Source: https://id.scribd.com/document/2713066/National-Football-League-Players-Association-Inc-et-al-v-Comercial-Lt-Baroda-S-A-et-al-Document-No-1
Timestamp: 2019-11-21 21:23:15
Document Index: 768612852

Matched Legal Cases: ['§\n1332', '§ 1367', '§ 301', '§ 1391', '§ 1391', '§ 50', '§\n50', '§ 51', '§ 51', '§ 51']

National Football League Players Association, Inc. et al v. Comercial Lt. Baroda S.A. et al - Document No. 1 | Declaratory Judgment | Damages
COMPLAINT against National Football League Players Association, Inc., National Football League Players Incorporated. (Filing Fee $ 350.00, Receipt Number 604148) (Attachments: # 1 # 2 # 3 # 4 # 5 # 6 # 7 # 8 # 9)(laq) 1:2007cv00640 New York Southern District Court
simpanSimpan National Football League Players Association, Inc.... Untuk Nanti
National Football League Players Association, Inc. et al v. Comercial Lt. Baroda S.A. et al Doc.
Case 1:07-cv-00640-PAC Document 1 Filed 01/26/2007 Page 1 of 14
NATIONAL FOOTBALL LEAGUE PLAYERS )
ASSOCIATION, INC., and NATIONAL FOOTBALL )
LEAGUE PLAYERS INCORPORATED, ) Index. No: 07 Civ. 640
-against- )
COMERCIAL LT BARODA S.A. d/b/a BETUS, )
COMMERCIAL L.T. BARODA (CANADA) ) JURY TRIAL
LTÉE d/b/a BETUS, and ANGELCITI ) DEMANDED
ENTERTAINMENT, INC. )
Plaintiffs National Football League Players Association, Inc. (“NFLPA”)
and National Football League Players Incorporated (“PLAYERS INC”) (collectively,
“Plaintiffs”), by their attorneys Weil, Gotshal & Manges LLP, for their complaint against
Defendants Comercial LT Baroda S.A. d/b/a/ BetUS, Commercial L.T. Baroda (Canada)
Ltée d/b/a BetUS (collectively, “BetUS”), and AngelCiti Entertainment, Inc.
(“AngelCiti”) (collectively, “Defendants”), allege as follows:
1. BetUS operates a gambling website located at www.betus.com. Although
BetUS is licensed and registered in Canada and Costa Rica and purportedly conducts its
business within these jurisdictions, it specifically targets United States residents,
including those within this District, through a range of advertising and promotional
information. Many of these marketing materials “plug” the BetUS “American
sportsbook,” which, among other things, solicits bets on the outcome of National Football
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League football games. See BetUS Corporate Brochure, annexed hereto as Exhibit A, at
2. Upon information and belief, AngelCiti is an online casino software
licensor and gaming administrator whose executive officers control BetUS. Through
BetUS, AngelCiti is able to utilize space in Canada to house its servers and is provided
with essential telephone, bandwidth, and licensing services. AngelCiti itself admits that
its operations are dependent upon the ongoing success and viability of BetUS.
3. To promote the sportsbook feature of their gambling enterprises,
Defendants make extensive, unauthorized use of photographs, names, and likenesses
(“Images”) of several professional football players in the National Football League
(“NFL Players”) on the BetUS website and in their marketing materials.
4. These activities infringe upon the NFL Players’ statutory right of privacy.
Indeed, BetUS and AngelCiti are attempting to capitalize on the enormous goodwill and
reputation associated with NFL Players and have created the false impression that NFL
Players sponsor, approve of, endorse, or are otherwise affiliated with BetUS and
AngelCiti and their services, goods, and promotions. Defendants’ violations are
particularly flagrant and galling given the NFL’s and NFLPA’s strong anti-gambling
policies that were adopted to preserve the integrity of the game.
5. BetUS and AngelCiti are both aware that their conduct is unlawful.
Nonetheless, they have failed to respond to demands that they cease their violations,
forcing Plaintiffs to initiate this lawsuit.
