Morris Communications Corp. v. PGA Tour, Inc.

364 F.3d 1288, 32 Media L. Rep. (BNA) 1513, 70 U.S.P.Q. 2d (BNA) 1446, 2004 U.S. App. LEXIS 5915, 2004 WL 627723
CourtCourt of Appeals for the Eleventh Circuit
DecidedMarch 31, 2004
Docket03-10226, 03-11502
StatusPublished
Cited by33 cases

This text of 364 F.3d 1288 (Morris Communications Corp. v. PGA Tour, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Morris Communications Corp. v. PGA Tour, Inc., 364 F.3d 1288, 32 Media L. Rep. (BNA) 1513, 70 U.S.P.Q. 2d (BNA) 1446, 2004 U.S. App. LEXIS 5915, 2004 WL 627723 (11th Cir. 2004).

Opinion

DUBINA, Circuit Judge:

Plaintiff-Appellant, Morris Communications Corp. (“Morris”), brought suit against Defendant-Appellee PGA TOUR, Inc. (“PGA”), alleging that PGA violated section 2 of the Sherman Act, codified at 15 U.S.C. § 2, by monopolizing the markets for (1) the publication of compiled real-time golf scores on the Internet, and (2) the sale, or syndication of those scores. In addition, Morris alleged that PGA further violated section 2 of the Sherman Act by refusing to deal with Morris. The district court granted summary judgment in favor of PGA because it found, inter alia, that PGA had a valid business justification for its actions. For the reasons that follow, we affirm the judgment of the district court.

I. BACKGROUND

A. Facts

Morris is a media company that publishes print and electronic newspapers. PGA is the sponsor of a series of professional golf tournaments throughout North America known as the PGA Tour. In order to provide golf scores during its tournaments, PGA has developed a Real-Time Scoring System (“RTSS”) that allows PGA to monitor the play around the entire golf course. .RTSS is an elaborate electronic relay scoring system that relies on state-of-the-art computer technology and equipment as well as dozens of trained workers and volunteers.

RTSS works as follows. During a PGA golf tournament, volunteers known as walking scorers follow each group of golfers on the course and tabulate the scores of each player at the end of each hole *1291 played. The scores are then collected by other volunteers, known as hole reporters, located at each of the eighteen greens on the golf course, who relay the scoring information to a remote production truck staffed by PGA personnel. The scores of all participating golfers are then processed at the remote production truck and transmitted to PGA’s website, www.pgat-our.com, as real-time golf scores, which are scores that are transmitted electronically nearly contemporaneously to their actual occurrence on the golf course. At the same time, the compiled scores are also transmitted to an on-site media center where members of the media are able to access the scores. The same information is also transmitted to various electronic leaderboards located throughout the golf course. As their name suggests, the lead-erboards typically show only the top ten or fifteen players’ scores.

The nature of a PGA golf tournament makes it impossible for one person to physically follow all the players at once. First, the average golf course spans approximately 150 acres and various golfers play numerous holes simultaneously. In addition, the PGA does not allow its invitees to use cell phones and hand-held devices on the course because such devices might disrupt play. Therefore, the only source of compiled golf scores for all tournament players is RTSS. Likewise, the only physical location at which to obtain compiled golf scores is the media center.

In order for media organizations to have access to the PGA media center, they must obtain free press credentials from PGA. To obtain these credentials, all media organizations must agree to follow PGA’s terms and conditions, including PGA’s OnLine Service Regulations (“OLSR”). The OLSR require media organizations to delay publication on their Internet websites of scoring information obtained by RTSS until the earliest of (1) thirty minutes after the actual occurrence of the shot 1 or (2) the time when such information has become legally available in the public domain, i.e. after the scores are posted on PGA’s official website, www.pgatour.com. 2 In addition, the OLSR prohibit credentialed media organizations from selling, or syndicating, compiled scoring information obtained in the media center to non-credentialed third-party Internet website publishers without first buying a license to do so from PGA. 3

Morris contends that, as a result of the OLSR, PGA is the only entity able to publish and sell real-time golf scores. Thus, Morris continues, PGA has an unfair advantage in the publication and syndica *1292 tion of the scores. PGA counters that it adopted the OLSR to preserve the value of its investment in creating and developing RTSS and to promote the competitiveness of its own website.

Based on the allegedly illegal OLSR, Morris filed suit against PGA, asserting four antitrust claims: (1) monopolization of the Internet markets, (2) unlawful refusal to deal, (3) monopoly leveraging, and (4) attempted monopolization of the Internet markets. 4

B. Procedural History

After extensive pre-trial discovery, the parties filed cross-motions for summary judgment on each claim. The district court granted PGA’s motion for summary judgment, finding that PGA had a valid •business justification for its OLSR because the OLSR prevented Morris from free-riding on PGA’s investment in its costly RTSS. Accordingly, the district court found that PGA had not violated the antitrust laws even if it operated a monopoly and refused to deal with Morris. 5

Subsequent to the granting of summary judgment in favor of PGA, Morris filed a Rule 60 motion for relief from judgment on the ground that, following the issuance of judgment in favor of PGA, PGA adopted new terms of service (“TOS”) regarding www.pgatour.com in further violation of § 2 of the Sherman Act. The new TOS prohibit anyone from using the information displayed on www.pgatour.com for a eom-mercial purpose without first buying a license from PGA. The district court denied the motion, finding that the new TOS were beyond the scope of the instant lawsuit, which addressed only PGA’s media credentialing regulations and the OLSR. Accordingly, the district court found that Morris’s challenge to the new TOS would be more aptly addressed in a separate lawsuit.

Morris timely and separately appealed the adverse summary judgment and Rule 60 orders. This court consolidated the two appeals.

II. STANDARDS OF REVIEW

This court reviews de novo whether the district court correctly granted summary judgment in favor of PGA on all counts, applying the same standard that governed the district court. Levinson v. Reliance Standard Life Ins. Co., 245 F.3d 1321, 1325 (11th Cir.2001).

This court reviews whether the district court correctly denied Morris’s Rule 60 motion for abuse of discretion. . See Bivens Gardens Office Bldg., Inc. v. Barnett Banks of Fla.,, Inc., 140 F.3d 898, 905 (11th Cir.1998).

III. ANALYSIS

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364 F.3d 1288, 32 Media L. Rep. (BNA) 1513, 70 U.S.P.Q. 2d (BNA) 1446, 2004 U.S. App. LEXIS 5915, 2004 WL 627723, Counsel Stack Legal Research, https://law.counselstack.com/opinion/morris-communications-corp-v-pga-tour-inc-ca11-2004.