Publishing/Writing: Insights, News, Intrigue


Publishing Espionage, Continued

Ahhh, the dark world of publishing espionage is getting downright dizzying!

After filing a lawsuit against McGraw-Hill (refer to my post of 9/28/10 More on Publishing Espionage), Reed Business Information publishers (RBI) has had a lawsuit filed against itself for “misconduct” by another construction information publisher, BidClerk Inc.

Even more from FOLIO magazine’s Jason Fell:

The proverbial table has been turned for Reed Business Information. Following a suit its Reed Construction Data unit brought against rival McGraw-Hill Construction Dodge, the publisher is now facing a lawsuit brought against it by construction information service provider BidClerk Inc.

According to the complaint, filed in Minnesota U.S. District Court, BidClerk alleges that a series of “denial of services” attacks were directed against its online system, flooding it with “millions of page views.” It also alleges that a “click fraud’” scheme aimed at BidClerk’s paid advertisements generated “hundreds of thousands” of invalid clicks and impressions on its ads.

BidClerk claims the attacks originated from an IP address belonging to RBI. Meanwhile, RBI denies BidClerk’s allegations that it, or any of its employees, “intentionally engaged in internet activity designed to harm BidClerk.” It says it will “vigorously” defend itself against these claims.

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More on Publishing Espionage

I initially posted on the espionage lawsuit filed against McGraw-Hill by Reed Construction Data publishers on 11/25/2009: McGraw-Hill Fights RBI’s Espionage Lawsuit and again on 12/16/2009: Reed Expands ‘Espionage’ Lawsuit Against McGraw-Hill

Here’s the latest intrigue unfolding in this publishing business drama.

Folio Magazine’s Jason Fell, who has been following this espionage court case, updates his initial reports:

Court Dismisses Three Counts in Reed ‘Espionage’ Case Against McGraw-Hill Construction

A New York U.S. District Court judge has ruled in favor of McGraw-Hill Construction Dodge to dismiss three of the counts brought against it last year by competitor Reed Construction Data alleging corporate espionage, among other things.

Specifically, the ruling dismisses the counts alleging violation of the New York General Business Law consumer fraud statute, violation of the Racketeer Influenced and Corrupt Organizations Act (RICO) and conspiracy to violate RICO. The ruling was filed on September 14. The litigation concerning the remaining eight counts is ongoing.

“We are very pleased with the judge’s ruling dismissing the RICO claims and state law consumer fraud claim and remain confident that we will prevail on the merits with respect to the remaining counts in the litigation,” McGraw-Hill Construction says in a statement e-mailed to FOLIO:.

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McGraw-Hill Fights RBI’s Espionage Lawsuit

I TOLD you there was intrigue in the publishing industry!
A great account of the latest in this espionage lawsuit is given by Jason Fell of FOLIO magazine:

McGraw-Hill has filed a motion to dismiss five counts of misconduct brought against it in a lawsuit filed last month by Reed Construction Data, a unit of b-to-b publisher Reed Business Information. The suit charges corporate espionage, among other things.

The motion was filed Friday by McGraw-Hill in U.S. district court in New York.

Reed’s 60-page complaint alleges that McGraw-Hill’s Dodge Construction division unlawfully accessed confidential and secret trade information from RCD by hiring consultants to subscribe to RCD’s confidential data, using made up names and fake companies. It also alleges that Dodge manipulated the RCD information to create “misleading comparisons” between Dodge and RCD’s products and services “in an attempt to mislead the marketplace.”

McGraw-Hill’s motion requests that the court dismiss the counts alleging misappropriation of confidential information, tortious interference with prospective economic advantage, violation of New York General Business Law, violation of the Racketeer Influenced and Corrupt Organizations Act (RICO) and conspiracy to violate RICO.

The motion, however, did not request the dismissal of the other counts alleging fraud, misappropriation of trade secrets, unfair competition, monopolization, and others.

“We will address those allegations as part of our response to the entire lawsuit,” a McGraw-Hill spokesperson told FOLIO:. It was not immediately clear, however, exactly when or how the company would issue a formal response.

Construction President Out

On November 9, McGraw-Hill announced to staff that longtime McGraw-Hill Construction president Norbert Young had left the company. Glenn Goldberg, president of McGraw-Hill Information & Media would assume responsibility for the construction group, assisted by Robert Stuono, the group’s senior vice president and general manager.

The spokesperson declined to say if Young’s departure was related to the Reed lawsuit, saying that as a policy the company does not comment on personnel issues.

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