Legal Issues
The FSTA has been at the forefront of the tension that has existed between fantasy sports companies and professional leagues and players associations over the rights to player profiles and statistics. The issue came to a head with the lawsuit of Major League Baseball Advanced Media, MLB's Internet wing, vs. St. Louis-based CBC Distribution and Marketing Inc., the parent company of CDM Sports. When CBC was denied a new licensing agreement with MLBAM (they had acquired the rights from the baseball players' association ) for its fantasy baseball game, CBC filed suit.
The FSTA filed a friend of the court brief in support of CBC arguing that intellectual property laws and so-called "right of publicity" laws do not apply to the statistics used in fantasy sports. The FSTA also argued that if MLBAM won the lawsuit it would have a dramatic impact on the industry, which was largely ignored by the major sports leagues for years while a number of smaller entrepreneurs grew it into a multi-billion dollar industry, and a ruling could allow the MLBAM to have a monopoly over the industry.
"This will be a defining moment in the fantasy sports industry," said Charlie Wiegert, executive vice president of CBC. "The other leagues are all watching this case. If MLB prevailed, it just would have been a matter of time before they followed up. Their player unions are just waiting for the opportunity."
CBC won the lawsuit as U.S. District Court Judge Mary Ann Medler ruled that statistics are part of the public domain and can be used at no cost by fantasy companies.
"The names and playing records of major-league baseball players as used in CBC's fantasy games are not copyrightable," Medler wrote. "Therefore, federal copyright law does not pre-empt the players' claimed right of publicity."
The 8th Circuit Court of Appeals upheld the decision in October 2007. "It would be strange law that a person would not have a First Amendment right to use information that is available to everyone," a three-judge panel said in its ruling.
Read more about this topic: Fantasy Sports Trade Association
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