CBS Interactive Inc. v. National Football League Players Ass'n

259 F.R.D. 398, 2009 U.S. Dist. LEXIS 36800, 2009 WL 1151982
CourtDistrict Court, D. Minnesota
DecidedApril 28, 2009
DocketCivil No. 08-5097 ADM/SRN
StatusPublished
Cited by22 cases

This text of 259 F.R.D. 398 (CBS Interactive Inc. v. National Football League Players Ass'n) is published on Counsel Stack Legal Research, covering District Court, D. Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
CBS Interactive Inc. v. National Football League Players Ass'n, 259 F.R.D. 398, 2009 U.S. Dist. LEXIS 36800, 2009 WL 1151982 (mnd 2009).

Opinion

MEMORANDUM OPINION AND ORDER

ANN D. MONTGOMERY, District Judge.

I. INTRODUCTION

On January 28, 2009, the undersigned United States District Judge heard oral argument on Defendants National Football League Players Association, Inc.’s (“NFLPA”) and National Football League Players Incorporated’s (“Players Inc.”) (collectively “Defendants”) Motions to Transfer Venue [Docket Nos. 15 and 50]; Plaintiff CBS Interactive Inc.’s (“CBS Interactive”) Motion for Partial Summary Judgment [Docket No. 22]; Players Inc.’s Motion to Dismiss for Lack of Personal Jurisdiction [Docket No. 33]; and Defendants’ Motions to Dismiss [Docket Nos. 43 and 53] for failure to state a claim and failure to join an indispensable party. For the reasons stated herein, Players Inc.’s Motion to Dismiss for Lack of Personal Jurisdiction is denied, Defendants’ Motions to Transfer Venue are denied, Defendants’ Motions to Dismiss for failure to state a claim and failure to join an indispensable party are granted in part and denied in part, and CBS Interactive’s Motion for Partial Summary Judgment is granted.

II. BACKGROUND1

A. The Parties

CBS Interactive is a Delaware corporation with its principal place of business in California. First Am. Compl. [Docket No. 21] ¶ 3. CBS Interactive operates the website “CBSSports.com” throughout the United States, including Minnesota. Id. ¶¶ 3-4. NFLPA and Players Inc. are Virginia corporations with principal places of business in Washington, D.C. Nahra Decl. ¶ 3, Sept. 30, 2008 [Docket No. 18]; Berthelsen Decl. ¶ 3, Sept. 30, 2008 [Docket No. 19]. NFLPA is a non-profit corporation that acts as the exclusive collective bargaining representative for active players in the National Football League (“NFL”). Nahra Decl. ¶ 3, Sept. 30, 2008. Players Inc. is a for-profit corporation and a partially-owned subsidiary of NFLPA.2 Berthelsen Decl. ¶ 4, Sept. 30, 2008.

B. Group Licensing

Through the collective bargaining agreement with NFLPA and separate “Group Licensing Agreements,” the individual players assign their “Group Licensing Rights” to “NFLPA and its licensing affiliates.” Telscher Deck, Oct. 6, 2008 [Docket No. 27], Ex. 2; Nahra Deck ¶ 10, Oct. 17, 2008. NFLPA has the right to license the use of the individual players’ names, signatures, facsimile, voices, pictures, photographs, likenesses, and biographical information in connection with “group licensing programs” involving six or more players. Telscher Deck, Oct. 6, 2008, Ex. 2; Nahra Deck ¶ 10, Oct. 17, 2008. Pursuant to a separate agreement with Players Inc. that expressly confirms that NFLPA is the owner of the Group Licensing Rights, NFLPA then grants Players Inc. “the exclusive worldwide right, license, and privilege of utilizing the ... Group Licensing Rights.” Telscher Deck, Oct. 6, 2008, Ex. 3, § 1(A); Nahra Deck ¶ 11, Oct. 17, 2008. The agreement includes the following provision: “Any Group Licensing Rights obtained by Players Inc. during the term of this Agreement, or any renewals thereof, shall be the property of NFLPA and subject to the terms and conditions of this Agreement.” Telscher Deck, Oct. 6, 2008, Ex. 3, § 1(E). In exchange for the right to use and sublicense the Group Licensing Rights, Players Inc. pays NFLPA a percentage of the [403]*403gross licensing revenues. Nahra Decl. ¶ 13, Oct. 17, 2008.

