Paper Industry Trade Journals Settle Suit

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(AP) Two online paper industry trade journals have settled a lawsuit over whether reporters or the publications that employ them own sources.

Last June, Delaware-based Paperloop sued Forestweb and three journalists for allegedly misusing confidential information.

The employees quit their jobs at Paperloop, went to work for Forestweb, and then wrongfully used sources they met at their first jobs, Paperloop said.

Forestweb, which supplies online news and information about the forest products industry, had asked the judge to dismiss the case. He refused.

After several early rounds in court and a mediation session, Paperloop agreed to drop the charges.

“It’s a victory for us,” said Diane Keaton, editor of Forestweb.

Paperloop chief executive Ian Johnston said he dropped the case because he feared he was only “pouring money down a legal drain,” but he asserted the case was about intellectual property that went beyond mere sourcing.

“That’s a crock,” Neil Shapiro, attorney for Forestweb, told the San Francisco Chronicle. “Somebody tried to stop reporters from using their sources and eventually gave up. … I’d say the press did all right.”

E&P Online has a content exchange agreement with Forestweb.

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