Very interesting case IMO.....quick summary on how I read it... The NFL is an incorporated association that includes 32 seperately owned football teams. Each team has its own colors and logos, and owns realted intellectual property. Prior to 1963, the teams made their own arrangements for licensing tradmarked items such as caps and jerseys. In 1963 the teams organized the National football League Properties NFLP to develop license and market their properties. Most of the revenues obtained were either given to charities or divided equally amongst the teams. The teams are able to withdraw from this arrangment. From 1963 to 2000NFLP granted non-exclusive licenses to a number of vendors to manufacture and sell trademarked apparel for all 32 teams. American Needle was one of those vendors. In Dec 2000 the teams voted to authorize NFLP to grant exclusive licenses. It granted Reebok a 10-year exclusive license to manufacture and sekk tradmarked caps for all 32 teams. It declined to renew American Needle's license. AM filed suit in US District Court alleging violations of sections 1 and 2 of the Sherman Act. NFLP moved for summary judgement. The District Court granted summary judgement holding that the 32 teams in that facet of their activity should be regarded as a single entity rather than a join ventures cooperating for a common purpose. The 7th Citcuit affirmed, holding that Section 1 did not apply since the NFL acted collectively in this aspect of their business. On cert hel by Stevens, it was reversed and remanded. The NFLP is not categorically exempt from Section 1 of the Sherman Act. The teams compete in the market for intellectual property. The potential restraint must be judged by the flexible Rule of Reason. This concerted action may survive such analysis. This question will be considered on remand... which actually should be interesting as well....enjoy!!
From the ESPN.com article on this: It's very odd that the MLB and its teams are legally considered as a single entity because of judgments made in 1922, and are basically grandfathered in to being able to act like one even despite this ruling. Maybe if someone took a lawsuit all the way to the Supreme Court now, it would get overturned.
Not sure about that as MLB is the only one to have Statutory exemption from the Anti Trust Acts, the SCOTUS would have to deem it fit to repeal almost 100 yrs of statute..that would be a stretch.
I'd think a good lawyer would be able to tear it apart with the very decisions and wording that the SCOTUS used against the NFL.
