SCOTUS Sacks NFL’s Claims of Antitrust Immunity

May 24, 2010 -

The Supreme Court of the United States has ruled against the Nation Football League (NFL) in terms of specific antitrust language, which emerged from a lawsuit brought against the sports entity by apparel manufacturer American Needle.

American Needle had charged that the NFL’s exclusive apparel agreement with Reebok limited competition, violated the Sherman Act and led to higher prices for consumers. American Needle further charged that an agreement between NFL Properties (NFLP) and Reebok did not allow the company to negotiate apparel agreements with individual teams.

In its decision (PDF), authored by retiring Justice Stevens, SCOTUS unanimously reversed a lower court’s ruling, and, according to SCOTUS Blog, “cleared the way Monday for trial of a lawsuit against the joint marketing of the right to use the teams’ logos and trademarks on consumer goods.”

The decision hinged around Section 1 of the Sherman Act, which dictates, “Every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the several States, or with foreign nations, is declared to be illegal.”

In the decision, Stevens wrote “We conclude that the NFL’s licensing activities constitute concerted action that is not categorically beyond the coverage of §1 [Section 1].”

Between 1963 and 2000, NFLP granted nonexclusive licenses to a “number of vendors,” including American Needle. December of 2000 saw NFL Properties formed and a 10-year exclusive headwear deal for all 32 teams granted to Reebok. American Needle’s license was not renewed.

While the NFL had argued that “by forming NFLP, they have formed a single entity, akin to a merger, and market their NFL brands through a single outlet,” Stevens wrote, “An ongoing §1 violation cannot evade §1 scrutiny simply by giving the ongoing violation a name and label.”

A few more choice tidbits:

Although NFL teams have common interests such as promoting the NFL brand, they are still separate, profit-maximizing entities, and their interests in licensing team trademarks are not necessarily aligned.

It may be, as respondents argue, that NFLP “has served as the ‘single driver’’ of the teams’ “promotional vehicle,” “‘pursu[ing] the common interests of the whole.’” But illegal restraints often are in the common interests of the parties to the restraint, at the expense of those who are not parties.
 

As the SCOTUS Blog further noted, “The Court also did not decide whether the NFL did in fact act illegally in this specific marketing effort.”

If, in a forthcoming trial, it is ruled that the NFL did act illegally, LawsofPlay (earlier this year) outlined a scenario of what such a ruling could mean for the videogame world:

While this could lead to more competition in the sports gaming markets, it could also lead to really wonky arrangements–imagine EA releasing an NFL game with 20 NFL teams and a dozen or so fantasy teams to round out the roster while 2K releases a game with the 12 NFL teams missing from EA’s game and a handful of its own fantasy teams.


Thanks BearDogg-X!!


Comments

Re: SCOTUS Sacks NFL’s Claims of Antitrust Immunity

The NFL never had anti trust immunity I don't think.

The only two I can think of are Majore League Baseball, and the insurance industry, which was hopefully yanked, and I won't cry for MLB fi theirs is yanked.

Re: SCOTUS Sacks NFL’s Claims of Antitrust Immunity

I am with LawsofPlay here. It would be great if individual teams could market themselves to any company, I don't think it will translate as well for games.

Sure a single team could allow for more than one company to make a game using their logo and players, but who really wants to play Vikings Football. People want to play the whole roster of teams.

In the end, this might work out well for merchandise like shirts, hats, coats, bobble-heads etc, but not do much for games.

E. Zachary Knight
Oklahoma City Chapter of the ECA
http://www.theeca.com/chapters_oklahoma

Re: SCOTUS Sacks NFL’s Claims of Antitrust Immunity

I don't think it'll work out too well for merchandising, either, since, as I understand it, the team owners wanted a single entity to make those decisions.  Now, they're being told that was illegal, forcing every team to do their own merchandising.

---

With the first link, the chain is forged.

--- With the first link, the chain is forged.
 
Forgot your password?
Username :
Password :

Poll

Which video game platform are you most thankful for?:

Shout box

You're not permitted to post shouts.
MaskedPixelantehttp://www.nintendolife.com/news/2014/11/two_tetris_downloads_to_be_removed_from_the_3ds_eshop_in_europe Tetris to be removed from the 3DS VC at the end of the year in Europe. Other regions unknown, but will probably all happen too.11/28/2014 - 9:16am
Andrew EisenThe story you just linked to? The story you asked if anyone had seen? Yes, THAT obnoxiousness. I've heard it parroted for nearly two years now.11/27/2014 - 7:57pm
ZippyDSMleeAndrew Eisen: That shes an ex con man?11/27/2014 - 7:54pm
Andrew EisenI've heard the same obnoxious horse poo for years. It's nothing new.11/27/2014 - 7:45pm
ZippyDSMleeAlso anyone see this? http://guardianlv.com/2014/11/anita-sarkeesian-unmasked-feminist-icon-or-con-artist/11/27/2014 - 7:28pm
ZippyDSMleeEvil within is a badly designed game.11/27/2014 - 7:28pm
Andrew EisenSure but you said "widens," hence my confusion. Looking into it, yep, there's a tweak to completely re-frame the image, adding more info at the top and bottom. You apparently need a fairly beefy rig to keep it running smooth when you do that though.11/27/2014 - 6:48pm
Matthew Wilsonthere is vertical fov, not just horizontal fov11/27/2014 - 6:38pm
Andrew EisenWell, you can widen it to 3:1 or even 10:1 but I don't know why you'd want to. From what I understand it's the missing visual info at the top and bottom that some object to, not that there isn't enough on either side.11/27/2014 - 6:36pm
Matthew WilsonI think it widenss the fov, so you get to see more.11/27/2014 - 6:31pm
Andrew EisenI don't see how as doing so would not add any visual information to the top or bottom of the screen.11/27/2014 - 6:04pm
Matthew Wilsonfrom what I read, getting rid of the black bars and stretching it out made for a better play experience.11/27/2014 - 5:59pm
Andrew EisenFrom what I hear, there's a ton of "look up and shoot at the guys above you" stuff in the game that the wider frame doesn't accommodate such actions well.11/27/2014 - 5:55pm
Andrew EisenHaving a game run in scope is not necessarily a bad thing but like any aspect ratio, you have to compose your shots correctly.11/27/2014 - 5:55pm
Neo_DrKefkaThe Evil Within was pretty bad and to make it worse the way the screen size made it hard for you to see even on a big screen it really hurt the game. Being Artistic is great but when you focus on art rather than what sells you run the risk of that happen11/27/2014 - 5:33pm
Matthew WilsonI kinda hope this is not true. http://www.nintendolife.com/news/2014/11/nintendo_might_not_be_making_more_gamecube_controller_adapters_at_the_moment11/27/2014 - 1:34pm
Matthew WilsonI saw that. I wish people would stop preording, but sadly that will never happen.11/27/2014 - 1:26pm
Papa MidnightUbisoft has cancelled the Season Pass for Assassin's Creed: Unity (http://www.reddit.com/r/pcmasterrace/comments/2ni2ac/ubisoft_cancel_season_pass_for_ac_unity/)11/27/2014 - 1:08pm
NeenekoBut now I can use the christmas discount justification too,11/27/2014 - 11:46am
NeenekoI am also sorely temped by Civ:BE, mostly because I have a demo coming up and I know my productivity will tank.11/27/2014 - 11:45am
 

Be Heard - Contact Your Politician