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The proposed settlement, filed with the court on July 19, 2012, would establish a $27 million fund for consumers who purchased Madden NFL, NCAA Football or AFL games published by EA. If the settlement is approved by the court, consumers who purchased a sixth generation title (GameCube, PlayStation 2, and Xbox) may receive up to $6.79 per game. Those who purchased a seventh generation title (Wii, Xbox 360 and PlayStation 3) may be entitled to as much as $1.95 per game under the terms of the proposed settlement.
As consideration for the settlement, Electronic Arts has agreed to refrain from renewing or otherwise entering into an exclusive trademark license with the AFL for five years from the final date of approval of the proposed settlement. Moreover, Electronic Arts agrees not to renew its current collegiate football trademark license with the CLC on an exclusive basis after that license expires in 2014, or seek any new exclusive trademark license regarding football video games with the NCAA, the CLC, or any NCAA member institution covered by the current exclusive license for a period of five years thereafter.
This appears to mean that EA will be unable to have an exclusive license for NCAA Football for five years beginning in 2014. Given that the last college football competitor came from Sega's College Football 2K3 and the costs that would incur (start-up, development on the 'next' next-gen, licensing, etc.), it does not seem likely a competitor will emerge. TGT will add more information as it becomes available. Continue on for more information and additional coverage.
From the press release from Hagens Berman LLP:
Attorneys representing purchasers of Electronic Arts, Inc. (NASDAQ: ERTS) (“EA”) football video games have reached a proposed settlement over claims that the gaming giant violated antitrust and consumer protection laws and overcharged consumers for the games.
The case, originally filed June 5, 2008, in the United States District Court for the Northern District of California, alleges that EA violated antitrust and consumer protection laws by establishing exclusive license agreements with the National Football League (NFL), National Collegiate Athletic Association (NCAA), and the Arena Football League (AFL). The agreements gave EA the exclusive right to produce football video games with the teams, players and other assets of the NFL, AFL and NCAA, the lawsuit states.
The proposed settlement, filed with the court on July 19, 2012, would establish a $27 million fund for consumers who purchased Madden NFL, NCAA Football or AFL games published by EA. If the settlement is approved by the court, consumers who purchased a sixth generation title (GameCube, PlayStation 2, and Xbox) may receive up to $6.79 per game. Those who purchased a seventh generation title (Wii, Xbox 360 and PlayStation 3) may be entitled to as much as $1.95 per game under the terms of the proposed settlement.
It also stipulates that EA will not sign an exclusive license arrangement with the AFL for five years and will not renew its current agreement with the NCAA, which expires in 2014, for at least five years.
“After more than four years of hard-fought litigation, we have reached a settlement that we strongly believe is fair to consumers,” said attorney Steve Berman, managing partner of Hagens Berman, the law firm representing consumers. “We look forward to moving this process forward and asking the court to approve this settlement, which we think is in the best interests of the class.”
On April 6, 2011, the court certified a class of consumers in the case, including all persons who purchased Madden NFL, NCAA Football or AFL games published by EA between January 1, 2005, and the present.
The proposed settlement must be approved by the court before it is final.
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