Effectively, the argument is about whether:
a) a leak by the director effectively declassifies the information (so that anyone should be able to view it)
or
b) a leak by the director effectively grants some limited security clearance to the reporter (so that only they should be able to view it)
Since a leak to a reporter by its very nature implies that the information is to be disseminated, it makes more sense that scenario a is what is actually going on, but the judge seems to have chosen scenario b.
Option B is complete BS