By Jonathan Stempel
NEW YORK, May 16 (Reuters) - Dow Jones & Co has won a courtorder to stop the London-based service Ransquawk frombroadcasting its news content within seconds of publication,without permission, to traders and other subscribers.
It is unclear how the permanent injunction granted lateThursday by U.S. District Judge Jesse Furman in Manhattan willbe 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 oneof 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 feedsof breaking news, including market-moving news.
Dow Jones accused Ransquawk of "nearly instantaneouslycutting, pasting, and broadcasting" content from DJX, aweb-based platform bundling news from Dow Jones Newswires, TheWall Street Journal, Factiva and other sources. It said thisallowed Ransquawk to offer a "pirated product" at a cheaperprice.
Furman ordered Ransquawk to stop gathering Dow Jones contentwithout permission, and disseminating it prior to publication onwebsites for the Journal, Barron's or MarketWatch, or in printform. He also ordered an inquest to determine damages. Dow Joneshad sought $5 million.
"We feel that Dow's case against us is unconstitutional inas far as it precludes free speech," Ranvir Singh, Ransquawk'schief executive, said in an email. "If we are guilty of [hotnews misappropriation] then so are a multitude of other newsaggregators." Singh added that fighting the case "would bankruptus as a company."
A Dow Jones spokeswoman had no immediate comment.
According to Ransquawk's website, "8/10 of the world'slargest banks" use Ransquawk, in such areas as equities, fixedincome, 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 hotnews. Then in June 2011, a federal appeals court in New Yorksaid Theflyonthewall.com had not misappropriated hot news bypublishing rating changes by Barclays Plc, Bank ofAmerica Corp and Morgan Stanley stock analysts.
Dow Jones competes with Reuters in providing real-time newsand information.
The case is Dow Jones & Co v. Real-Time Analysis & News Ltd,U.S. District Court, Southern District of New York, No.14-00131. (Editing by Bernadette Baum)