As the NCAA Men’s Basketball Tournament entered its second day, the governing body overseeing college athletics filed a lawsuit in federal court on Friday against DraftKings, claiming the Boston-based company used March Madness and other registered NCAA trademarks without permission on its sports betting app.
In the 37-page complaint submitted to the U.S. District Court for the Southern District of Indiana in Indianapolis, the NCAA, which is based in the Indiana state capital, said DraftKings removed only some references when initially asked.
The annual three-week tournament, also known as March Madness in recognition of the upsets and dramatic finishes, attracts millions of viewers each year. It’s also one of the biggest sports betting events in the U.S.
Last week, the American Gaming Association predicted Americans would wager more than $3 billion on this year’s tourneys through legal sportsbooks. In addition to using the trademarks without permission, the NCAA also accused DraftKings of using “confusingly similar variations” of the association’s protected intellectual property. One such example, according to the NCAA, is DraftKings’ “March Mania” survivor contest.
Irreparable Harm to NCAA Reputation and Goodwill
The filing states:
“Every day that DraftKings is permitted to continue its unlawful use of the NCAA Basketball Marks and confusingly similar variations on its gambling platform undermines the NCAA’s longstanding anti‑gambling stances, erodes public trust, and inflicts continuing and irreparable harm on the NCAA’s reputation and the goodwill symbolized by its famous marks”.
The NCAA seeks a temporary restraining order against DraftKings that would take effect before the start of the Sweet 16, the regional semifinals.
DraftKings Cites Fair Use and First Amendment Protection
Beyond that, the lawsuit states that NCAA also seeks financial compensation from DraftKings, including covering attorneys’ fees and either triple the damages the governing body suffered or three times the profits DraftKings made. In a statement issued Saturday morning, DraftKings said:
“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… 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”.
