News

Class-action suit against EA Sports moves forward
Posted: 17.10.2012 05:50 by JonahFalcon Comments: 8
The anti-monopoly class action lawsuit against EA Sports will be moving to the courts, according to court docs which accuse the publisher of “an unlawful and anti-competitive series of exclusive agreements with the National Football League, the NFL Players Union, Arena Football League and the National Collegiate Athletic Association."

The class action suit is representing every US resident who purchased a new copy of any Madden NFL, NCAA Football or Arena Football title published by Electronic Arts in the past 7 and a half years.

According to the lawsuit papers, “Electronic Arts has driven its competition out of the market for interactive football software, including most significantly Take Two Interactive Software, Inc., the maker of the interactive football software title NFL 2K5 and has prevented additional competitors from entering the market."

Back in 2004, 2K Sports released its last NFL title, NFL 2K5, which was considered superior to Madden NFL 05, and which also sold for a mere $19.99 USD, as opposed to Madden's $49.99 price tag.

If the plaintiffs win, “The Settlement provides that Electronic Arts will not enter into an exclusive trademark license with the AFL for five years from the date of approval of the Settlement; and that Electronic Arts will not renew its current collegiate football trademark license with the CLC on an exclusive basis for five years after it expires in 2014; and that Electronic Arts will not seek any new exclusive trademark license for the purpose of making football videogames with the CLC, the NCAA, or any NCAA member institution covered by the current exclusive license for five years after the expiration of the current CLC agreement.”

The class action lawsuit was finalized in July, so this suit will probably not reach a verdict as EA has prepared its $27M settlement.

Comments

By nocutius (SI Elite) on Oct 17, 2012
nocutius
I still don't understand what's wrong here. EA paid for an exclusive license, any other interested party (with enough cash) could have competed for that right. Why go against EA and not the holder of the license?
By Chris_Spray (SI Veteran Newbie) on Oct 17, 2012
Chris_Spray
They're abusing monopoly power.
By the_fourth_horseman (SI Veteran Member) on Oct 17, 2012
the_fourth_horseman
That might be true, but what are the damages for those who bought Madden over the past years? Would free competition have resulted in a price-tag lower than 50 bucks, or a higher quality game? Is the Madden series THAT bad? I dislike Football games so I really don't know...

I can only see liability towards other game studios, such as Take 2.
By nocutius (SI Elite) on Oct 17, 2012
nocutius
@Chris_Spray
Yes but in this case that monopoly is within their right since they explicitly payed for that to the owner of the license. Anyone else had the exact same chance to acquire said license.
If an exclusive license is wrong, than why can the owner get away with it?

I'm clearly missing a point here since I honestly don't see anything wrong here. That's what exclusive licensing is all about, guaranteeing yourself the exclusive right to market a certain IP. It can not be any other way by definition, otherwise it would not be exclusive anymore.
By the_fourth_horseman (SI Veteran Member) on Oct 17, 2012
the_fourth_horseman
The story gives the impression that the plaintiffs actually have a case, which gets accentuated by the fact that EA is prepared to settle. It seems, then, that the exlusive licensing here can be wrongful to others and that these others did NOT have the exact same chance as EA to acquire the licence. Otherwise it wouldn't have come this far.

Exclusive licensing is a practise (not a right by law, or even a legal term) and is therefore not inherently lawful. Hence, it is perfectly possible that it is wrongful in this matter.

That still leaves the question ; define the damages to the plaintiffs who bought the games?? Anybody a clue?
By JonahFalcon (SI Elite) on Oct 17, 2012
JonahFalcon
They do have a case. A strong one.

For one, look at this evidence: http://www.wired.com/gamelife/2012/10/fifa-13-wii/
By nocutius (SI Elite) on Oct 17, 2012
nocutius
Holy sh*t!
That's beyond evil :(
By stuntkid (SI Elite) on Oct 19, 2012
stuntkid
I am shocked!