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7. Plaintiff NFLPA is a Virginia corporation with its principal place of
business at 2021 L Street, N.W., 6th Floor, Washington, D.C., 20036. NFLPA is an
incorporated non-profit association that acts as the exclusive collective-bargaining
representative for NFL Players.
8. Plaintiff PLAYERS INC is a Virginia corporation with its principal place
of business at 2021 L Street, N.W., 5th Floor, Washington, D.C., 20036. PLAYERS INC
is a for-profit subsidiary of the NFLPA and, among other things, is engaged in the
business of licensing intellectual property rights of current and/or former NFL Players.
9. Upon information and belief, Defendant Comercial LT Baroda S.A. d/b/a
BetUS is a corporation licensed to do business in Costa Rica with its principal office
located at Oficentro Ejecutivo Sabana Sur, Edificio 2, Piso 3, San Jose, Costa Rica.
10. Upon information and belief, Defendant Commercial L.T. Baroda
(Canada) Ltée d/b/a/ BetUS is a limited company licensed to do business in Canada with
its principal office located at 4480 chemin de la côte-de-Liesse, Bureau 110-33, Mont-
Royal, Québec City, H4N 2R1, Québec, Canada and an additional office located at the
Kahnawake Reservation, Québec, Canada.
11. Upon information and belief, Defendant AngelCiti Entertainment, Inc. is a
Nevada corporation with its principal office located at 9000 Sheridan Street, Suite 7,
Pembroke Pines, Florida 33024.
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12. This Court has jurisdiction over Plaintiffs’ claims pursuant to 28 U.S.C. §
1332. The matter in controversy exceeds the value of $75,000, exclusive of interest and
costs. This Court has supplemental jurisdiction over all other claims asserted herein
under 28 U.S.C. § 1367(b).
13. This Court has personal jurisdiction over BetUS and AngelCiti pursuant to
N.Y.C.P.L.R. §§ 301 and 302 (McKinney 2001). By continuously soliciting business
from New York residents on the Internet through a website, and, upon information and
belief, accepting payment from New York residents, delivering cash winnings to New
York residents and in other ways, BetUS and AngelCiti have transacted business in New
York and have wrongfully caused the NFLPA and PLAYERS INC substantial injury in
the State of New York. BetUS and AngelCiti specifically target New York sports fans
through the BetUS.com website and promotional materials. BetUS and AngelCiti also
derive substantial revenue from interstate and international commerce. By their actions,
BetUS and AngelCiti have done significant damage to the NFLPA and PLAYERS INC.
Accordingly, BetUS and AngelCiti should reasonably have expected their actions to have
consequences in New York.
14. Venue is proper in the Southern District of New York pursuant to 28
U.S.C. § 1391(d) because an alien entity may be sued in any district. Moreover, venue is
proper pursuant to 28 U.S.C. §§ 1391(a) and 1391(c) because a substantial part of the
events giving rise to the claims arose in this District and because BetUS and AngelCiti
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PLAINTIFFS’ EXCLUSIVE GROUP LICENSING RIGHTS
15. Under paragraph 4(b) of the collectively bargained NFL Player Contract,
the vast majority of NFL Players expressly assign to the NFLPA all of their “group
licensing” rights, as follows:
Player hereby assigns to the NFLPA and its licensing affiliates,
if any, the exclusive right to use and to grant to persons, firms,
or corporations (collectively, “licensees”) the right to use his
name, signature facsimile, voice, picture, photograph, likeness,
and/or biographical information (collectively “image”) in
group licensing programs. Group licensing programs are
defined as those licensing programs in which a license utilizes
a total of six (6) or more NFL player images on or in
conjunction with products (including, but not limited to,
trading cards, clothing, videogames, computer games,
collectibles, internet sites, fantasy games, etc.) that are sold at
retail or used as promotional or premium items. . .The terms of
this subparagraph apply unless, at the time of execution of this
contract, Player indicates by striking out this subparagraph (b)
and marking his initials adjacent to the stricken language his
intention not to participate in the NFLPA Group Licensing
Program. . . . (emphasis added).
A copy of the NFL Player Contract is annexed hereto as Exhibit B.
