* Athletes say NCAA conspires to block them from being paid
* Judge: Evidence links EA to alleged antitrust conspiracy
By Jonathan Stempel
May 17 (Reuters) – Electronic Arts Inc lost its bid
to be dismissed from a lawsuit accusing the video game company
of involvement in an NCAA conspiracy to prevent college athletes
from being paid.
Plaintiffs led by former UCLA basketball star Ed O’Bannon
had accused the National Collegiate Athletic Association and its
marketing company of violating U.S. antitrust law by conspiring
to force students to sign away their ability to profit
commercially from playing college sports.
Arguing that the company is profiting improperly from using
their images and likenesses in its games, the plaintiffs said EA
agreed to abide by NCAA rules preventing student-athletes from
being paid, even after finishing their collegiate eligibility.
EA asked that it be dismissed from the case. It claimed that
its licensing agreements neither apply to former
student-athletes, nor show any promise “to price-fix, boycott,
or otherwise refuse to deal” with former student-athletes.
But in a Wednesday order, U.S. District Judge Claudia Wilken
in Oakland, California let the plaintiffs pursue antitrust
claims against the Redwood City, California-based company.
The licensing agreements “can fairly be read to evidence a
‘meeting of the minds’ between EA and the other defendants not
to compensate former student-athletes, where such a contract
would interfere with the student-athletes’ existing agreements
with the NCAA,” she wrote.
“Further, the agreements give broad authority to the
(marketing company) and NCAA to inspect EA’s financial records
related to the products, allowing them to see that payments were
almost never made to former student-athletes,” she added.
EA spokesman John Reseburg declined to comment. Jon King, a
lawyer for plaintiffs in the case, did not immediately respond
to requests for comment.
While many college athletes receive scholarships, strict
NCAA rules bar them from sharing in the millions of dollars that
schools receive from television and licensing deals. EA
produces games based on NCAA basketball and football.
Wilken had in May 2011 dismissed the plaintiffs’ original
antitrust claims against EA, but let the plaintiffs amend their
complaint to add facts that might suggest a conspiracy.
Wednesday’s decision allows the amended complaint to go forward.
EA has also faced lawsuits by former athletes over its
alleged unauthorized use of their images in its video games.
Among those athletes is Samuel Keller, a former quarterback
for Arizona State University and the University of Nebraska.
Keller is also a plaintiff in the litigation before Judge
Wilken. His claims were not addressed in Wednesday’s decision.
On Wednesday, EA settled separate litigation in which rival
Activision Blizzard Inc accused two former executives
who developed the “Call of Duty” video game of breaking their
employment agreements to develop games for EA.
The case is In re: NCAA Student-Athlete Name & Likeness
Licensing Litigation, U.S. District Court, Northern District of
California, No. 09-01967.
