For Use of Data, Panel Rules for Fantasy Service Providers Over MLB

The Eighth Circuit Court of Appeals panel in St. Louis ruled for C.B.C. Distribution (CBC) and against Major League Baseball (MLB) in a case revolving around the use of player performance statistics. CBC runs fantasy leagues, most notably for USA Today. The appeals court ruling declares that fantasy companies have a First Amendment right to use statistics for free.

In January of 2005, MLB purchased the rights for five years to use player names, photographs and statistics from the players' union (MLBPA) for $50 million. MLB sought to recoup this money (and more) from license fees to those who wished to run fantasy games. CBC sued MLB just two weeks after MLB sent CBC a letter telling it to stop promoting its fantasy game for which it did not have a license. CBC did previously have a license with the MLBPA but its license had expired.

However you may feel about fantasy sports, the idea that companies have to pay some kind of royalty fee to use statistics has precedent. CBC itself has paid for this right in the past. However, it balked at paying what was at least rumored, if not authenticated, to be a huge increase in these fees. Rather than negotiate a mutually agreeable price, they sued MLB and looked for the courts to provide a solution.

The courts had previously ruled, in NBA v. Motorola and STATS, Inc, that statistics are not copyrightable and that fantasy providers would be "unburdened by the need to pay excessive licensing fees to the major leagues."

There are two factors at work here. First are individuals' rights to publicity, which protects an individual from someone else profiting from your name or any other symbol of your identity without your permission. Basically, if I sell widgets for a living, I cannot say - Manny Ramirez loves widgets and says you will to - without compensating Mr. Ramirez. Rights of publicity vary from state to state but the courts have upheld these rights except in cases of news reporting or entertainment media.