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The doctrine of hotnews is not new. It was first articulated by the United States Supreme Court in 1918, before the Copyright Act was passed. Back then, news was communicated by wire services. The major competitors were the Associated Press and the International News Service. Associated Press journalists produced news articles and sent them to their affiliated newspapers throughout the country. This allowed them to get the word out about a story and make it hot news. By the mid-1920s, there were thousands of wire services.
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The Second Circuit has decided that a “hot news” misappropriation claim isn’t equivalent to exclusive copyright rights, as the NBA argued. The court also found that the NBA failed to prove that its “hot news” misappropriation claim failed to establish any “exclusive” copyright rights. Therefore, it’s important to remember that this ruling does not necessarily mean that all claims against hot news can be dismissed. Instead, the Supreme Court is clear that the NBA is entitled to the compensation it received.