SIFMA Tells Court Online Service Liable For Misappropriation of Brokers’ Research

An online financial news services that disseminated financial services firms’ equity research recommendations properly was held liable for copyright infringement and “hot news misappropriation” the Securities Industry and Financial Markets Association urged in a July 22 amicus curiae brief to the U.S. Court of Appeals for the Second Circuit (Barclays Capital Inc. v. Theflyonthewall.com Inc.).

Calling the defendant’s conduct “an example of an industry-wide problem affecting many SIFMA Members,” the association warned that absent protection from such practices, broker-dealer firms “will have substantially less economic incentive to produce equity research and recommendations, which would also deprive investors of ...