggregators." Singh added that fighting the case "would bankrupt
us as a company."
A Dow Jones spokeswoman had no immediate comment.
According to Ransquawk's website, "8/10 of the world's
largest banks" use Ransquawk, in such areas as equities, fixed
income, foreign exchange, energy and metals.
In November 2010, Dow Jones said it received a "substantial"
amount from Briefing.com in another case alleging misuse of hot
news. Then in June 2011, a federal appeals court in New York
said Theflyonthewall.com had not misappropriated hot news by
publishing rating changes by Barclays Plc, Bank of
America Corp and Morgan Stanley stock analysts.
Dow Jones competes with Reuters in providing real-time news
The case is Dow Jones & Co v. Real-Time Analysis & News Ltd,
U.S. District Court, Southern District of New York, No.
(Editing by Bernadette Baum)