Fantasy Leagues Can Use MLB Players, Stats Without License
|
CDM Sports Wins Lawsuit Against MLBAM
|
Judge Mary Ann Medler of the U.S. District Court for the Eastern District of Missouri
ruled yesterday in favor of St. Louis-based CDM Sports, which last year sued MLBAM
in an effort to gain legal protection from using MLB player names and statistics
without a license, issuing
a summary judgment in the case. MLBAM argued the commercial use of such data
without a license was a breach of its rights, obtained last year from the MLBPA.
But Medler ruled, “The undisputed facts establish that the players do not have
a right of publicity in their names and playing records as used in [CDM’s] fantasy
games and that [CDM] has not violated the players’ claimed right of publicity.
The court further finds, alternatively, that even if the players have a claimed
right of publicity, the First Amendment takes precedence over such a right. The
court will order the MLBPA and MLBAM to refrain from interfering with CBC’s [CDM’s
parent] fantasy games in the manner proscribed by this court’s decision.” CDM
co-Founder and VP Charlie Wiegert: "We felt all along this wasn't a protected
use, that we didn't need a license to run our game, and the court said that in
just about every way, shape and form. And for them to also say explicitly for
MLBAM and the players association not to interfere with our games, that's a bonus.”
MLBAM can appeal the decision (Eric Fisher, SportsBusiness Journal). MLBAM
Senior VP/Corporate Communications Jim Gallagher said of a possible appeal, “We’re
in the process of reviewing the decision. We’ll be in contact with our partners,
the [MLBPA], before commenting further” (USA TODAY, 8/9).
NO MORE CHERRY PICKING: In DC, Tim Lemke reports the ruling “shoots down
MLBAM’s attempts to pick and choose which companies have the right to use player
names and statistics for fantasy games.” CBC was one of the “world’s largest fantasy
sports companies,” but it lost most of its market share after “losing contracts
with USA Today, CBS Sportsline and other big media firms, who were wary of partnering
with a company unlicensed by the league” (WASHINGTON TIMES, 8/9). USA TODAY’s
Michael McCarthy notes MLB “slashed its roster of licensed [fantasy] operators
to seven from 20, dropping many smaller companies in the process.” Wiegert said
MLB licenses cost around $2.5M this season. Wiegert “hopes the ruling will help
smaller operators among the 300 or so companies offering fantasy games stay in
business -– and make the NFL, NBA, NHL and NASCAR think twice before charging
big money for fantasy stats.” Wiegert: “This will be a defining moment in the
fantasy sports industry. The other leagues are all watching this case. If MLB
prevailed, it just would have been a matter of time before they followed up” (USA
TODAY, 8/9). In L.A., Greg Johnson reports MLB had sold licenses for $2M each
to companies like ESPN, Yahoo and CBS SportsLine. Former N.Y. Times Public Editor
and founder of the first rotisserie league Dan Okrent said of yesterday’s ruling,
“The only thing that saddens me about it is that there won’t be a public trial,
during which MLB’s incredible greed would have been on public display” (L.A.
TIMES, 8/9).
BROADER FANTASY IMPACT: Legal observers and fantasy league experts said
that the ruling “could force a restructuring of the broader fantasy sports industry
-– and might have implications for other information that can be repackaged to
generate profits online” (L.A. TIMES, 8/9). CNBC’s Darren Rovell reported
the ruling “puts all leagues that charge for the rights to use players’ names
for fantasy games in jeopardy. Given the growth of fantasy sports, insiders say
that could mean $100(M) in lost income over the next decade” (“On The Money,”
CNBC, 8/8).
|
Related Stories By Company
|
Related Stories By Sport
|
Astroturf To Be MLB Synthetic Turf Provider
February 5, 2010 :
SportsBusiness Daily
Stats To Be MLB's Real-Time Data Licensor
February 4, 2010 :
SportsBusiness Daily
MLB Teams Can't Make Players Donate
February 4, 2010 :
SportsBusiness Daily
MLB Helps Ease Players' Move To Spotlight
February 1, 2010 :
SportsBusiness Daily
MLB Franchise Notes
January 29, 2010 :
SportsBusiness Daily
|
Cactus League Opposes Legislation For Cubs
February 8, 2010 :
SportsBusiness Daily
Astroturf To Be MLB Synthetic Turf Provider
February 5, 2010 :
SportsBusiness Daily
Stats To Be MLB's Real-Time Data Licensor
February 4, 2010 :
SportsBusiness Daily
MLB Teams Can't Make Players Donate
February 4, 2010 :
SportsBusiness Daily
Twins Ready For Weather At New Venue
February 3, 2010 :
SportsBusiness Daily
|
|
