Supreme Court Case May Impact EA's NFL Exclusive

March 5, 2009 -

A non-gaming case currently before the United States Supreme Court stands to have a massive impact on the video game industry.

The case is American Needle vs New Orleans Saints, et al. Should the Supreme Court find in favor of plaintiff American Needle, an apparel manufacturer, EA's exclusive NFL licensing deal and Take-Two's third-party exclusive with Major League Baseball could be found in violation of federal antitrust (i.e., monopoly) statutes. Such a determination would free other publishers to make games based on the NFL and MLB.

SCOTUSblog, which tracks happenings before the Supreme Court, reports on the case:

The NFL used to license American Needle to sell hats that bore the logos, the names or other insignia of pro football teams... But, in 2000, the NFL opted to solicit bids for an exclusive license to produce caps and other headwear. Reebok won the bidding, and in 2001 got an exclusive ten-year license. American Needle’s license was not renewed. So it sued the NFL, all of its teams, NFL Properties, and Reebok.

American Needle’s case was thrown out by lower courts... “The [Supreme] Court has stated, on more than one occasion,” American Needle asserted, “that application of the Sherman Act to professional sports teams is wholly consistent with Congressional inent...”

What happened to American Needle in relation to apparel is essentially what happened to Take-Two in regard to its excellent NFL2K series when EA scored its exclusive license with the NFL in 2004.

Attorneys for EA are clearly tracking the American Needle case. The phrase "American Needle" appears nine times in a transcript of arguments made by attorneys last November in Pecover vs. Electronic Arts, a class-action suit which alleges that consumers were hurt by EA's NFL exclusive (see: Spirited Courtroom Argument Highlights Madden Monopoly Case).

SCOTUSblog reports that the Supreme Court has requested government lawyers to weigh in on the case.

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Comments

Re: Supreme Court Case May Impact EA's NFL Exclusive

Submitted by PHX Corp on Fri, 03/06/2009 - 11:40.

I'm Rooting for the Exclusivity Deals to be dropped by the supreme court(That'll Teach EA and T2 a lesson for hogging the NFL and MLB)

Watching JT on GP is just like watching an episode of Jerry springer only as funny as the fights

America has just became its own version of the Jerry Springer Show after a bizarre moment in Florida involving a carnival worker.

Re: Supreme Court Case May Impact EA's NFL Exclusive

Submitted by ecco6t9 on Fri, 03/06/2009 - 02:55.

This wouldn't be a good thing.

It's the same as saying that McDonalds has no right to the Big Mac.

Private Bussiness is private the last thing we need in this time is more branches of government saying what can and can't be done, and guess what this works for these industries since the NFL,EA, or Take 2 haven't asked for a bailout.

Re: Supreme Court Case May Impact EA's NFL Exclusive

Submitted by Haethos on Thu, 03/05/2009 - 22:54.

I'd love to see these exclusive deals get dissolved. Take Two has done an awful job with the MLB license on 360, and I'd love to see "The Show" come to 360.

Bottom line is that competition creates better products. I'm all for that.

Re: Supreme Court Case May Impact EA's NFL Exclusive

Submitted by Stoli on Thu, 03/05/2009 - 19:45.

Um, shouldn't the NFL have the right to say who can and can't use their IP?

Re: Supreme Court Case May Impact EA's NFL Exclusive

Submitted by chregan on Thu, 03/05/2009 - 17:47.

Wouldn't the NFL teams, players, and logos, fall under IP? IP holders have a right to give exclusive rights to anyone they so choose.

Re: Supreme Court Case May Impact EA's NFL Exclusive

Submitted by Harry Miste on Thu, 03/05/2009 - 19:01.

I think the use of the players, teams and logos for the purpose of a football-themed... thing... is protected by the IP.

| XBOX LIVE GamerTag: Harry Miste | Steam ID: Harry Miste | PSN ID: HarryMiste |

Re: Supreme Court Case May Impact EA's NFL Exclusive

Submitted by Haethos on Thu, 03/05/2009 - 22:52.

I believe it counts as IP, but EA has exclusive deals with the NFL and the NFLPA (as well as the coaches union I believe); the former for the use of the team logos, stadiums, etc. and the latter to use the names of the players.

Re: Supreme Court Case May Impact EA's NFL Exclusive

Submitted by PHX Corp on Thu, 03/05/2009 - 17:30.

I think the Supreme court Justices are going to make fun of the fact that EA held a monopoly on NFL games Heres the possiblility

John Roberts: We the court has found that American needle has been found in violation of the Sherman and Clayton Acts and therefore we demand that the company should be split up

EA & T2: We're F@**ED, we may have to share the license of MLB and NFL now

END TSG-esce courtroom reenactment

Watching JT on GP is just like watching an episode of Jerry springer only as funny as the fights

America has just became its own version of the Jerry Springer Show after a bizarre moment in Florida involving a carnival worker.

Re: Supreme Court Case May Impact EA's NFL Exclusive

Submitted by Michael Chandra on Thu, 03/05/2009 - 16:12.

