Also known as: misappropriation doctrines · misappropriation
Written by attorneys · grounded in primary & secondary sources — see below
A doctrine that imposes liability for the unauthorized commercial use of another's identity or time-sensitive information. The doctrine treats such use as an unjust exploitation that invades a property-like interest in the plaintiff's name, likeness, or news-gathering efforts.
Maya Malik, a retired athlete, discovered that Mirage Hotels had published a book-length account of her career to promote a new resort chain without her consent. The hotel chain sold the book and used excerpts in its advertising. Malik sued for misappropriation of her identity. The court held that the commercial exploitation of her life story gave rise to liability even without defamation.
Mustafa Mahmoud, a partner at a law firm, learned from a client that another associate had diverted client settlement funds into a personal account. The client asked Mahmoud not to report the matter. Mahmoud nevertheless disclosed the misconduct to disciplinary authorities. The court held that the reporting obligation prevailed over the client's request for confidentiality.
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Marcus Mitchell, a solo practitioner, transferred client trust funds into his operating account to cover office expenses, intending to repay the money later. No client suffered a loss and Mitchell had an unblemished record. The court ordered disbarment, holding that knowing misappropriation of entrusted funds warrants the sanction regardless of repayment intent or absence of harm.
Mercury Industries gathered breaking financial data through its own reporters and sold the information to subscribers under strict release schedules. Matrix Technologies copied the data from early bulletins and retransmitted it to its own West Coast clients before the scheduled release. Mercury sued. The court held that the systematic appropriation of time-sensitive news constituted misappropriation.
Meridian Motors opened a chain of restaurants using a distinctive color scheme, layout, and signage nearly identical to those of Mirage Hotels' successful chain. Mirage sued under trade-dress principles. The court examined whether the imitation created a likelihood of confusion that effectively misappropriated the source-identifying features developed by Mirage.
Mason McCarthy, a minority shareholder in Meridian Motors, alleged that the majority had diverted corporate resources to a new venture benefiting only the controlling family. McCarthy claimed the diversion constituted misappropriation of corporate opportunities. The court evaluated whether the allocation breached duties owed to all shareholders.
No. Liability arises from the unauthorized commercial exploitation itself. Courts focus on the defendant's unjust enrichment and the invasion of the plaintiff's property-like interest rather than on whether the plaintiff suffered measurable damages.
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The hot-news doctrine protects time-sensitive factual information that copyright does not cover. Recovery is available only while the information retains commercial value as breaking news and only against free-riding competitors who copy the facts without incurring the original gathering costs.
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No. Knowing misappropriation of entrusted funds results in disbarment regardless of the lawyer's asserted intent to borrow or to repay. The violation undermines public confidence in the profession even when no client ultimately loses money.
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…pursuant to these provisions, Rule 10b-5 and Rule 14e-3(a). Two prime questions are presented. The first relates to the misappropriation of material, nonpublic information for securities trading; the second concerns fraudulent practices in the tender offer setting. In particular, we address and resolve these issues: (1) Is a…