Upon Further Review of Hart v. Electronic Arts: New Article Proposes Partial Recovery for Partially Transformative Use

Back in September 2011, the U.S. District Court for the District of New Jersey ruled in Hart v. Electronic Arts, 808 F. Supp. 2d 757 (D.N.J. 2011) that videogame publisher Electronic Arts may use college athletes' likenesses in its videogames because "there are sufficient elements of [Electronic Arts'] own expression ... that justify the conclusion that its use of the image is ... entitled to First Amendment protection." (Previously blogged about on Sports Law Blog here).

To many, the district court's decision in Hart was controversial, not only because it subordinates the rights of college athletes, but also because it expands what courts have traditionally defined as "transformative use" of one's likeness. For example, the court in Hart concluded that Electronic Arts' inclusion of“virtual stadiums, athletes, coaches, fans, sound effects, music andcommentary” makes use of player likenesses in NCAA Football "transformative." Nevertheless, the U.S. Court of Appeals for the Ninth Circuit had previously held in Hilton v. Hallmark Cards that First Amendmentprotection applies only where “a product containing a celebrity’s likeness isso transformed that it has become primarily the defendant’s own expressionrather than the celebrity’s likeness.”

After several months of contemplating the district court's ruling in Hart v. Electronic Arts, I have released a draft of my upcoming Florida Law Review article, entitled "Closing the Free Speech Loophole: The Case for Protecting College Athletes' Likenesses in Commercial Videogames." In this article I argue that the partial transformation to a person's likeness via digital format -- whether it be by adding additional background elements, or by changing one's jersey number, height or hairdo -- should not be seen as a complete bar to recovery under right of publicity law.

Instead, I argue that a partial transformation to one's likeness should be deemed as a partially mitigating factor that may reduce the infringer's liability, but would not reduce it to zero. Thus, under this alternative assessment, college athletes whose likenesses appear in college football videogames would be entitled to partial recovery.

For those interested in further discussion of college athletes' publicity rights in commercial videogames and the idea of partial recovery for partial transformative use of one's likeness, a full copy of my upcoming law review article is available here.

"Dear Colleague" Letter Regarding PASPA

On April 26, 2012, U.S. Congressmen Frank Pallone and Frank Lobiondo (both from New Jersey) released a "Dear Colleague" letter explaining the impetus for the two bills they recently introduced pertaining to PASPA, the 1992 federal statute prohibiting state-sponsored sports gambling in all jurisdictions except Nevada, Montana, Delaware, and Oregon. An excerpt from the letter is below:

"We have developed two separate, but equally effective, pathways toward the same goal of bringing sports gaming and the economic benefits it yields to the State of New Jersey. The New Jersey Betting and Equal Treatment Act of 2012 (NJ BET Act), H.R. 3081, provides New Jersey with an exemption to the federal prohibition [in PASPA]. It allows state law in New Jersey to determine how sports betting will be regulated within the state. The Sports Gaming Opportunity Act of 2012, H.R. 3797, opens a window in which states can enact alaw providing for sports gambling within their state until January 1, 2016,after which the federal prohibition [in PASPA] against states allowing sportsgambling would go back into place."

The full letter can be found here.

Minnesota Passes Bill to Allow Beer and Alcohol Sales at College Sporting Events

For those who are interested in the debate over whether to allow beer and alcohol sales at college sporting events, the State of Minnesota recently passed a bill that would allow for the sale of alcohol in suites for premium ticket holders and in a beer garden for the general public. According to the Minneapolis Star Tribune, the new bill is expected to bring the State of Minnesota $1.5-$2.0 Million in annual revenue.

If Minnesota Governor Mark Dayton signs this new bill into law, Minnesota will join Iowa, West Virginia and a growing number of other states in allowing beer and alcohol sales at their college sporting events. This is at the same time that many colleges around the country claim there is a need to crack down on undergraduate students' alcohol consumption.

In a 2010 law review article, David Rosenthal (a former student of mine) and I discuss the inconsistent messages that college athletics send about alcohol use. Does it make sense for the University of Minnesota to arrest underage students for drinking beer on Friday nights, and then to sell beer in its football stadium on Saturday afternoons?

Also, when colleges profit from the sale of beer at their sporting events, are they implicitly using their 'student-athletes' to help peddle the product? If so, can we truly call these college athletes amateurs?

Sports Venture Capital

I attended this week the first meeting of a group focused on sports venture capital. The attendees included representatives from the major sports leagues, venture capitalists and a number of initial stage companies with some technology or other services applicable to the sports industry.

MLB and NFL digital media execs gave a fascinating presentation on how those leagues use digital media to interact with and gain new fans, and what they look for when considering their own investments and other partnerships with sports technology companies.

The major sports leagues clearly see potential financial benefits from investing in initial stage technology companies, at least in part because social media is integral to their business models, as well as owning their own content. With the importance of social media for teams and leagues in heightening the fan experience (and increasing revenues), the proliferation of sports start-ups focused on technology and social media is likely to continue and teams and leagues are likely to continue to invest their own funds in these ventures. Technology companies like Apple and Google have been rumored to be bidders for sports media rights such as the English Premier League soccer.

The convergence of technology and sports, and start-up ventures, particularly social media companies, is a trend to watch.

Free speech at the old ballgame

I have suggested that the brouhaha over Ozzie Guillen's "praise" of Fidel Castro was silly, in the sense that we are giving far too much creedence to the words of a baseball manager who has built a career out of saying provocative things. (I also recognize that I do not equate Castro with Hitler and thus do not get as exorcised over tepid compliments directed his way).

But I have also argued that the calls from some in the Miami-Cuban community for a boycott of the team and/or for Guillen's firing reflect precisely what the First Amendment demands: counter-speech in response to speech you don't like.

I attended today's game at Marlins Park (against my inept Cubbies), the third game since Guillen's reinstatement after a five-game suspension. Inside, Marlins fans seem to have moved on. I did not see any signs or banners about Guillen and he was not booed on any of the many, many times he came on the field to change pitchers or when he came out to celebrate the Marlins' victory. Outside, there were about two dozen anti-Guillen protesters, mostly in their 50s or 60s or older, which fits with the demographics of anti-Castro sentiment in Miami. No one seemed to be paying them much attention, other than to take pictures on their cell phones.

Mine are below.

Crime doesn't pay, but may taste good

From this link:

Former Florida guard Erving Walker has pleaded no contest to a petty theft charge of stealing a $3 taco ... and fined $301.

Walker, who just completed his senior season and ranks first in school history in assists, was arrested March 30. Gainesville Police said he ordered a taco from a street vendor, got the food and ran away without paying. ...

Roger Clemens Trial, Take 2

Barring an unexpected twist, like a mistrial being declared, U.S. v. Roger Clemens will be heard before U.S. District Judge Reggie Walton over the next four to six weeks.  This is the case's second trial, with last summer's trial being declared a mistrial because prosecutors showed jurors comments by U.S. Congressman Elijah Cummings about his views on the credibility of Andy Pettitte and his wife, Laura.  This is likely the last "major athlete and steroids-related perjury" case that we'll see for many years.  I suspect it will go out with with some fireworks.

I preview the trial for SI.com and also for CNN.