Corporate & Securities Law

Oral Argument in American Needle

By David Fischer

You can read the transcript here.  From Lyle Denniston’s report on the always excellent SCOTUSBlog:

The Court heard 70 minutes of oral argument in American Needle v. NFL (08-661), a case that supposedly was to focus on a single, simple question: is the NFL, along with its 32 teams, a ?single entity? and therefore immune to the Sherman Antitrust Act when they act jointly in a business effort? But Justice after Justice insisted strenuously that that is not really the issue, and that the case probably needs to go back to the lower courts for a potentially penetrating inquiry into what kinds of commerce are closely enough related to pro football itself that they escape antitrust liability.

The specific kind of activity under legal attack in the case is the joint effort of the NFL and its teams to sell, through only one dealer, hats, jerseys, and other fan gear displaying the teams? trademarked logos.  While the NFL insists that that is crucial to promoting the popularity of the games on the field, it did not appear that any Justice was firmly convinced ? right now ? of that.  From the bench, for example, came the question of whether the NFL could escape antitrust liability if it decided, jointly, to build houses.  While the NFL?s lawyer said that would not promote the game, Chief Justice John G. Roberts, Jr., shot back, reciting the other side?s contention that selling trademarked goods was closer to selling houses than it was to promoting football games.  And that, it seems, is precisely the issue that would dominate a subsequent trial on the legality of joint selling of fan goods.

The whole post is worth reading.

Share on Facebook

Full post as published by Antitrust Review on January 13, 2010 (boomark / email).