NCAA accuses DraftKings of "March Madness" trademark infringement, asks court for restraining order
The NCAA accused online sportsbook DraftKings of trademark infringement associated with the association's men's and women's basketball tournaments and filed a complaint in federal court seeking an emergency restraining order.
In the complaint filed in the Southern District of Indiana, the NCAA requests that DraftKings stop using registered trademarks including "March Madness," "Final Four," "Elite Eight" and "Sweet Sixteen" or variations of them in sports betting products, promotional campaigns or marketing.
The NCAA claims its trademarks are used to identify, brand, advertise and distinguish the tournaments across broadcast media, digital platforms, merchandise, sponsorships and licensed commercial activities.
"On the eve of the Tournaments, DraftKings deliberately adopted and prominently began using the NCAA's iconic NCAA Basketball Marks, including confusingly similar variations thereof, to trade on — and usurp — the immense goodwill, recognition, and consumer trust embodied in those Marks at the precise moment of peak public attention," the complaint said.
Screenshots of DraftKings wagering platforms were included in exhibits attached to the complaint.
"DraftKings's unlawful use quickly proliferated across its consumer-facing websites and mobile applications, embedding the marks and logos into betting menus, promotional graphics, and marketing publications, to deliberately exacerbate consumer confusion and reinforce a false association with or sponsorship by the NCAA in order to continuously capitalize on the goodwill of the NCAA," the complaint said.
In a statement to CBS News on Saturday, DraftKings said that it is not engaging in trademark infringement.
"DraftKings does not use the term March Madness as a trademark, but rather uses it in plain text and as a fair use in the same manner that other tournaments are displayed, such as the NIT, in order to accurately identify the different tournaments and their respective games," DraftKings said. "This is protected speech under the First Amendment and is not a violation of any brand's trademark. We are confident that the courts will deny this request for an injunction."
The NCAA said it avoids any appearance of affiliation with gambling companies and has declined sportsbook sponsorships, banned sports betting by athletes and staff and publicly opposed prop bets and micro-bets because of its "strongly held belief that sports betting jeopardizes competitive integrity, endangers student‐athletes, and invites manipulation of games."
The NCAA noted it has launched initiatives to prevent harassment and improper influence in college sports and preserve the integrity of its competitions.
"Every day that DraftKings continues to use these marks, millions of sports fans — and, critically, college students and young adults who are particularly susceptible to gambling harm — are exposed to the false suggestion that the Association has authorized or endorsed DraftKings' gambling platform," the NCAA said in a statement to the Associated Press.
Earlier this week, NCAA President Charlie Baker told "CBS Mornings" that they are working hard to eliminate prop bets and sports gambling in college sports because it "puts a lot of pressure on the kids who are just trying to play the games."
"If you track any of the nonsense they deal with in the arena and on social media, it's brutal… its thousands and thousands of really abusive information and messages that are being directed at young people, coaches and officials too," he said, adding, "Frankly, it's horrible behavior … (that is) being driven by betting."