Baseball (MLB) Loses Landmark Fantasy Lawsuit

Any fantasy baseball fans out there may have heard of a lawsuit between a company called CBC Distribution & Marketing and Major League Baseball Advanced Media.

The gist of the case is that MLB wants to license the use of players and stats in fantasy games (for a very steep fee). Until recently, almost anyone could run a fantasy sports game because player names and stats were considered public domain and published in newspapers, magazines, etc.

Recently, MLB has tried to force operators of fantasy sports games to license the use of this data and the cost of a license is so high that only the major players (ESPN, Fox Sports, etc.) can afford to do so.

While none of the other major sports have tried this, it was safe to say that if MLB won this case, the other sports would certainly want to earn money on fantasy sports games as well, effectively limiting the fantasy offerings to a slim few.

Today, the fantasy sports community got some GREAT NEWS according to latest Fantasy Sports Trade Conference Newsletter:

CBC IS GRANTED SUMMARY JUDGEMENT IN MLBAM SUIT

United States Magistrate Judge Mary Ann L. Medler gave a strong opinion today in the CBC vs. MLBAM lawsuit, siding strongly with CBC on every point about the players' rights of publicity. The decision strongly states that major league players do not have a right of publicity in their names and playing records as it pertains to fantasy games and that CBC did not violate the players' rights of publicity. The decision will likely have an impact in other fantasy sports beyond baseball.

The judge's conclusion that was filed today is as follows:

The court finds that the undisputed facts establish that the players do not have a right of publicity in their names and playing records as used in CBC's fantasy games and that CBC 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 further finds that the undisputed facts establish that the names and playing records of Major League baseball players as used in CBC's fantasy games are not copyrightable and, therefore, federal copyright law does not preempt the players' claimed right of publicity. Additionally, the court finds that the no-challenge provision of the 2002 Agreement between CBC and the Players' Association and the provision of this Agreement which prohibits CBC from using players' names and playing records after the expiration of the Agreement are unenforceable based on public policy considerations. The court finds, therefore, that declaratory judgment should issue in CBC's favor. As such, the court will order the Players' Association and Advanced Media to refrain from interfering with CBC's fantasy games in the manner proscribed by this court's decision.

Accordingly, IT IS HEREBY ORDERED that CBC's Motions for Summary Judgment are GRANTED;
[Doc. 72, Doc.107]
Case 4:05-cv-00252-MLM Document 131 Filed 08/08/2006 Page 47 of 49
40 The court clarifies that this Memorandum Opinion only applies to those aspects of
CBC's website which are before the court.
48
IT IS FURTHER ORDERED that the Players' Association and Advanced Media not
interfere with CBC's using players' names and playing records on its website and in its fantasy baseball games in the manner presented in this case;40 [Doc. 1]
IT IS FURTHER ORDERED that the Motion for Summary Judgment filed by the Players' Association is DENIED; [Doc. 44]
IT IS FURTHER ORDERED that the Motion for Summary Judgment filed by Advanced
Media is DENIED; [Doc.87]
IT IS FURTHER ORDERED that the counterclaims filed by Advanced Media are
DISMISSED; [Doc. 7]
IT IS FURTHER ORDERED that the counterclaims filed by the Players' Association are DISMISSED; [Doc. 26]
IT IS FURTHER ORDERED that a separate judgment shall be entered which incorporates by reference this Memorandum Opinion.
/s/Mary Ann L. Medler
MARY ANN L. MEDLER
UNITED STATES MAGISTRATE JUDGE

Officials at CBC were ecstatic with the decision and feel that 18 months of fighting for their survival has been justified not only for themselves but for the entire industry.

"The defining moment in the fantasy sports industry has been decided in favor of the fantasy player," said Charlie Wiegert, a principal owner of CDM Fantasy Sports. "It's a huge win for the fantasy industry."
MLBAM could appeal the decision, but Wiegert said this "is a pretty strong precedent."

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	Player Stats are Public Domain, Says Court	Ars Technica	Thu Aug 10	0
	Court Says Fantasy Baseball Games Can Go On	ksdk.com	Wed Aug 9	0