MLBPA loses fantasy sports lawsuit (thankfully!)

In a huge win for the Fantasy Sports industry  the 8th U.S. Circuit Court of Appeals panel, in a 2-1 decision, ruled that CBC Distribution and Marketing Inc. (CDM Sports) doesn't have to pay licensing fees to MLB for using players names in the fantasy sports games it produces.  The full text of the article is at ESPN. 

This has been an ongoing issue for the two years I have been involved with the industry.  As a member of the Fantasy Sports Trade Association (FSTA), I attend the twice a year conferences in Las Vegas and there is always at least one panel with the lawyers talking about the CDM lawsuit.  Basically the MLBPA claimed that any fantasy sports company had to license the right to use players names and statistics for any fantasy sports game.  CDM, and the entire industry, contended that this was publicly available information and that the MLBPA had no rights to force CDM to license that information.

Well, in my opinion (I am a lawyer by training, so a little qualified to render an opinion here) MLBPA was WAY out of bounds and acting in a typically overreaching manner by training to force fantasy players to license.  They contended that the players have a "Right of Publicity" and that fantasy sports appropriate players names and statistics for commercial gain.   CDM contended that this is publicly available information and thus no "right of Publicity" exists, that the information is not being used as any form of endorsement and that the first amendment precludes any rights claimed by MLBPA.

The FSTA even hired Wilson, Sonsini, one of the top law firms in Silicon Valley to file what is called an Amicus Brief on behalf of the industry.  We all had a lot riding on this, and as outrageous as the MLBPA claims were, a loss would cripple the industry and give the pro league unions a monopoly on fantasy sports. 

Well, the MLBPA has gotten spanked twice in court now.  The first time the judge dismissed the lawsuit on all counts by Summary Judgment. That basically means (for those of you who don't watch Boston Legal) that she refused to even HEAR the case because the claims were so worthless.  The Appeals Court basically backed her up and said "Tough luck" to MLBPA.

So we can all breath a bit easier now and know that our beloved fantasy games are, for the moment, safe from the clutches of the professional sports unions.  I mean these guys don't make enough money without once again screwing the guys who support them?  Bad enough I have to eat $ 6 hot dogs and $ 8 beers at a game.  Now you want a piece of my fantasy team?

Justice is served.

Alec