Copyfutures: MLB Infringement suit out of left field?

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September 16, 2004

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MLB Infringement suit out of left field?

Getting back to the infringement issues recently arising over "real time" gamecasts on the Internet: DDB Technologies filed suit on September 3 against Major League Baseball, alleging that the MLB was using technology under patent by DDB. More specifically, the suit was against MLB Advanced Media, the interactive/internet-based division of MLB. DDB is an intellectual property holding company out of Texas, and although their allegations against MLB Advanced Media (MLBAM) are patent-based rather than copyright, this suit is a good example of what the future may hold for gamecasts.

DDB claims to have patents on multiple interactive features that MLBAM uses on their website, including condensed and searchable video highlights. live play-by-play text, graphics and animation, real time personalized notification, personalized post-game highlights, and live fantasy baseball stat trackers. They allege to have patented these features in the early 90's, long before gamecasts were available to fans on the Net. This isn't the first time DDB has dealt with patent infringement issues - last year, a similar problem arose with the site Sportsline.com. Eventually, the two companies were able to agree on a licensing deal that gave Sportsline access to DDB's interactive sports features for use on their own site.

The solution might not be so simple this time - MLBAM is disputing the charges as being meritless, and is eager to meet DDB in court to settle the argument. They dismiss the charges rather quickly, considering DDB is implicating some of the MLB site's most creative and innovative features - features that attract a huge amount hits for the site. DDB, on the other hand, claims to have been very patient with MLBAM. David Barstow, president and founder of DDB, says he repeatedly met with MLB executives throughout the mid to late 90's to discuss the game simulation technology he patented. Soon after, he says, MLBAM began using his technology on their website without the permission of DDB. When DDB contacted MLBAM about a license to use this technology, MLBAM turned them away. Barstow says his company had no choice but to file suit to "protect their intellectual property."

It seems like the best solution for everyone would be for the MLBAM to reach a licensing agreement with DDB, in order to secure their continued use of DDB's technology and keep their fans happy. In June of 2003, Sportsline.com was able to settle the infringement issues arising from its use of real time technology by negotiating with DDB for a non-exclusive license to three DDB patents. This gave them the freedom to continue using real time gamecasts, play-by-play, and live stat updates without fear of a lawsuit from DDB. A Sportsline exec commented that a license to use DDB's technology enables Sportsline.com to provide their users with "the best experience possible." Sportsline was the first website licensee of DDB's patents, a trend that DDB hoped would continue in the future. They have a strategic IP plan, as they realize how important and desired their technology is to companies who want to compete with Sportsline - which is probably why they are so surprised at the MLBAM's refusal to negotiate a licensing agreement.

The bottom line seems to be that MLBAM is using DDB's technology without a license, illegally incorporating this patented technology into their own website. Although smaller companies who go up against giants (a sports league, for example) in these sort of Internet patent-infringement cases usually get crushed, Eolas, a small start-up company won a $565 million suit against Microsoft for its violation and illegal use of a technological patent. Maybe this is giving DDB some hope. Right now, MLB offers about 60 games per week available on the internet for $14.95 per month or $79.95 for the full season. From these webcasts derive the live play-by-play, updated stats, video and postgame highlights that DDB says they own the patent to. MLB asserts that the revenue generated by their webcasts will be shared with all 30 MLB teams - but what about with DDB? All they are looking for is their fair share of MLBAM's (currently) illegal use of their patents, and until MLBAM agrees to start talking about becomming a licensee, I think while DDB might be the underdog, they have the stronger case here. And what's most ironic of all is that MLB was the first major sport to speak out against other sites using gamecasts, claiming those sites were infringing on the MLB's broadcast copyright! Talk about a double standard. I am a huge MLB fan, but before they start suing ESPN.com for copyright infringement, they need to get their own patent infringement suit straightened out.

Posted by Laura Keegan on September 16, 2004 at 10:09 AM in Copy Sports | Permalink

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