JUNE 30, 2009 • The U.S. Supreme Court accepted a request by the National Football League to determine whether the league is a single entity that can act collectively, or 32 distinct businesses that are subject to anti-trust laws. The NFL won a case brought by American Needle Inc. in appeals court, but wants a more sweeping decision to fend off other anti-trust litigation. American Needle contended the NFL violated ant-trust law when it awarded an exclusive contract for licensed headwear to Reebok International Ltd. in 2001. The NFL has a similar arrangement for football games with Electronic Arts.
Impact: This is definitely a case to watch. The NFL has granted Electronic Arts the exclusive right to make games using the NFL license through the 2012 season. If the NFL is deemed in violation of anti-trust law for granting exclusive contracts it would seem to have definite bearing on EA’s exclusive license.
