Fleer - Legal Battles

Legal Battles

This left Fleer with no product in either baseball or football. The company now turned its efforts to supporting an administrative complaint filed against Topps by the Federal Trade Commission. The complaint focused on the baseball card market, alleging that Topps was engaging in unfair competition through its aggregation of exclusive contracts. A hearing examiner ruled against Topps in 1965, but the Commission reversed this decision on appeal. The Commission concluded that because the contracts only covered the sale of cards with gum, competition was still possible by selling cards with other small, low-cost products. However, Fleer chose not to pursue such options and instead sold its remaining player contracts to Topps for $395,000 in 1966. The decision gave Topps an effective monopoly of the baseball card market.

In 1968, Fleer was approached by the Major League Baseball Players Association, a recently organized players' union, about obtaining a group license to produce cards. The MLBPA was in a dispute with Topps over player contracts, and offered Fleer the exclusive rights to market cards of most players starting in 1973, when many of Topps's contracts would expire. Since this was so far in the future, Fleer declined the proposal.

Fleer returned to the union in September 1974 with a proposal to sell 5-by-7-inch satin patches of players, somewhat larger than normal baseball cards. By now, the MLBPA had settled its differences with Topps and reached an agreement that gave Topps a right of first refusal on such offers. Topps passed on the opportunity, indicating that it did not think the product would be successful. The union, also fearing that it would cut into existing royalties from Topps sales, then rejected the proposal.

In April 1975, Fleer asked for Topps to waive its exclusive rights and allow Fleer to produce stickers, stamps, or other small items featuring active baseball players. Topps refused, and Fleer then sued both Topps and the MLBPA to break the Topps monopoly. After several years of litigation, the court ordered the union to offer group licenses for baseball cards to companies other than Topps. Fleer and another company, Donruss, were thus allowed to begin making cards in 1981. Fleer's legal victory was overturned after one season, but the company continued to manufacture cards, substituting stickers with team logos for gum.