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League seeks to force fantasy baseball to play by its rules

By The Associated Press
06.18.07

ST. LOUIS — Attorneys representing Major League Baseball and players argued last week that online fantasy baseball companies cannot operate without paying license fees to MLB to compensate players for the use of their names.

A panel of three judges at the 8th U.S. Circuit Court of Appeals seemed skeptical that MLB could take financial control of a game that uses publicly available statistics and widely known names of players.

“MLB is like a public religion. Everyone knows [the players’] names and what they look like,” said Judge Morris Arnold. “This is just part of being an American, isn’t it?”

Virginia Seitz, an attorney for the Major League Baseball Players Association, said online fantasy games exploit players by effectively turning them into game pieces and using their names to draw more customers.

“There’s no way of escaping the fact that players’ names are on the product,” Seitz said.

Major League Baseball is appealing a lower court judgment last year that ruled St. Louis-based CBC Distribution and Marketing Inc. does not have to pay licensing fees for MLB players’ names and statistics as fodder for online fantasy league games.

The fantasy league industry generates more than $1.5 billion annually from millions of players. Big media companies like Yahoo, ESPN and CBS pay MLB millions in annual fees to operate online fantasy leagues.

Players make fake teams comprised of real MLB players. Over the course of a season, fantasy league players crunch statistics to judge how well the players of their fake team are performing.

If MLB wins its appeal, it would effectively give the league monopoly rights over publicly available statistics and other information that is used as fodder for fantasy leagues across the country, said CBC’s attorney Rudy Telscher.

“If we lose this case, hundreds of companies go out of business,” Telscher said.

A key issue in the June 14 arguments was the publicity rights of MLB players. Seitz argued that fantasy leagues are similar to a company that steals a player’s image to sell coffee cups or posters. Without using the players’ names, fantasy leagues would be an unprofitable game of statistics crunching, she said.

“There is much less interest in predicting the crime rates of major American cities,” she said.

Telscher said fantasy leagues were not unlike newspapers, which use sports players’ names in their pages to draw readers. He said customers paid to use CBC’s Web site because it automatically processes statistics for them, so the company essentially conveys public information.

“There’s not any affidavit from players who say they feel like they have been damaged” by fantasy leagues, Telscher said.

The judges adjourned by saying they would consider the arguments before ruling.


Update
8th Circuit rules in favor of fantasy baseball company
Three-judge panel upholds lower court decision that lets fantasy league use players' names and statistics without paying licensing fee. 10.17.07

Previous
Strike 1: Major League Baseball can't control player names, stats
Federal judge finds fantasy leagues may use information because it isn't the intellectual property of Major League Baseball. 08.09.06

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Below par: The PGA and freedom of the press
By Ken Paulson Court rules that golf tour can prevent news media from reporting scores as they happen. 04.18.04

Good news in judge's fantasy-league ruling
By Gene Policinski Decision that Major League Baseball, players don't 'own' stats or names endorses free flow of information. 08.11.06

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