Evening star., 1933-04-09
NEWS BROADCAST
SUIT WON BY A. P.
"Pirating" of Items by South
Dakota Station Is Hit by
U. S. Judge.
BY the Associated Press.

BY the Associated Press.
SIOUX FALLS, S. OAK, April g.
The Associated Press was absolved OF
charges of monopoly, discrimination and
unfair competition in findings of fact
and conclusions of law filed in Federal
District Court today as a result of its
suit to prevent a local radio station
from using its news dispatches without
authorization.
The ruling confirmed earlier decisions
by Federal Judges James D. Elliott, an
nounced from the bench in two differ
ent hearings, and was filed to clarity
the record in the event of an appeal
from the temporary injunction which
restrained Station KSOO from '.pirat-
ing" Associated Press news.
Judge Elliott issued the injunction
March IA, supplanting the temporary
of the suit against the Sioux Falls
Broadcast Association, which operates
Station KSOO. Odin Davis Of counsel
for the broadcast association said an
appeal would be taken to the United
States Circuit Court of Appeals. The
date for filing such an appeal expires
April IA.
Overrules Stations Contentious.
In his findings and conclusions, Judge
Elliott overruied all contentious set
forth by the broadcast companys in
cluding one that the Associated Press
was operating IN unreasonable restraint
OF interstate commerce, and held the
bylaws of the, organization proper
and constituting a reasonable and
legitimate safeguard for its news re-
port.
Provisions of the bylaws recurring
memoers to furnish local news ex-
clusively to the Associated Press and
its members, the findings said, amount
only to a requirement of undivided
loyalty and service on the part of a
news correspondent, and considering
the nature and necessity Of the bust
ness, such requirement Is reasonable
The court does not find any ef-
fort by complainant to achieve a
monopoly; that complainant does not
operate unreasonably in restraint OF
interstate commerce"
Broadcasting Of news by other radio
stations, the court held, did not con-
stitute discrimination against the To-
cal station. The bylaws of the As
sociated Press, it was held, did not per-
NIT broadcast of entire news items
such as have been read over the local
station, but limited broadcasts to bull
letinS or "a bare statement in a few
words of the nature of the news article. y
Terms Broadcas.s Violation.
The court finds" the ruling said
that any such broadcasts as made by
the defendant, whether made by the
defendant or others, have been In viola
tion OF said rules and regulations and
have not been with the consent, either
expressed or implied, of complainant.
It added that If in any instance Q
member Of complainant has consented
to such broadcasts as have been made
by defendant, such consent has beer
unauthorized; that so far as appeared
upon such hearing, there has been nc
discrimination or unfair competition
by complainant and its members
against defendant"
Under conditions existing In the ter.
ritory served by Ksoo, the findings held
| news gathered by the Associated Press
has and continued to retain a value tc
complainant and complainant's member.
for not less than "a hours after frs,
publication thereof In a newspaper
which is member of complainant
| fendant in SO appropriating said news
| NSAAoWSaeSo dAiAoA NOAAtNtitAOll Wy NC
| fendant against complainant and COM
plainant's members, that the same
causes great and irreparable injury te
complainant and that defendant in.
tended to continue said practice unles.
| enjoined and restrained from doing so. ;
Unfair Competition"
| In his conclusions, based on the find
| ings Of fact, Judge Elliott ruled thai
the Associated Press and its member,
are equitably entitled to enjoy and real
the benefits Of their industry, effort.
and expenditures In the gathering an1
obtaining of said news" that the un
authorized use of its dispatches by th'
radio station constitutes unfair compe
tition and that equity will protect tn.
| association and its membership "a
against such unfair competition"
Therefore, the court held, the Asso
ciated Press was entitled TO preliminar,
injunction prohibiting the radio station
from pirating, appropriating, using o
disseminating to the general publ
through broadcasts or announcement
news gathered and obtained through
the labor and expenditure" of the or
ganization or its members ''for not les
than "A hours after first publication" u