Wisconsin Interscholastic Athletic Ass'n v. Gannett Co.

658 F.3d 614, 39 Media L. Rep. (BNA) 2330, 2011 U.S. App. LEXIS 17684, 2011 WL 3773844
CourtCourt of Appeals for the Seventh Circuit
DecidedAugust 24, 2011
Docket10-2627
StatusPublished
Cited by18 cases

This text of 658 F.3d 614 (Wisconsin Interscholastic Athletic Ass'n v. Gannett Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wisconsin Interscholastic Athletic Ass'n v. Gannett Co., 658 F.3d 614, 39 Media L. Rep. (BNA) 2330, 2011 U.S. App. LEXIS 17684, 2011 WL 3773844 (7th Cir. 2011).

Opinion

WOOD, Circuit Judge.

As the governing body for middle and high school athletic programs in Wisconsin, the Wisconsin Interscholastic Athletic Association (WIAA or Association) sponsors statewide post-season tournaments. In 2005, WIAA contracted with American-HiFi, a video production company, to stream its tournament events online. Under this contract, American-HiFi has an exclusive right to stream nearly all WIAA tournament games. If American-HiFi elects not to stream a game, other broadcasters may do so after obtaining permission and paying a fee. Notably, the exclusive broadcast agreement between American-HiFi and WIAA concerns entire game transmission; it does not prohibit media coverage, photography, or interviews before or after games. Private media may also broadcast up to two minutes of a game, or write or blog about it as they see fit, so long as they do not engage in “play-by-play” transmission.

Taking the position that these exclusive license agreements violate a supposed First Amendment right to broadcast entire performances, newspapers owned by Gannett Co., Inc., decided to stream four WIAA tournament games without either obtaining consent or paying the fee. In *616 response, WIAA filed this declaratory judgment action in state court asserting its right to grant exclusive licenses. After Gannett removed the case to federal court, the district court entered summary judgment in favor of WIAA.

On appeal, the only issue presented concerns the First Amendment as it might apply to WIAA’s internet streaming rules. Gannett argues that WIAA, a state actor, cannot (ever, it seems) enter into exclusive contracts with a private company for the purpose of broadcasting entire events online, or, more broadly yet, to raise revenue. Gannett does not challenge other restrictions on media access to WIAA’s events, or even WIAA’s other exclusive licenses, like those WIAA has for television and radio broadcast. But the implications of Gannett’s arguments are staggering: if it is correct, then no state actor may ever earn revenue from something that the press might want to broadcast in its entirety. That is not correct. Gannett’s theory that coverage and broadcast are identical is both analytically flawed and foreclosed by Zacchini v. Scripps-Howard, Broadcasting Co., 433 U.S. 562, 97 S.Ct. 2849, 53 L.Ed.2d 965 (1977). Simply put, streaming or broadcasting an event is not the same thing as reporting on or describing it. In addition, Gannett overlooks the importance of the distinction between state-as-regulator and state-as-proprietor, which in turn leads it to fail to appreciate the fact that tournament games are a performance product of WIAA that it has the right to control. Thus, because the exclusive agreements between WIAA and American-HiFi are otherwise not contested, and we find no reason in the First Amendment to change them, we affirm the district court’s judgment for WIAA.

I

WIAA is a voluntary, nonprofit organization comprised of 506 public and private high schools and 117 junior high and middle schools in Wisconsin. Other than a few charter and online schools, all public high schools are members of WIAA. The Association’s purpose is to govern, regulate, and control interscholastic sports in a manner that promotes the ideals of member schools, such as good citizenship and sportsmanship. Another important goal is to create opportunities for schools to participate equally in athletics. WIAA accomplishes this by promulgating uniform statewide standards for competition and participation. The parties have stipulated that WIAA is a state actor. This means that its actions are constrained by the First Amendment. (We note that in other cases where courts had to decide if similar organizations were state actors, the answer has been yes. See, e.g., Brentwood Acad. v. Tennessee Secondary Sch. Athletic Ass’n, 531 U.S. 288, 298, 121 S.Ct. 924, 148 L.Ed.2d 807 (2001); Crane v. Indiana High Sch. Athletic Ass’n, 975 F.2d 1315 (7th Cir.1992).)

Though WIAA regulates both regular season games and post-season tournaments, it sponsors only the post-season tournaments, including regional and sectional events and the state championships. The dispute here concerns tournament games, which alone are subject to the Association’s “Media Policies Reference Guide.” The Media Policies are “produced to inform statewide media of WIAA policies in effect for all levels of State Tournament Series competition” and to “assist members of the media in providing comprehensive coverage to their communities.” Many provisions in the Media Policies regulate press access but are not included in the present dispute: media must obtain credentials to cover a game, and each outlet may obtain only a limited number of spots (typically two per media outlet, including internet sites, but five for daily newspapers); credentialed media are permitted to take photographs, but must *617 shoot in designated locations; and pre-and post-game interviews are permitted, but must be done at specified locations and times.

The Media Policies also include “Tournament Transmission Policies” applicable to radio, television, cable, and internet transmissions. These transmission rules reflect the underlying contracts WIAA has signed with private companies for the exclusive broadcasts of some sports. Those agreements stipulate that WIAA and “its exclusive rights partners retain the rights to all commercial use of video, audio, or textual play-by-play transmitted at a WIAA Tournament Series event.” The Media Policies further provide that WIAA “owns the rights to transmit, upload, stream or display content live during WIAA events and reserves the right to grant exclusive and nonexclusive rights or not grant those rights on an event-by-event basis.”

The Media Policies have specific provisions for commercial use of video; these apply both to television and online broadcast:

A. There may not be live coverage of any live game action during the contests. “Live coverage” is defined as any activity which occurs while a game or meet is in progress. Stations or Web sites may use a back drop of live action for reports from a tournament facility provided there is no play-by-play commentary and the report is limited to regularly scheduled news or sports programs and are [sic ] no more than two minutes of a program which is any length.
B. Use of film, video, audio, tape, etc., is limited to regularly scheduled news, sports programs or Internet site stories, and use of such content is limited to no more than two minutes of a web stream or program which is any length. Unless written approval is granted from the WIAA office, use of more than two minutes of film, video, audio, tape, or stream, etc., beyond five days from the last day of a tournament is prohibited without written consent of the WIAA.

These two-minute rules pertain to a transmission by broadcast or streaming (that is, to “uses”), but they do not limit recording. Thus, a news agency might potentially record an entire game and then review and edit it down to the two minutes it would like to use later.

The Media Policies include procedures for obtaining permission to stream a game if American-HiFi is not streaming it, or for requesting the broadcast of more than two minutes of a game.

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658 F.3d 614, 39 Media L. Rep. (BNA) 2330, 2011 U.S. App. LEXIS 17684, 2011 WL 3773844, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wisconsin-interscholastic-athletic-assn-v-gannett-co-ca7-2011.