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NCAA Files Suit Against EA Over NCAA Player Likeness Settlement
In September, we reported that EA and the Collegiate Licensing Corporation (CLC) had settled a suit with a group of NCAA athletes. The legal matter revolved around the use of player likenesses without permission. Following the agreement, only the NCAA remained adamant. Now, the athletic organization is suing its former partners.
The NCAA alleges that EA and the CLC have breached contractual terms and that the CLC failed to provide the proper oversight to EA. The athletic organization seeks to impede the execution of the $40 million settlement.
The NCAA also seeks remedy that would force EA to cover the group for any judgement of liability, including legal fees. According to the suit, the NCAA claims that EA failed to maintain the proper liability insurance that would otherwise have covered the NCAA in the event of a lawsuit like this.
[Source: USA Today]
Our Take
The NCAA doesn’t want to be the last defendant standing and clearly sees the EA/CLC settlement as a betrayal. This is a desperate measure, and should it fail, I wouldn’t be surprised to see the NCAA reach a settlement with the athletes.
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