Motorola, Inc. (Motorola) (defendant), in conjunction with Sports Team Analysis and Tracking Systems (STATS) (defendant), manufactures and markets the SportsTrax paging device. The device is designed provide real-time updates on professional basketball games in progress. All basketball games are administered by the National Basketball Association (NBA) (plaintiff). NBA brought a state law suit against Motorola and STATS for misappropriation of “hot news.” The misappropriation claim was based on International News Service v. Associated Press, 248 U.S.215 (1918) (INS). At trial, the issue arose as to whether INS-like state law claims were preempted by the federal Copyright Act passed in 1976. The trial judge held that such claims are not preempted and issued a permanent injunction against Motorola and STATS. The parties appealed.