In re NCAA Student-Athlete Name & Likeness Licensing Litigation

990 F. Supp. 2d 996, 2013 WL 5778233, 2013 U.S. Dist. LEXIS 153730
CourtDistrict Court, N.D. California
DecidedOctober 25, 2013
DocketNo. C 09-1967 CW
StatusPublished
Cited by2 cases

This text of 990 F. Supp. 2d 996 (In re NCAA Student-Athlete Name & Likeness Licensing Litigation) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re NCAA Student-Athlete Name & Likeness Licensing Litigation, 990 F. Supp. 2d 996, 2013 WL 5778233, 2013 U.S. Dist. LEXIS 153730 (N.D. Cal. 2013).

Opinion

[997]*997ORDER DENYING MOTIONS TO DISMISS

(Docket Nos. 856, 857, 858)

CLAUDIA WILKEN, United States District Judge

Plaintiffs, a group of current and former college athletes, pursue this putative class action against Defendant National Collegiate Athletic Association (NCAA). They [998]*998initially brought claims against Collegiate Licensing Company (CLC) and Electronic Arts Inc. (EA) as well, but recently agreed to settle those claims. Accordingly, this order only addresses Plaintiffs’ claims against the NCAA.

The NCAA moves to dismiss the antitrust claims from Plaintiffs’ Third Amended Consolidated Class Action Complaint (3CAC). After considering the parties’ submissions and oral argument, the Court denies the NCAA’s motion to dismiss.

BACKGROUND

Plaintiffs are twenty-five current and former student-athletes who played for NCAA men’s football or basketball teams between 1953 and the present. Docket No. 832, 3CAC ¶¶ 25-233. All played at the Division I level, the highest level of collegiate athletic competition,1 and many went on to play professionally, as well. Id. In the present case, four of the Plaintiffs (Righh-of-Publicity Plaintiffs) allege that the NCAA misappropriated their names, images, and likenesses in violation of their statutory and common law rights of publicity. The other twenty-one Plaintiffs (Antitrust Plaintiffs) allege that the NCAA violated federal antitrust law by conspiring with EA and CLC to restrain competition in the market for the commercial use of their names, images, and likenesses. This order addresses only the latter set of claims, which arise under the Sherman Antitrust Act, 15 U.S.C. § 1 et seq.

Antitrust Plaintiffs2 initiated the first of these consolidated actions in 2009 and filed a Second Amended Consolidated Class Action Complaint (2CAC) in May 2011. Docket No. 327, 2CAC. Their 2CAC alleged that the NCAA, an unincorporated association of universities and regional sports conferences, which governs collegiate athletics, required student-athletes to sign various release forms as a condition of their eligibility to compete. According to Plaintiffs, those forms “require[d] each of them to relinquish all rights in perpetuity to the commercial use of their images, including after they graduate and are no longer subject to NCAA regulations.” Id. ¶ 21. The 2CAC alleged that the NCAA relied on these “purposefully misleading” forms, along with its own bylaws, to sell or license student-athletes’ names, images, and likenesses to third parties such as EA and CLC. Id. EA allegedly profited from the use of these names, images, and likenesses by publishing NCAA-branded videogames that feature player-avatars modeled after real student-athletes. Id. ¶¶ 168, 173. CLC, meanwhile, allegedly represented the NCAA in its licensing agreements with EA and other producers of NCAA-branded merchandise. Id. ¶¶ 16, 341.

The 2CAC alleged that the NCAA enlisted these companies in “a price-fixing conspiracy and a group boycott / refusal to deal that [ ] unlawfully foreclosed [student-athletes] from receiving compensation in connection with the commercial exploitation of their images, likenesses and/or names following their cessation of intercollegiate athletic competition.” Id. ¶ 9. Their complaint sought both injunctive and [999]*999compensatory relief. In particular, Plaintiffs requested a permanent injunction ending the alleged group boycott and monetary damages compensating them for the nonconsensual, commercial use of their names, images, and likenesses.

In September 2012, Plaintiffs moved to certify a class to pursue their antitrust claims. Docket No. 554 (subsequently refiled as Docket No. 651), Class Cert. Mot. Their motion, however, relied on a theory of antitrust liability that had not been clearly plead in their 2CAC. The new theory deviated in three critical respects from the theory plead in their complaint.

First, Plaintiffs narrowed their proposed class definition from a class of student-athletes whose names, images, or likenesses were used for a wide range of commercial purposes — including in videogames, apparel, highlight films, and other NCAA-branded merchandise — to a smaller class of student-athletes whose names, images, and likenesses were featured specifically “in game footage or in videogames.” Id. at 1-2.

Second, Plaintiffs altered their damages theory by placing greater emphasis on the revenue that the NCAA derives from the use of student-athletes’ names and images in live television broadcasts. Before filing their class certification motion, Plaintiffs had focused primarily on revenue derived from the commercial use of their names, images, and likenesses in archival game footage — as well as videogames and other merchandise — but not live game broadcasts. In fact, during discovery proceedings in February 2012, Plaintiffs expressly stated that they did not “claim rights to be compensated for appearing in live broadcasts or playing on the field.” Docket No. 420, 2/8/2013 Hrg. Tr. 15:21 — :22 (emphasis added).3 While their 2CAC referred briefly to the revenue generated from the sale of five broadcasting rights, 2CAC ¶ 169, its discussion of broadcast-related revenue focused primarily on the sale of archival footage to advertisers, television networks, and fans, see id. ¶¶ 53, 119, 294, 306, 334-64, 420-27 (alleging that former student-athletes’ names and images are featured without their consent in “ ‘stock footage’ sold to corporate advertisers,” “rebroadcasts of ‘classic’ games,” and “DVD game and highlight film[ s] ”).

Third and finally, the motion for class certification identified two new markets where Defendants had allegedly restrained competition: (1) the “Division I college education market” where colleges and universities compete to recruit the best student-athletes; and (2) the “market for the acquisition of group licensing rights for the use of student-athletes’ names, images and likenesses in the broadcasts or rebroadcasts of Division I basketball and football games and in videogames featuring Division I basketball and football.” Class Cert. Mot. at 18. Previously, Plaintiffs had only alleged harm to the general “collegiate licensing market in the United States, including licensing rights to current and former players’ images and likenesses,” without reference to any specific “group licensing” market. 2CAC ¶306. Furthermore, the 2CAC appeared to conflate the demand for student-athletes’ names, images, and likenesses in the collegiate licensing market with the demand for student-athletes among schools in the “Division I college education market.” Id. ¶ 312. Plaintiffs’ class certification motion made clear that these were two distinct markets.

Citing the various changes to Plaintiffs’ theory of the case, Defendants moved in [1000]*1000October 2012 to strike the class certification motion. Docket No. 639, Mot. Strike. The Court denied the motion to strike but granted Defendants leave to file supplemental briefs opposing class certification so that they could address the changes to Plaintiffs’ antitrust theory. Docket No. 673, Order Denying Defs.’ Mot. Strike, at 1-2.

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Bluebook (online)
990 F. Supp. 2d 996, 2013 WL 5778233, 2013 U.S. Dist. LEXIS 153730, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-ncaa-student-athlete-name-likeness-licensing-litigation-cand-2013.