Morris Communications Corp. v. PGA Tour, Inc.

117 F. Supp. 2d 1322, 56 U.S.P.Q. 2d (BNA) 1952, 28 Media L. Rep. (BNA) 2544, 2000 U.S. Dist. LEXIS 15620, 2000 WL 1610379
CourtDistrict Court, M.D. Florida
DecidedOctober 23, 2000
Docket3:00-cv-01128
StatusPublished
Cited by6 cases

This text of 117 F. Supp. 2d 1322 (Morris Communications Corp. v. PGA Tour, Inc.) is published on Counsel Stack Legal Research, covering District Court, M.D. Florida 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., 117 F. Supp. 2d 1322, 56 U.S.P.Q. 2d (BNA) 1952, 28 Media L. Rep. (BNA) 2544, 2000 U.S. Dist. LEXIS 15620, 2000 WL 1610379 (M.D. Fla. 2000).

Opinion

ORDER

SCHLESINGER, District Judge.

Before the Court is Plaintiffs Motion for Preliminary Injunction (Doc. No. 2, filed October 11, 2000), to which the Defendant has filed a Memorandum in Opposition (Doc. No. 15, filed October 17, 2000). On October 18, 2000, the Court heard oral argument on the Motion. In their respective memoranda and supporting arguments, the parties have advanced competing theories of antitrust and intellectual property law. As explained more fully herein, resolution of both the instant Motion and the underlying controversy will require an examination of both bodies of law and their proper application in a rapidly changing world.

I. Background

Defendant PGA Tour, Inc. is a corporation mainly engaged in the business of promoting professional golf tournaments throughout North America, collectively known as the PGA Tour. Players on the PGA Tour, generally recognized to be among the best golfers in the world, assign all television, radio, motion picture and other rights related to PGA Tour events to Defendant, and with limited exceptions, are restricted from competing in tournaments sponsored by other entities. Plaintiff in this case has submitted affidavits stating that the PGA Tour is the most widely recognized professional golfing tour in the United States, and that although there are other golf tournaments which generate fan interest, there are no effective substitutes for the PGA Tour.

PGA Tour events are covered extensively by a number of different print, broadcast, and electronic media organizations. Although these events are conducted on private golf courses, Defendant issues credentials to members of the media who are thereby invited to its tournaments for the purpose of providing media coverage. One such media organization that covers the PGA Tour is Plaintiff, which is engaged in the business of publishing news, including news transmitted over the internet. Both Defendant and members of the media, including Plaintiff, benefit from this arrangement in that the media are better positioned to satisfy the public’s demand for golf-related information, and Defendant enjoys enhanced publicity, which in turn generates greater demand for its golf tournaments and related goods and services.

The crux of the controversy in this case involves a relatively new form of internet-based information known as “real-time” scores. Real-time scores, as the term suggests, are scores that are transmitted over the internet contemporaneously, or nearly contemporaneously, to their being gathered and recorded at one central location on the golf course. In this way, internet users are able to track during a golf tournament each participating player’s progress on a hole-by-hole basis. In order to facilitate transmission of the real-time golf scores over the internet, Defendant has designed and implemented an electronic relay system called the Real-Time Scoring System (“RTSS”). According to affidavits submitted by Defendant, it has invested in excess of $26,000,000 to date in developing and operating RTSS.

The system basically works as follows: During a given golf tournament, volunteer workers known as “hole reporters” follow each group of golfers on the golf course and tabulate the scores of each player at the end of each hole of golf played. The scores are then collected by other volunteers located at each of the 18 greens on the golf course, who, with the aid of hand-held wireless radios, relay the scoring information to a remote production truck staffed by personnel employed by Defendant. The scores of all participating golfers are then processed at the remote production truck and transmitted by Defendant to its web-site, pgatour.com. At the same time, real-time scores are also transmitted to an on-site media cen *1325 ter where members of the media are able to access the scores.

Due to the nature and size of golf courses, which may typically span 100 acres, comprehensive real-time scores— that is, up-to-the-minute scores of every competitor — can only be compiled using a relay system such as RTSS. During a golf tournament, different groups of players compete contemporaneously at different holes such that any one spectator can only view a limited number of players at any one of the eighteen holes at any given time. Thus, in order to generate real-time scores, it is necessary to have individuals stationed at each of the different holes as the tournament progresses so that the entire golf course can be monitored simultaneously. Acknowledging that some kind of relay system is needed to generate the type of real-time scoring information it wishes to syndicate, Plaintiff submits that it is unable to implement such a system itself due to PGA Tour rules prohibiting unauthorized use of wireless communication devices on the golf course at its tournaments. 1 See Baseman Aff. ¶ 12.

Plaintiff alleges that beginning in 1996, it began transmitting real-time golf scores on its web-sites, jacksonville.com and augustachronicle.com, from which it generates revenue through advertising and subscriptions. In addition, Plaintiff has contracted with a number of third parties to syndicate the real-time golf scores it collects. Defendant has also contracted to sell the scores it gathers to third parties, including USA Today and Golfonline.com, and is, according to Plaintiff, the only significant competitor in the market for the re-sale of real-time golf scores (“the syndication market”).

At all relevant times, Defendant has allowed credentialed members of the media, including Plaintiff, to transmit real-time scores obtained at the on-site press center on their own web-sites. Under the original terms of Defendant’s On-Line Service Regulations (“OLSR”), scoring information appearing on a non-PGA Tour web-site could be published on any web-site, but not sooner than thirty minutes after the actual occurrence of the shots. Defendant’s stated purpose for this regulation was to allow it to have the first opportunity to post the real-time scores on its web-site and those of its syndicates. See Moorehouse Aff. ¶ 12.

Beginning in January, 2000, Defendant amended its OLSR so that scoring information could appear on an unaffiliated web-site either no sooner than 30 minutes after the actual occurrence of the shots or when the information became legally available as public information. Under the amended OLSR, however, under no circumstances could “scoring information ... be used by, sold, given, distributed or otherwise transferred to, any party other than the Credentialed Site in any manner whatsoever, without the prior unitten consent of the PGA Tour.” A violation of these regulations may result in revocation of the offending party’s media credentials.

In August, 2000, at Plaintiff’s request, Defendant agreed to waive the restriction on selling real-time golf scores to third parties on condition that Plaintiff agree to collect the scores to be sold for syndication from pgatour.com rather than the on-site media center. According to its Complaint, Plaintiff attempted to gather real-time golf scoring information using this alternative method but ultimately abandoned it as unworkable due to unacceptable delays and inaccuracies of pgatour.com. See

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Bluebook (online)
117 F. Supp. 2d 1322, 56 U.S.P.Q. 2d (BNA) 1952, 28 Media L. Rep. (BNA) 2544, 2000 U.S. Dist. LEXIS 15620, 2000 WL 1610379, Counsel Stack Legal Research, https://law.counselstack.com/opinion/morris-communications-corp-v-pga-tour-inc-flmd-2000.