Intellectual Property Law

Sports and the Law: Supreme Court Might Hear Dispute Over Fantasy Sports Property RightsAbovethelaw.com

On Friday, February 22, Major League Baseball Advanced Media, L.P. (?MLBAM?) and the Major League Baseball Players Association (?MLBPA?) filed a petition for a writ of certiorari to the U.S. Supreme Court (No. 07-1099), seeking to overturn the Eighth Circuit Court of Appeals? ruling that the first amendment protects free use of baseball players? names and statistics in fantasy sports games. MLBAM and the MLBPA both contend that the Eighth Circuit?s ruling fails to properly balance important concerns about state-law publicity rights against first amendment interests.

The original case, C.B.C. Distribution and Marketing, Inc. v. Major League Baseball Advanced Media, L.P., emerged from a change in MLBPA policy regarding the licensing of player names to fantasy sports businesses. The district-court plaintiff, C.B.C. Distribution and Marketing, Inc. (?CBC?), for over ten years had licensed directly from the MLBPA major league baseball player names for use in fantasy sports contests. Then, in 2005, the MLBPA decided not to renew CBC?s license?instead granting an exclusive right to use baseball players? names to MLBAM ?for exploitation via all interactive media." MLBAM thereafter launched its own fantasy baseball contest on its website MLB.com and refused to grant a sublicense to CBC. This led CBC to file suit.

CBC originally filed suit in the District Court for the Eastern District of Missouri, which granted it summary judgment, holding that CBC?s fantasy games did not infringe on any state-law publicity rights that belonged to major league baseball players. The Eighth Circuit affirmed on other grounds, finding that while CBC was indeed infringing on major league baseball players? publicity rights, CBC?s ?first amendment rights in offering its fantasy baseball products supersedes the players? rights of publicity.? The Eighth Circuit based its ruling on three factors: (1) fantasy baseball statistics are already in the public domain; (2) major league baseball players are already ?rewarded, and handsomely;? and (3) there is no danger that any consumers would be misled into believing the use of players? names represents a product endorsement.

Discussion picks up, after the jump.

Full post as published by IP Law Daily on March 04, 2008 (boomark / email).