16. The NFLPA holds such rights in connection with almost every NFL
player. These group licensing rights are then licensed to PLAYERS INC, which has the
right to enter into licensing contracts for products, services, and sponsors.
17. In addition to the NFL Player Contract, NFL Players execute separate
Group Licensing Assignments (“GLAs”), which are agreements between each player and
the NFLPA, under which the NFL Players’ group licensing rights are assigned to the
NFLPA. The NFLPA obtains the group licensing rights of the NFL Players through the
NFL Player Contract, the GLA, or both. A copy of a sample GLA is annexed hereto as
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18. Among other things, the GLA provides, in relevant part, that:
The undersigned player, a member of the National Football
League Players Association (“NFLPA”), hereby assigns to
the NFLPA and its licensing affiliates, if any, the exclusive
right to use and to grant to persons, firms, or corporations
(collectively, “licensees”) the right to use his name,
signature facsimile, voice, picture, photograph, likeness,
and/or biographical information (collectively, “image”) in
group licensing programs. (Emphasis added).
19. The GLA also explicitly defines “group licensing programs”:
Group licensing programs are defined as those licensing
programs in which a licensee utilizes a total of six (6) or
more NFL player images in conjunction with or on products
that are sold at retail or used as promotional or premium
items. (Emphasis added).
20. The GLA obligates the NFLPA to use its best efforts “to ensure that no
entity engages in a group licensing program without first obtaining a license from the
NFLPA.”
21. The GLA provides that it shall be construed under New York law.
22. Currently, PLAYERS INC grants licenses to hundreds of companies in the
United States and throughout the world to use various aspects of its group licensing rights
in connection with commercial products, including fantasy football and other interactive
games, websites, trading cards, memorabilia, and apparel. PLAYERS INC earns
royalties from these licenses. The commercial validity and propriety of Plaintiffs’
licensing rights have been confirmed in federal court. See Gridiron.com v. National
Football League, Player’s Association, Inc. & National Football League Players, Inc.,
106 F. Supp.2d 1309 (S.D. Fla. 2000).
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THE BETUS WEBSITE: www.betus.com
23. Upon information and belief, the Costa Rican and Canadian BetUS
entities, controlled by AngelCiti, jointly operate a gambling website, located at
www.betus.com (the “Website”), that offers betting on sports. The Website uses the
Images of six or more NFL Players, including NFL Players who have executed both an
NFL Player Contract and a GLA. Among other things, the Website exploits the
photographs, names, and likenesses of NFL Players to promote its online betting services.
The display of NFL Player Images by BetUS and AngelCiti in connection with its
gaming operations violates the exclusive right of the NFLPA and PLAYERS INC to use
the names or likenesses of six (6) or more NFL Players as licensed to the NFLPA and
PLAYERS INC by the NFL Players through the GLA and the NFL Player Contract.
24. The Website begins at a central “homepage” that exhorts visitors to
subscribe to its online gambling services: “We’re committed to helping you take your
sports betting game to the next level. As a result, you’ll play this NFL Football, NCAA
Football, and NBA Basketball season on the most advanced and easy-to-use sportsbook
and online gambling interface in the business. You’ll enjoy loads of free sports picks,
sports betting articles, wagering advice, free contests, and unmatched membership
benefits—we’ll help put you ahead of the game before you even start playing. Join the
BetUS team today and start playing like a pro!” A rotating series of photographs, some
of which feature NFL Players, serve as a backdrop. See Screenshot of BetUS.Com
Homepage, annexed hereto as Exhibit D.
25. The Member Benefits page of the Website boasts an image of six NFL
Players in a huddle, with the slogan, “You’re a winner even before you’ve made your
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first bet online” emblazoned on the screen. See Screenshot of BetUS.Com Member
Benefits Page, annexed hereto as Exhibit E.
26. The names of NFL Players are listed in conjunction with injuries and
sports statistics. See Screenshot of BetUS.Com NFL Team Statistics, annexed hereto as
27. Moreover, BetUS’ corporate brochure is replete with Images of NFL
Players, including Tom Brady, Akili Smith, Vince Young, and Peyton Manning. See
Exhibit A, at 3, 7, 9, 11, 13, 19, and 21.
