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October 17, 2007
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CDM Sees Another Legal Victory Over MLBPA In Fantasy Dispute

Appellate Court Upholds Ruling In
Favor Of CDM Fantasy Sports
CDM Fantasy Sports yesterday gained another legal victory over the MLBPA and MLBAM when the U.S. Court of Appeals for the Eighth Circuit affirmed an August '06 summary judgment in Missouri allowing the commercial use of MLB player names and statistics for fantasy games without a license. In a 2-1 decision, the court ruled, "The facts in this case barely, if at all, implicate the interests that states typically intend to vindicate by providing rights of publicity to individuals. ... We hold that [CDM's] first amendment rights in offering its fantasy baseball products supersede the players' rights of publicity."  "We're obviously thrilled. Our client is happy, but more than that, an entire industry is celebrating," said Rudy Telscher, an attorney representing CDM.  MLBPA Dir of Communication Greg Bouris said late yesterday, "We're disappointed and we're reviewing our options." MLBAM execs have not yet commented on the decision.

WHAT NEXT? MLBAM and the union have three primary options going forward: drop the case entirely, seek to have the matter heard before the U.S. Supreme Court, or petition to have the entire appeals court rehear the case. Telscher said he expects one of the latter two options to be pursued, even as both have significant obstacles to victory. "Even if they're down by six runs in the bottom of the ninth, you have to think they're going to try to take their last at-bats," Telscher said. "They have a lot of resources, and they're obviously very invested in this. But from where we sit, we've won. We don't have to do anything unless they elect to make a move." 

SUPPORT GROUP: MLB and the union had been aided by amicus brief filings by most of the country's major sports properties, including the NFLPA, NFL Ventures, NHL Enterprises, NBA Properties, PGA Tour and NASCAR. To that end, the ruling is expected to have significant effects on the entire sports licensing business. "This strong follow-up statement by the courts will help drive new investment in fantasy sports, accelerate growth and open new opportunities for everyone from small businesses to major corporations," said Jeff Thomas, president of the Fantasy Sports Trade Association, which had filed an amicus brief in support of CDM.

MORE REAX: Fantasy Sports Magazine editor Greg Ambrosius said that the series of legal victories over MLB "sends a message that 'statistics are in the public domain."  Charlie Wiegart, co-Founder of CMD parent CBC, said the ruling could have a "catastrophic effect" on fantasy licensing fees. Wiegert: "Now other people will question whether they do or don't have to pay [licensing fees to sports properties]" (USA TODAY, 10/17).  

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