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In current mode: “SportsTrax displays the following information on NBA games in progress: (i) the teams playing; (ii) score changes; (iii) the team in possession of the ball; (iv) whether the team is in the free-throw bonus; (v) the quarter of the game; and (vi) time remaining in the quarter. The information is updated every two to three minutes, with more frequent updates near the end of the first half and the end of the game. There is a lag of approximately two or three minutes between events in the game itself and when the information appears on the pager screen.” The NBA relied on a Supreme Court case from 1918 to advance the argument that Motorola and STATS were misappropriating “hot news.” Court’s use a multi-pronged test to determine whether a defendant is misappropriating the plaintiff’s intellectual property, two of the prongs of the test ask about free-riding. The first is whether the defendant’s use of information constitutes free-riding, meaning that the plaintiff put in effort into generating the information and the defendant is cutting out a part of the process and using the end result of the plaintiff’s process, depriving the plaintiff of the full benefit of their efforts in development. The second prong that references free-riding states: “the ability of other parties to free-ride on the efforts of the plaintiff would so reduce the incentive to produce the product or service that its existence or quality would be substantially threatened.” The Second Circuit Court of Appeals found: “a lack of any free-riding by SportsTrax ….” The key to the Court in the case was that Motorola and STATS were collecting the stats themselves, they were not relying on official NBA statistics that they were then http://livebettinguue.blogspeak.net simply repackaging. The NBA; however, had another problem with their misappropriation claim, one that is likely still a problem, in order to prevail on a “hot-news” misappropriation claim a defendant needs to be “in direct competition with a product or service offered by the plaintiffs.” The sports leagues’ argument that they are entitled to a fee of some sort for legalized sports betting is one of those statements that sounds reasonable until you begin to dig into what they are really asking for. More than a lump sum payment, or a fixed percentage of the amount wagered, or http://holidaybetva0nu.gaia-space.com even a percentage of bookmaker profits, what the leagues are seeking now is for the establishment of a property right in the games that they facilitate. The case law does not support a finding that the games themselves, or the scores of the games are protectable intellectual property rights. What the NBA and MLB are asking is for state legislatures to overrule judicial precedent. When Silver said that the NBA feels the same as a musician who should receive a royalty, he is throwing out a false equivalency (much like daily fantasy sports companies who have compared the games to everything from spelling bees to milking cows, at this point I assume DFS has been compared to every activity that requires some modicum of skill).