28. Although not exhaustive, the above list amply illustrates that, through the
Website and the dissemination of promotional materials, BetUS and AngelCiti use six or
more NFL Player Images as defined in the GLA.
DAMAGE CAUSED BY BETUS AND ANGELCITI
29. As attested to in the foregoing paragraphs, the group licensing business of
PLAYERS INC has become an extremely profitable venture that is at the core of
PLAYERS INC’s and the NFLPA’s very existence. However, the success of the group
licensing business is not attributable solely to the personal achievements of, and personas
created by, the NFL Players themselves. Rather, the current success and popularity of the
group licensing business is due, in large part, to the skillful and professional manner in
which the NFLPA, and then PLAYERS INC, have managed and safeguarded the NFL
Players’ exclusive group licensing rights.
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30. By using attributes belonging to the NFL Players on the BetUS website
and in their promotional materials without authorization from the NFLPA or PLAYERS
INC, BetUS and AngelCiti have caused, are causing, and threaten to cause economic
damage to Plaintiffs by diverting business from authorized licensees, depriving the
Plaintiffs of licensing fees to which they are entitled for use of their exclusive group
licensing rights, and by creating potential and actual conflicts with already existing
licensees for Internet use. In addition, by engaging in the unauthorized use of NFL
Players’ attributes on the BetUS website, BetUS and AngelCiti are usurping the goodwill
associated with, and the commercial value of, the NFLPA’s and PLAYERS INC’s
exclusive group licensing rights—goodwill and value which the NFLPA and PLAYERS
INC have carefully developed, nurtured, and protected through the investment of
significant time, energy, money, and resources over many years.
BETUS’ AND ANGELCITI’S REFUSAL TO REMOVE INFRINGING
31. After becoming aware of the unauthorized use of NFL Player Images by
BetUS and AngelCiti, on June 22, 2006, PLAYERS INC wrote to AngelCiti to inform
that the BetUS website’s use of NFL Player Images was unauthorized and required a
license. PLAYERS INC demanded that BetUS and AngelCiti cease and desist from
using the NFL Player Images and confirm that such use had ceased within five days. See
Letter from Joseph A. Nahra, Esq. to AngelCiti Entertainment, Inc., dated June 22, 2006,
annexed hereto as Exhibit G.
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32. Having received no response from AngelCiti, PLAYERS INC wrote
directly to BetUS in Costa Rica on September 8, 2006 and insisted that it refrain from
using the NFL Player Images on its website. PLAYERS INC requested confirmation that
BetUS had stopped engaging in infringing activities within five days. See Letter from
Joseph A. Nahra, Esq. to Mike Foreman, dated September 8, 2006, annexed hereto as
33. On September 11, 2006, PLAYERS INC renewed its request that
AngelCiti cease and desist using the NFL Player Images. PLAYERS INC threatened to
pursue legal remedies unless AngelCiti immediately removed the NFL Player Images
from the BetUS website. See Letter from Joseph A. Nahra, Esq. to George Gutierrez,
dated September 11, 2006, annexed hereto as Exhibit I.
34. To date, neither AngelCiti nor BetUS has acknowledged—let alone
responded to—PLAYERS INC’s letters. Indeed, notwithstanding having been advised
several times in writing that its activities violated and continue to violate Plaintiffs’
exclusive group licensing rights, BetUS and AngelCiti persist in using the Images of six
or more NFL Players on the Website and in promotional materials, including NFL
Players in connection with whom Plaintiffs’ hold exclusive group licensing rights.
35. Plaintiffs repeat and reallege the allegations contained in paragraphs 1
through 34 as if fully set forth herein.
36. An actual controversy within this Court’s jurisdiction exists between
Plaintiffs and BetUS and AngelCiti in that:
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a. Plaintiffs have demanded that BetUS and AngelCiti cease and
desist from using six or more NFL Player Images, where Plaintiffs hold the
exclusive group licensing rights in connection with at least one of such NFL
Players, on the BetUS website and in its promotional materials in violation of
exclusive group licensing rights held by the Plaintiffs;
b. To date, BetUS and AngelCiti have refused to cease and desist
from their infringing activities;
c. The course of conduct taken by BetUS and AngelCiti has created a
reasonable apprehension that the exclusive group licensing rights held by the
Plaintiffs will continue to be violated.
