Antitrust Law Daily Wrap Up, ANTITRUST NEWS: American Needle agrees to settle claims over NFL-Reebok exclusive licensing deal, (Feb 18, 2015)
Law Firms Mentioned:Covington & Burling | Gozdecki, Del Giudice, Americus & Farkas LLP | Law Office of Jeffrey M. Carey
Organizations Mentioned:American Needle, Inc. | Covington & Burling, LLP | National Football League | New Orleans Louisiana Saints | Reebok International, Ltd.
By Linda O’Brien, J.D., LL.M.
Novelty vendor American Needle has agreed to settle its claims that the National Football League’s exclusive contract with Reebok for licensed apparel was an illegal restraint of trade, according to a docket entry made in the federal district court in Chicago (American Needle, Inc. v. New Orleans Louisiana Saints, February 16, 2015).
American Needle held nonexclusive licenses from the NFL’s licensing affiliate, NFL Properties, to make and sell hats bearing the logos of NFL teams for more than 20 years. In 2000, the NFL decided to grant headwear licenses on an exclusive basis and accepted bids from various manufacturers. Reebok was the successful bidder, and the company executed an agreement with NFL Properties for an exclusive license to make and sell NFL hats. American Needle, one of the unsuccessful bidding manufacturers, filed suit against the NFL, NFL Properties, Reebok, and 30 of the league’s 32 teams, alleging that the exclusive agreement violated the Sherman Act.
In 2010, the U.S. Supreme Court ruled that the challenged conduct constituted concerted activity for purposes of Section 1 of the Sherman Act. In April 2014, the district court held that American Needle made a sufficient showing of a less competitive market to preclude summary judgment. However, the court rejected the vendor’s contention that its claims should be analyzed under an abbreviated, or "quick look" review, rather than a full rule of reason analysis.
After conducting settlement conferences with a magistrate judge, the parties reached an agreement in principle. The details of the settlement have not been released.
Attorneys: Jeffrey M. Carey (Law Office of Jeffrey M. Carey) for American Needle, Inc. Dean Cary Kalant (Gozdecki, Del Giudice, Americus & Farkas LLP) for New Orleans Louisiana Saints. Gregg Levy (Covington & Burling) for National Football League.
Companies: American Needle, Inc.; New Orleans Louisiana Saints; National Football League; Reebok International, Ltd.
News: Antitrust IllinoisNews