American Needle Inc. v. National Football League (2009)
- Docket
- 08-661
- Decided
- 2009-01-01
Summary
Question: 1) Are the NFL and its members a single entity for the purposes of antitrust laws? 2) Is the agreement of NFL teams with Reebok subject to Section 1 of the Sherman Antitrust Act, when teams own and control the use of their separate logos and trademarks and, but for their agreement not to, could compete with each other in the licensing and sale of team products? Conclusion: No. Yes. The Supreme Court held that the National Football League's licensing of intellectual property in this case constitutes concerted action that is not categorically beyond Section 1 of the Sherman Antitrust Act's coverage. With Justice John Paul Stevens writing for a unanimous Court, it noted that each NFL team is a substantial, independently owned, and independently managed business, whose objectives are not common. The Court reasoned that while the actions of NFL Properties ("NFLP") are not as easily classified as concerted activity, the NFLP's decisions about licensing are a concerted activity and, thus, are covered by Section 1.