NCAA Fumbles over Video Games

Incorporating physical characteristics of National Collegiate Athletic Association players helps make video gaming more realistic, but at what cost? Rob Carey, a Hagens Berman attorney, spoke with ESPN recently about a class-action lawsuit we filed against the NCAA and Electronic Arts Inc.

NCAA bylaws clearly state that the commercial licensing of an NCAA athlete's "name, picture or likeness" is prohibited and rightfully so. These athletes already face overwhelming pressure to perform on and off the field.

In the segment, Carey argued that the NCAA failed to honor its promise to protect its athletes from exploitation by allowing EA to monetize on college players without permission. In many of EA's popular college sports video games, NCAA athletes are subject to having their likeness plastered across thousands of television screens while EA, and likely the NCAA, reap the financial benefits.

Take the July launch of NCAA Football 2010, which featured thousands of players from 300 NCAA schools in terms of name, build, physical characteristics, jersey number, stats and so forth. Consumer markets researcher NPD Group reported that the video game sold nearly 700,000 copies in the U.S. alone, and was the best-selling video game for July 2009.

With the video game selling at retail for about $40, EA generated an estimated $28 million just two weeks after the game hit the market.

NCAA is aware that EA uses its college program and athletes in its video games. We believe NCAA received royalties from EA, given that almost 90 percent of NCAA's total revenue is generated by television and marketing rights.

We argue the rights of NCAA athletes should not be dismissed for profit. The NCAA needs to abide by their own bylaws or they should be required to secure permission and provide compensation to all players for use of their names or images in any video game franchise.

This plays true for pro football players. EA paid the NFL Players Union nearly $35 million last year for the use of players' names and likenesses in NFL games.

A story in USA Today read, "NCAA insists college players not be used as sales tools, though the task force further recommends guidelines governing the use of their names and likenesses be loosened as long as it ‘does not portray the student-athlete in a manner as promoting or endorsing the sale or use of a commercial product or service.' But exactly where is that line?"

If student-athletes cannot be used to promote or endorse a product, they certainly cannot be the product, at least not without their permission.

Hagens Berman seeks to find justice for college athletes exploited by acts not authorized by their NCAA contract. For more information about this case, visit http://hbsslaw.com/cases/ncaa---video-games.