NFL Antitrust: What it Means for the Sports Video Game Industry

[shotgun styles]

Quote: Originally Posted by The.Nacirema.Dream

As a law student who is currently studying antitrust law, I would like to shed some light on the situation. The sole issue here is the trial courts finding, and the 7th Circuit Court of Appeals affirmation, that the NFL and its 32 teams are a "single entity," ie. akin to a parent corporation and a wholly-owned subsidiary. If found to be so, section 1 of the Sherman Act, which outlaws "every contract, combination in the form of trust or otherwise, or conspiracy..." by definition cannot apply because for a section 1 violation there has to be two or more parties working in concert. By contrast, section 2 of the Sherman Act outlaws "monopolizing or attempting to monopolize" by a single entity. American Needle also brought a claim under section 2 (which was also rejected), however that issue is not going to be argued in front of the Supreme Court if they decide to take the case (It is currently under guidance of the Solicitor General). The last case the Supreme Court decided using the "single entity" theory was in 1984 (Copperweld Corp. v. Independence Tube Corp.). Since then, lower courts have stretched the "single entity" theory to various other business arrangements, ie. affiliated companies involved in joint ventures. The Supreme Court expressing an interest in this case is in all likelihood a signal that lower courts have gone too far in their findings, and the Supreme Court will clarify the doctrine. Most likely the NFL will be found to be a single entity, as the "NFL can only function as one source of economic power when collectively producing NFL football." Other arrangements that single entity immunity has been extended to, however, may not be as lucky.

If you read post #2, this is what I said, but minus the legal-speak.

[marcoyk]

It would be great if we got many options for video games. As the monopoly idea goes, competition makes a better product. Realistically, EA could release a mediocre Madden game , and it would probably outsell any other company's title. I'm 15 years old, and I haven't heard of anybody owning a football game other than Madden. If three companies were producing NFL football games, then we'd surely see some great games.
I've bought Madden 2004, 2005, 06, 07 for two systems, 08, 09, and there's about a 99% chance that I'm going to buy Madden 10. But if the teams were split up... strong considerations of not buying a Madden game for the first time since i was 9.

[boston_sports_maniac]

Madden is just fine with me. I would do anthing to play madden on xbox 360 or ps3. but I am stuck with the dumb old wii. You 360/ps3 owners really dont't know who good you have it.

[marcoyk]

I felt your pain. I used to only have a Wii and i was forced to get my sports games fill on the wii. I bought nba live 08 for wii... i started laughing about how much of a horrible product it was. Controls: move, shoot, jump, pass. that's it. then i got a 360 and came a little. i've played my wii maybe 5 times in the year that i've had my 360.

[ballaspence9493]

tht would b so lame if there was one conference in one game and then another in another game. hopefully, it'll never come to this

[TheCreep]

Quote: Originally Posted by boston_sports_maniac

Madden is just fine with me. I would do anthing to play madden on xbox 360 or ps3. but I am stuck with the dumb old wii. You 360/ps3 owners really dont't know who good you have it.

I'm with ya. I love it. Most folks do actually. 2010 is going to be the year!

[bears5122]

I don't see where you guys are getting this "only half the teams in the game". The NFL acts as a single entity. The issue is limiting who they sell the rights to, not whether each team owns their individual trademark.

The only change that we would see is other game companies being given the right to purchase the licensing agreement to the NFL and NFLPA. That is how it was done for decades. The stuff about not having the rights to every team is just scare mongering that EA is filtering through the pipes to save face on PR.

I know that the complaint argues about the individual teams, but a judgment against the NFL would simply force them to open up the license to other companies. A much easier solution for them than granting each team individual rights.

[2krules]

Quote: Originally Posted by CreatineKasey

^^^ LOL at poster above me! (Edit: I was talking about 2krules' post about not liking half the teams)

Gotta have someone for the teams I do like to beat the snot out of.