As the NCAA Men's Sweet 16 tournament is set to begin, the NCAA is gearing up for a legal battle against DraftKings. Just hours before the game between Purdue and Texas, NCAA lawyers will argue in an Indiana federal court to secure a temporary restraining order (TRO) against the Boston-based sports betting company. They aim to prevent DraftKings from utilizing trademarked content associated with the NCAA on its betting platform.
U.S. District Judge Tanya Walton Pratton has scheduled a hearing for the TRO on Thursday at noon ET in Indianapolis. Each side will have an hour to present their arguments, and the court does not anticipate any witness testimonies.
The timeline for a decision regarding the TRO remains unclear, as it may be issued immediately after the two-hour hearing or at a later date.
The NCAA initiated legal proceedings against DraftKings on Friday, coinciding with the start of the men's first-round games and the women's round of 64. The organization claims that DraftKings has used trademarked phrases such as 'March Madness,' 'Sweet Sixteen,' 'Elite Eight,' and 'Final Four' on its betting app without obtaining the necessary permissions.
Additionally, the NCAA asserts that DraftKings has employed language that could misleadingly imply a partnership between the two entities, including the term 'March Mania.'
In response, DraftKings defended its actions, stating that its use of these trademarks falls under the fair use doctrine, a legal principle established by federal courts in the 1800s and later formalized by the Copyright Act of 1976. This act outlines four criteria to determine if the use of protected intellectual property is lawful.
On Wednesday, the NCAA submitted a declaration from Dan Gavitt, the senior vice president for basketball. In a 15-page document, parts of which were redacted, Gavitt emphasized that the trademarked terms are vital to the NCAA's revenue, which supports the costs of its 92 championship events, including travel expenses for student-athletes.
Moreover, the NCAA generates income through corporate partnerships that allow sponsors to use its trademarks. Gavitt's filing identified 17 sponsors, including major brands like AT&T, Capital One, Coca-Cola, Marriott, Reese’s, and Wendy’s.
Gavitt highlighted that these promotional efforts, which encompass various advertising and marketing strategies, make NCAA Basketball Marks among the most recognized and commercially valuable sports brands in the U.S., fostering significant consumer awareness and goodwill.
Interestingly, the NCAA has refrained from partnering with the gambling industry for advertising. In fact, it previously sued New Jersey and major professional sports leagues to halt the state's sports betting initiatives. This lawsuit contributed to the landmark 2018 Supreme Court decision that deemed the Professional and Amateur Sports Protection Act unconstitutional, paving the way for New Jersey's sports betting expansion.