Articles Posted in U.S. Court of Appeals for the Seventh Circuit

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Former students who participated on Penn’s women’s track and field team, regulated by the National Collegiate Athletic Association (NCAA) sued Penn, the NCAA, and more than 120 other NCAA Division I member schools, alleging that student athletes are “employees” within the meaning of the Fair Labor Standards Act (FLSA), 29 U.S.C. 201 and violated the FLSA by not paying their athletes a minimum wage. The district court dismissed, holding that the plaintiffs lacked standing to sue any of the defendants other than Penn, and failed to state a claim against Penn because student athletes are not employees under the FLSA. The Seventh Circuit affirmed. The plaintiffs did not plausibly allege any injury traceable to, or redressable by, any defendant other than Penn. Citing the Department of Labor Field Operations Handbook, the court reasoned that NCAA-regulated sports are “extracurricular,” “interscholastic athletic” activities and that the Department did not intend the FLSA to apply to student athletes. View "Berger v. National Collegiate Athletic Association" on Justia Law

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In 2013, the U.S. Soccer Team Players Association disapproved the US Soccer Federation’s proposed tequila poster advertisement, which contained player images. The Federation issued a notice, declaring that the collective bargaining agreement/uniform player agreement (CBA/UPA) did not require Players Association approval for use of player likenesses for six or more players in print creative advertisements by sponsors. The Players Association filed a grievance and demanded arbitration, arguing that the CBA/UPA did require approval, based on the past practice of the parties. The arbitrator issued an award in favor of the Players Association. The district court confirmed the award. The Seventh Circuit reversed. The contractual provisions are clear and unambiguous, establishing that the parties contemplated and anticipated the use of player likenesses for six players or more and agreed only to “request, but not require” a sponsor contribution to the applicable player pool for advertisements of the type at issue. No other terms that contradict this “request, but not require” condition. View "United States Soccer Fed'n Inc. v. United States Nat'l Soccer Ass'n" on Justia Law

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Eberts is a film producer whose credits include Lord of War (2005) and Lucky Number Slevin (2006). After a string of failed movies, in 2009, he filed for bankruptcy. He was introduced to Elliott, an Illinois novice author who wanted to adapt his book into a movie. Eberts and Elliott formed a limited liability company. Both agreed to invest money. Eberts did not disclose his insolvency. Over the next year Elliott wired $615,000 to accounts controlled by Eberts. Eberts applied only 10% of that money toward the movie; he paid his father and bankruptcy attorney and spent the rest on personal items like art, furniture, designer clothing, and fine wines. Eberts also solicited and received a $25,000 loan from Elliott for an unrelated project and never repaid it. After Elliott discovered the scam, he filed suit. Later, Eberts pleaded guilty to seven counts of wire fraud, 18 U.S.C. 1343, and three counts of money laundering, section 1957, and was sentenced to 46 months’ imprisonment, the top of the guidelines range. The Seventh Circuit affirmed, rejecting an argument that the court failed to consider the 18 U.S.C. 3553(a) sentencing factors or Eberts’s mitigation arguments, but based the sentence on unsupported facts. View "United States v. Eberts" on Justia Law

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Slep-Tone has filed more than 150 suits under the Lanham Act, 15 U.S.C. 1051, challenging the unauthorized copying and performance of its commercial karaoke files. In addition to the registered Sound Choice trademark, Slep-Tone claims ownership of distinctive trade dress, consisting of typeface, style, and visual arrangement of the song lyrics displayed in the graphic component of the accompaniment tracks; a display version of the Sound Choice mark; and the style of entry cues that are displayed to signal when singers should begin to sing. Slep-Tone alleges that it has used this trade dress for decades and that it is sufficiently recognizable to enable customers to distinguish a Slep-Tone track from a track produced by a competitor. The pub operators own hard drives containing allegedly illegitimate “bootleg” copies of Slep-Tone tracks and, allegedly, are improperly “passing off” the copies as genuine Slep-Tone tracks. The district court dismissed claims of trademark infringement, reasoning that the complaint did not plausibly suggest that the unauthorized use of Slep-Tone’s trademark and trade dress is likely to cause confusion among customers as to the source of any tangible good containing the tracks, a prerequisite to relief under either cited section of the Lanham Act. The Seventh Circuit affirmed. Slep-Tone’s real complaint concerns theft, piracy, and violation of Slep-Tone’s media policy rather than trademark infringement. View "Phoenix Ent. Partners, LLC v. Rumsey" on Justia Law