NCAA Tournament brings class action lawsuit to the forefront

The National Collegiate Athletic Association (NCAA) is a unique business model, to say the least. As the upcoming NCAA Men's Basketball Tournament and ever-popular March Madness have shown, the organization reaps enormous revenue from a number of lucrative TV deals, while also working in conjunction with educational institutions. At the very core, though, the NCAA is a business when it comes to having its games broadcast.

In that case, should athletes be considered employees? And if so, should they be getting a cut of that TV money?

That's the question posed in a class action lawsuit that has been filed against the NCAA by a number of former college stars whose likenesses have been used for financial gain by college athletic programs across the country, even after they've graduated. According to Reuters, plaintiffs in the lawsuit have characterized the NCAA as "an illegal horizontal cartel" and said that, in it's treatment of athletes, the NCAA has "conspired to limit and depress the compensation of former student-athletes for continued use of their images to zero."

The main argument in the case is that the NCAA has licensed any and all usage of game broadcasts and players' likenesses for use in promotions and video games without their permission.

When the lawsuit was first filed, it seemed unlikely that the former players would ever have any legal footing to stand on. However, in January, a judge an California ruled that college athletes do have the right to go after money that the NCAA made through TV deals with the likes of CBS and ESPN, allowing the lawsuit to fight on in the courts.

This class action suit is certainly an abnormal case, and won't apply to many businesses. However, it should serve as a reminder for companies to think about the way they license intellectual property. It's recommended that local businesses seek out a Phoenix small business attorney to avoid copyright claims.

Categorised in: Business Law

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