"Every person who shall monopolize, or attempt to monopolize, or combine or conspire with any other person or persons, to monopolize any part of the trade or commerce among the several States, or with foreign nations, shall be deemed guilty of a felony"

Hm... I guess they can make a point there. I wonder what statements those are though.

Re: Supreme Court Case May Impact EA's NFL Exclusive

Submitted by insanejedi on Thu, 03/05/2009 - 15:44.

I don't think that the EA+NFL or 2K+MLB suit would work out because it's a temporary exclusive. On top of that, I belive for any anti-trust suit to pass through the product being tested must also prove to be necessary for moderen society. The previous anti-trust suits are on the following of two basis. Lack of competition+Need for modern society. With Oil there is an obvious need for that product in modern society, with phones there was a need for it in modern society, and for OS software there is a need for it in modern society. NFL and MLB does not fill this area, so I highly doubt it will go through.

Re: Supreme Court Case May Impact EA's NFL Exclusive

Submitted by Ondore on Thu, 03/05/2009 - 19:49.

The deal before the courts involves a temporary exclusive, though.

Re: Supreme Court Case May Impact EA's NFL Exclusive

Submitted by mikese on Sun, 06/21/2009 - 18:54.

I'm sure there will be a counterclaim though if it doesnt pass.

Re: Supreme Court Case May Impact EA's NFL Exclusive

Submitted by insanejedi on Fri, 03/06/2009 - 11:24.

which means this probebly wont pass.

Shout box

prh99: Also there is no story in rational and respectful discussion (where you can find it).10/19/2014 - 10:44am

prh99: Well they are probably doing it on Twitter and probably the GG hashtag so any voice reason gets drowned out by idiocy. Also it's far easier to broad brush a group.10/19/2014 - 10:41am

Wonderkarp: dont fool yourself, Technogeek. Remember Mass Effect 3? How about the ferver against Phil Fish?10/19/2014 - 10:18am

MechaTama31: None of which is the fault or responsibility of the people who are not trolling, harassing, threatening, doxxing, etc. So why is their opinion hostage to the people who are?10/19/2014 - 10:06am

Technogeek: If the developer were male there wouldn't have been a "conversation" in the first place.10/19/2014 - 2:27am

Monte: trolls are just at their absolute worst when it comes to women and feminist. You could bet good money that if the developer were male the trolls would be silent and the conversation would actually focus on the journalism.10/18/2014 - 9:18pm

Monte: Papa: Not the first time we've had a journalism scandals before, but the harassment never got close to this level; the difference with this scandal is that feminists are involved. Without the feminist angle, their would be A LOT less harrassment10/18/2014 - 9:15pm

Papa Midnight: Monte: That's honestly rather short-sighted. As has been proven with other persons who have been targeted, if it wasn't Quinn, it would be someone else.10/18/2014 - 6:26pm

Avalongod: I think that's part of what gives an esoteric news story like this real life...it taps into a larger narrative about misogyny in society outside of games.10/18/2014 - 3:29pm

Avalongod: @Monte, well the trolls made death threats that came to police (and media attention). I think this is tapping into a larger issue outside of games about how women are treated in society (like all the "real rape" stuff during the last election)10/18/2014 - 3:28pm

Wonderkarp: Zippy : Havent tried the PS4 controller. might later.10/18/2014 - 2:37pm

Monte: Seirously, If Quinn was not involved and GG was instead about something like the Mordor Marketing contracts, the trolling would have never grown so vile and disgusting. There have been plenty of movements in the past that never sufferred from behavior..10/18/2014 - 1:57pm

Monte: We have seen scandel's before but the trolling has never been as vile as what we see with GG. Trolls usually have such a tiny voice you can barely notice them, but its like moths to a flame whenever femistist are involved.10/18/2014 - 1:53pm

ZippyDSMlee: Wonderkarp: You might be able to if you had a PS4 controller.10/18/2014 - 1:00pm

MaskedPixelante: http://store.steampowered.com/app/327940/ Night Dive starts charging for freeware.10/18/2014 - 12:21pm

Matthew Wilson: the sad thing is there are trolls on both sides of this. people need to stop acting like their side is so pure.10/18/2014 - 12:19pm

MechaTama31: So, only speak out on a scandal that hasn't attracted trolls? I wouldn't hold my breath...10/18/2014 - 10:49am

Monte: I feel like GG just needs to die. The movement is FAR to tainted by hatred and BS for it to be useful for any conversation. Let GG die, and then rally behind the NEXT gaming journalism scandal, and start the conversation fresh.10/18/2014 - 10:33am

quiknkold: and we dont have a Dovakin to call a cease fire10/17/2014 - 7:37pm

quiknkold: The whole thing is Futile. Both sides are so buried deep in their trenchs that there isnt a conversation. Its just Finger Pointing, Name Calling, Doxxing, Threats. there needs to be a serious conversation, and GG isnt it.10/17/2014 - 7:37pm

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