PIABA Downloads Entire SAC Library of Arbitration Awards
Lawsuit Pending Between PIABA and CCH and SAC
[Ed. This article is from 2001 and is presented for historical purposes]
The Public Investors Arbitration Bar Association (PIABA) has informed SAC that it has downloaded from the NASD Portal virtually all of the 26,000 Arbitration Awards in the SAC-CCH Awards Network (SCAN) Library by use of a robotics software.
The NASD Portal is an Internet site operated by CCH and SAC for purposes of assisting NASD Dispute Resolution, Inc. in enhancing public and party accessibility to its Awards (and those of select other forums); the NASD Portal was launched in June 2001.
The Library or Awards collection has been gathered by SAC over the past dozen years and contains Awards of both active and some inactive forums; many of these Awards are not available anywhere else in the marketplace.
Reportedly, members attending PIABAs 10th Annual Conference and Meeting in Amelia Island, FL (10/18-20) were given a private presentation on PIABA’s coup. CCH Incorporated reacted to the news with a letter, dated October 24, 2001, to PIABA’s new President, Philip M. Aidikoff. In the letter, CCH asserted that PIABA’s “actions are in violation of the intellectual property rights of [CCH and SAC]” and proposed that PIABA “ not take any action with respect to the electronic data files ” Instead, it suggested, PIABA could “[e]nter into a license agreement with CCH for the data in question.”
That letter is an Exhibit to a Complaint filed in the District Court of New Jersey on October 29, 2001, captioned PIABA v. CCH Incorporated and Securities Arbitration Commentator, Inc., in which PIABA seeks a declaratory judgment that its downloaded database “does not violate any rights claimed by defendants.”
In the Complaint, PIABA states that “it created its Database by downloading all of the publicly-available Awards on the SAC/CCH web site.” It describes generally how it did so, mentions the CCH letter, asserting that it has been threatened with litigation, and asks the Court for a “judicial declaration” in its favor.
PIABA issued a contemporaneous Press Release, in which it announces the action and the new “database,” which “consists in part of awards from the database of awards on [the Portal.]” The database was created, Mr. Aidikoff is quoted as saying, because “[t]he design of the SAC Database was so cumbersome that our members found themselves all but forced to send money to SAC simply to get copies of arbitration awards that were supposed to be publicly available. This has resulted in greater cost to wronged investors who are pursuing recovery .”
CCH has issued its own Press Release, dated October 31, 2001, in which it promises to “aggressively oppose and seek prompt legal resolution of an attempt by [PIABA] to misappropriate, duplicate and sell to PIABA members the proprietary and copyrighted SAC-CCH Awards Library.” CCH also reports that SAC “will join in supporting CCH’s effort .”
CCH Associate Publisher Peter Berkery is quoted as saying that “[t]he complexities of the electronic information marketplace cannot simply be set aside by PIABA. With little demonstrated concern for the legal or ethical implications, the organization has lifted a significant percentage of the intellectual property developed and maintained by SAC and CCH with plans to use it solely for its own financial gain.”
(SAC Ref. No. 01-44-01.) (SAC Ed: FYI, the Reference file contains copies of the PIABA Complaint, the CCH letter, and the PIABA and CCH Press Releases.)
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Nothing herein is intended as legal or financial advice. The law is different in different jurisdictions, and the facts of a particular matter can change the application of the law. Please consult an attorney or your financial advisor before acting upon the information contained in this article.
Mark J. Astarita is a veteran securities attorney representing investors and financial professionals nationwide in securities investigations and arbitrations. Have a question? Email him at firstname.lastname@example.org, call his office at 212-509-6544, or visit The Securities Lawyer
Mark Astarita is a nationally recognized securities attorney, who represents investors, financial professionals and firms in securities litigation, arbitration and regulatory matters, including SEC and FINRA investigations and enforcement proceedings.
He is a partner in the national securities law firm Sallah Astarita & Cox, LLC, and the founder of The Securities Law Home Page - SECLaw.com, which was one of the first legal topic sites on the Internet. It went online in 1995 and is updated daily with news, commentary and securities law related links.