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See also Misappropriation. The notion of a common law misappropriation cause of action originated with the Supreme Court's pre-Erie24 decision in International News Service v. Associated Press, 248 U.S. 215, 236-40, 39 S. Ct. 68, 63 L. Ed. 211 (1918), in which the Supreme Court concluded that defendant had misappropriated plaintiff's East Coast 'hot news' stories by publishing the stories on the West Coast. McCarthy § 10:48. The International News Service decision, however, purported to 'establish a principal of federal common law,' and Erie eliminated federal common law in diversity cases. Barclays Capital Inc. v. Theflyonthewall.com, Inc., 650 F.3d 876, 894 (2d Cir. 2011). As such, International News Service is 'no longer good law.' Id. For the same reason, the Virginia Supreme Court's decision in Benjamin T. Crump Co., Inc. v. J. L. Lindsay, Inc., 130 Va. 144, 107 S.E. 679, 679-80 (Va. 1921), which addressed the impact of International News Service on unfair competition doctrine, is not authoritative. The Crump decision is noteworthy, however, because the Supreme Court of Virginia declined to expand the Virginia law of unfair competition beyond its traditional limits to encompass common law misappropriation claims. Id. at 679-80, 684. ...