37. Accordingly, Plaintiffs are entitled to a declaratory judgment that BetUS’
and AngelCiti’s use of six or more NFL Player Images, where Plaintiffs hold the
exclusive group licensing rights in connection with at least one of such NFL Players, on
the BetUS website and in its promotional materials violates Plaintiffs’ exclusive group
(The Statutory Right of Privacy)
38. Plaintiffs repeat and reallege the allegations contained in paragraphs 1
through 37 as if fully set forth herein.
39. Plaintiffs are the exclusive assignees of NFL Players’ rights to use or
license their Images in programs that utilize six or more NFL Player Images on or in
conjunction with products that are sold at retail or used as promotional or premium items.
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40. The use by BetUS and AngelCiti of the NFL Player Images, for whom
Plaintiffs hold exclusive group licensing rights, on the BetUS website and in its
promotional materials is so directly connected with the commercial sponsorship of
Defendants’ online betting enterprises as to constitute a use for advertising purposes or
for a commercial purpose for which written consent of the Plaintiffs, as the exclusive
assignees of NFL Players’ rights to use or license their Images in group licensing
programs, is required by N.Y. CIV. RIGHTS § 50 (McKinney 1992).
41. Plaintiffs have been injured by virtue of BetUS’ and AngelCiti’s use of
NFL Player Images in violation of Plaintiffs’ exclusive rights under N.Y. CIV. RIGHTS §
50 (McKinney 1992) and are entitled to recover compensatory damages for such injury,
including but not limited to an amount that would have been a reasonable royalty, as well
as exemplary damages under N.Y. CIV. RIGHTS § 51 (McKinney 1992).
42. Plaintiffs are also entitled to equitable relief under N.Y. CIV. RIGHTS § 51
(McKinney 1992) in the form of an injunction prohibiting BetUS and AngelCiti from
using the Images of NFL Players in connection with whom Plaintiffs hold exclusive
group licensing rights on the BetUS website and in its promotional materials and from
taking any other action in violation of Plaintiffs’ exclusive rights.
43. Plaintiffs are entitled to recover all profits of BetUS and AngelCiti
attributable to its violation of Plaintiffs’ exclusive rights under N.Y. CIV. RIGHTS § 51
(McKinney 1992).
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44. Plaintiffs repeat and reallege the allegations contained in paragraphs 1
through 43 as if fully set forth herein.
45. Plaintiffs will suffer irreparable injury unless an injunction is issued
barring BetUS and AngelCiti from using six or more NFL Player Images or taking any
other action inconsistent with or in violation of Plaintiffs’ exclusive group licensing
47. BetUS and AngelCiti will suffer no cognizable damage if such an
injunction is issued because BetUS and AngelCiti have no right to violate the exclusive
licensing rights of Plaintiffs.
48. The issuance of the requested injunction would not be adverse to public
1. A declaration that the use by BetUS and AngelCiti of the Images of NFL
Players in connection with whom Plaintiffs hold exclusive group licensing rights violates
Plaintiffs’ exclusive group licensing rights;
2. An award of compensatory and punitive damages to Plaintiffs in an
3. A permanent injunction prohibiting BetUS and AngelCiti from using the
Images of NFL Players on the BetUS website and in its promotional materials in
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connection with which Plaintiffs hold exclusive group licensing rights, or from taking
any other action that is inconsistent with, or in violation of, Plaintiffs’ exclusive group
4. An award in the nature of disgorgement of all profits of BetUS and
AngelCiti attributable to its violations of Plaintiffs’ exclusive rights; and
5. Such additional and further relief, at law and in equity, as the Court deems
to be just and proper.
Pursuant to Rule 38(b) of the Federal Rules of Civil Procedure, Plaintiffs demand
__/s/ Bruce S. Meyer_____
Bruce S. Meyer (BM 3506)
Cecilia A. Silver (AS 5913)
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