On March 18th, the Southern District of New York found that a defendant committed state law "hot-news misappropriation" by rapidly disseminating a plaintiffs' equity research analysis through unauthorized channels. After the defendant conceded that its use of the plaintiffs' equity research analysis constituted federal copyright infringement, the Court addressed whether a state law action existed for "hot-news misappropriation." It concluded that New York recognizes such a cause of action, that the claim is not preempted by federal law, and that the plaintiffs established the defendant's liability for hot-news misappropriation for a narrow category of conduct: free-riding activity that is directly competitive to the plaintiffs' production of time-sensitive information, which threatens plaintiffs' incentive to continue in the business. Barclays Capital Inc v. Theflyonthewall.com.