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In the KVOS, Inc. v. Associated Press case of 1936, the Supreme Court ruled in favor of The Associated Press (AP), affirming that it had a right to protect its news stories from unauthorized use by others during the period of their commercial value. The dispute arose when KVOS, a radio station based in Washington state, started broadcasting AP's news bulletins without permission or payment shortly after they were released to subscribing newspapers on the west coast. In response to this infringement on its copyright and unfair competition laws, AP filed suit against KVOS for damages and an injunction prohibiting further unauthorized broadcasts. The court held that although facts themselves cannot be copyrighted as per common law principles; however, if one spends money and labor compiling them into original form such as a news article then they have exclusive rights over it for some reasonable time after publication under federal copyright laws. This decision was significant because it established legal protection for journalists' work product from being used without authorization or compensation during its immediate newsworthy lifespan.
In the dissenting opinion for KVOS, INC. v. Associated Press, Justice McReynolds disagreed with the majority's decision to uphold an injunction against a radio station that was using news from AP without permission or payment. He argued that this case should not be considered as one of unfair competition because there is no direct competition between a wire service and a radio broadcaster; they are fundamentally different mediums serving different audiences at different times. Furthermore, he contended that allowing such an expansive interpretation of property rights over news could lead to monopolistic control and stifle free speech in violation of public policy and constitutional principles.