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Now the NCAA has sued EA over alleged breach of contract
Now the NCAA has sued EA over alleged breach of contract
November 21, 2013 | By Mike Rose

November 21, 2013 | By Mike Rose
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It feels like the various lawsuits between Electronic Arts and groups of current and former NCAA student athletes are neverending -- and now the National Collegiate Athletic Association itself has jumped onboard, suing EA for alleged breach of contractual obligations.

The last couple of years have seen lawsuits revolving around EA's use of NCAA player likenesses without compensation. Understandably, the NCAA said earlier this year that it will not renew its contract with EA Sports when it expires next year.

Now the NCAA has filed a lawsuit with a Georgia state court, according to USA Today, stating that both EA and Collegiate Licensing have breached contracts they had with the NCAA.

EA did not maintain liability insurance that was sufficient to cover "pending third-party claims," the NCAA claims, while the CLC did not adequately supervise EA in its obligations.

As a result, the NCAA is looking to block a recent settlement that Electronic Arts came to with several uncompensated athletes, stating that EA should have to cover various related costs and legal fees.



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Michael Joseph
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http://en.wikipedia.org/wiki/Liability_insurance

Can anyone shed some light on liability insurance as it relates to developing and publishing video games?

Maybe you make a video game that has characters called "Klingonites" and resemble Star Trek Klingons and you get sued by Paramount Pictures... would liability insurance cover this? Why would the insurer agree to cover such a high risk production? Surely they would want to take a look at whatever it is they are being asked to insure? How else would they figure out a premium to charge?

Maybe you make a video game and one of your developers unbeknownst to you sneaks in some naughty things that an end user unlocks and spreads the instructions for others online. A class action lawsuit follows alleging one thing or another... would your insurer cover this?

Maybe you release a game that has a severe bug that deletes hard disk data. You get sued by citizens of a country where EULAs don't matter....

Maybe one of your developers is lazy and is using copyrighted art assets or source code.

Maybe one of your developers is a bonafide criminal and sneaks in spyware/rootkit/identity/financial theft sniffing code & evil gremlins.

Maybe Zynga sues you because your game looks too much like the game they make.

How long do you need to hold the insurance? Surely the first year is the most risky so would insurers demand a guaranteed term of coverage exceeding 1 year? What kind of money are we talking about here? If I'm an insurer in this line of work maybe I want a percentage of sales revenue?

you get the idea. It all sounds very complicated.

Todd Boyd
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You guys are using clickbait in the margins of your site now? For shame.

Justin Kovac
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NCAA needs a scape goat for this portion of athletic exploitation that they got sued for.

Freek Hoekstra
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wosrt thing is that the athletes who were going to be compensated are now not getting money because the NCAA who is supposed to watch out for them) is apparantly blocking it....

this is beyond sad!

Benjamin Quintero
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I wonder at what point it just isnt worth it to deal with the license and just put out a footballcraft style game that lets the community build their own rosters, uniforms, and share their leagues via social network strategies.


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