Anti-trust laws are designed to prevent monopolization. The technical terms are restraint of trade. By cutting back quantity a monopolist has an opportunity to increase prices (and therefore profits). If you saw "The Informant" that is what the justice department was investigating.
One of the most obvious cases of restraint of trade comes from the NFL's video game practices. They allow only one company (EA sports) to make a game with the NFL's likeness (and therefore the only game to have real NFL players in the games). EA must pay the NFL a lot of money for this right, and EA must make a lot of money making their version of the game (which is Madden). Now it is being challenged in court.
I am interested to see how the NFL will fight this one. Will they rely on their limited Anti-trust exemption (which they have... and this is what allows them to sign exclusive deals with DirecTV for broadcast rights). This is probably their best legal case, but I give this lawsuit a chance to change everything. With more competition comes choices and decreased prices.
(HT: Deadspin of all places)
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I'm not sure how I feel about this...based on the posting, it appears others can produce a football based game, just not use the NFL brand or players (employees of the NFL).
ReplyDeleteHow different is this from someone making dolls? Mattle (or another corp.) produces Barbie and prohibits others from using the brand, likeness, even the specific Barbie color "pink", etc., yet other manufacturer's can still produce similar dolls.
Now, if no other manufacturer can produce a football video game outside of EA sports, that's a problem.
Can you clarify this?
Whose say's other companies cannot try making football video games? I saw other football games on the market such as "NFL Blitz" which is made by Midway Games, Inc. The true question is, Who is going to buy it? Apparently nobody because Madden's graphics and features are the best. They have the best football video game. PERIOD. Is that their problem? No, it isn't! They make the best football video game and therefore they draw the most consumers. How are they a monopoly? There just isn't any competition and that is why they have so much money. The only part that I disagree with is the fact that they are the only company that can use the real NFL players. That in general may lead people to buy the game over others.
ReplyDeleteI don't play computer games so to me all this doesn't matter. What really matters most about EA and NFL's case is how long will NFL take while EA uses its products such as images of players and their logos to create their own similar version of games for their own profit. I'm sure NFL realizes that they have a huge market competition with EA and other video game developers.
ReplyDeleteIn my opinion, NFL should not be even in deal partnership with EA to avoid any legal battles like one is happening now. On the other hand, I think EA have a solid ground to stand on because when the company will be challenged in court, the creators can tell the judge that they pay hefty fees to NFL to use their content under binding agreement.
Sergei Blair
NFL has the right to sell to any business it wants. It does not matter what people say it is already copyrighted. They are aloud to make money from it.
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