C. Fantasy Football

Through CBSSports.com, CBS Interactive operates “fantasy sports” games, including “fantasy football,” and is a “leading provider of ... fantasy football, to sports enthusiasts throughout the country, including in one of its top markets, Minnesota.”3 First Am. Compl. ¶4; Snyder Decl. ¶7, Oct. 6, 2008 [Docket No. 25]. For purposes of this case, “fantasy football” refers to a game in which participants simulate management responsibilities of the roster of a NFL team by, among other things, (1) scouting, drafting, and trading players on their teams; (2) adding and dropping players; and (3) otherwise manipulating the team’s roster over the course of the season-long competition. Snyder Decl. ¶ 5, Oct. 6, 2008. To facilitate the competition among the participants in a given fantasy football league, the standard fantasy football game utilizes the actual statistics generated by NFL players during the course of the regular season. Id.

At or prior to the start of the NFL regular season, participants, often referred to as “owners,” select NFL players for their team rosters though either a “draft” system or by bidding in an “auction.” Id. After the participants have filled their rosters through the draft or auction, a season-long competition ensues based on the actual players’ performances during the regular season games in designated statistical categories. Id. To be successful in managing their rosters during the course of the fantasy football season, participants access “sports news information such as performance statistics, player reviews, injury updates,” and other information regarding the players and their respective NFL teams. Id. ¶ 6. Frequent communication and exchange of ideas with other fantasy football participants is a regular aspect of playing the game. Id. Broadly speaking, the winner in a given fantasy football league usually is either (1) the participant whose roster of players, at the end of the NFL regular season, has the highest totals in the designated statistical categories or (2) the participant who has the best overall record in numerous head-to-head games against other participants. Id. Providers of fantasy football games typically track, compile, and post the publicly available statistics of the players to enable their customers, the participants, to see whose team is winning and to aid the participants in deciding which players to add, drop, trade, or start each week. First Am. Compl. ¶ 12. CBS Interactive, like other fantasy football providers, supplies its participants with “player profiles, up-to-date statistics, injury reports, participant blogs, and other factual information about all players within the National Football League.” London Decl. ¶ 7, Oct. 6, 2008.

Due to the popularity of the NFL itself, fantasy football is one of the most popular fantasy sports games. Snyder Decl. ¶ 7, Oct. 6, 2008. In September 2007, one researcher estimated that between thirteen million and fifteen million individuals participate in fantasy football, grossing more than $1 billion a year in revenue. Telscher Decl., Oct. 6, 2008, Ex. 13 at 2.

D. Licensing Agreements and the Fantasy Baseball Litigation

In years prior to the NFL 2008/2009 regular season, CBS Interactive entered into licensing agreements with Players Inc. Berthelsen Decl. ¶ 16, Nov. 14, 2008 [Docket No. 57]; London Decl. ¶ 9, Oct. 6, 2008. These licensing agreements authorized CBS Interactive (as well as other providers of fantasy football who entered into similar licensing agreements) to use, in connection with its fantasy football games, the “names, likenesses (including without limitation, [jersey] numbers), pictures, photographs, voices, facsimile signatures and/or biographical information” of the individual NFL players who had entered into the Group Licensing Agreements. Telscher Decl., Oct. 6, 2008, Ex. 11 §§ 1(A), 2(A). The last of these licensing agreements involving CBS Interactive expired on February 29, 2008. First Am. Compl. ¶ 15.

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Bluebook (online)
259 F.R.D. 398, 2009 U.S. Dist. LEXIS 36800, 2009 WL 1151982, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cbs-interactive-inc-v-national-football-league-players-assn-mnd-2009.