The Greek Freak’s Dominance on the Basketball Court Not Enough
After a historic championship winning season on the basketball court,[1] Giannis Antetokounmpo continues to be active in the court of law.[2]. The 2021 NBA Finals MVP has used intellectual property laws to protect his broad brand. In 2014, he obtained a federal trademark registration for “GREEK FREAK,” which covers backpacks and clothing items.[3] Subsequently, Antetokounmpo has filed for the trademark’s use in entertainment services (including online games and gambling) and filed an application for the “GREEK FR34K” trademark as well.[4] Antetokounmpo has filed over 51 intellectual property infringement lawsuits since 2019 , including two more suits filed in March alone.[5] These lawsuits generally seek redress from online merchandisers for allegedly illegally selling items containing his nickname.[6]
One would think that the reason the “Greek Freak” keeps suing is because he has won these cases on merits. However, Antetokounmpo has only won his cases on procedural grounds.[7] 39 of these lawsuits have voluntarily been dropped or settled, four have been administratively closed due to filing errors, and three have ended in default judgments permanently enjoining further infringement and awarding Antetokounmpo a total of $140,000.[8]The amount gained from these lawsuits begs the question of why Antetokounmpo has been so active in litigation.[9]
An interesting case that analyzed the scope of the “GREEK FREAK” trademark was Antetokounmpo’s suit against Paleo Productions LCC, a spice seller and marketer.[10] In that case, Antetokounmpo objected to the magistrate judge’s denial of statutory damages under the Lanham Act.[11] Judge Koeltl, of the Southern District, overruled Antetokounmpo’s objection.[12] Antetokounmpo still merited about $10,000 for attorney’s fees. A permanent injunction was also granted, enjoining Paleo from any selling or advertising products bearing the trademark or any mark that was confusingly similar to it.[13] The court noted that the Lanham Act only grants statutory damages if the infringer used a “counterfeit mark,” meaning the mark must be used to “‘pass off’ [their] product as the original, rather than merely presented in a manner likely to confuse some consumers. . .”[14] The court reasoned that it was not plausible for a reasonable consumer to believe Paleo’s “Greek Freak” spice was one of Antetokounmpo’s products because he did not use or license any food products through this trademark.[15] Antetokounmpo further argued that his promotion and sponsorship of GFG’s 776 brand (which include spices) demonstrated that his trademark covered food products in addition to tees, backpacks and athletic attire.[16] The Court rejected this argument because trademark use can only be counterfeit “if used on the same goods or services for which the trademark is registered.”[17] The Court explained that the limited scope of the counterfeit definition is because counterfeiting is akin to a first-degree intellectual property offense.[18] Furthermore, the Court noted that Antetokounmpo’s claim for statutory damages was defective because Paleo did not indicate the “Greek Freak” spice blend as its origin.[19] Notwithstanding the deficient statutory damages claim, the magistrate judge’s finding for infringement was sustained because “terms not used as a mark may still generate confusion.”[20] Despite the injunction granted by the Southern District, Paleo’s “Greek Freak” spice can surprisingly still be purchased online.[21]
When reflecting on Antetokounmpo’s lawsuits, many are wondering why he is proceeding with them when they barely net any damages.[22] Winning only about $140,000 over 51 lawsuits just does not seem worth the NBA star’s money and time. The question is compounded because Antetokounmpo’s net worth is about $100 million,[23] and he signed a five-year $228 million contract extension in 2020.[24]
The answer could be that Antetokounmpo’s lawsuits are part of a trend for valuable athletes.[25] Because we live in a social-media dominated world, athletes do not need to rely on big-company endorsements to promote their brands anymore.[26] Rather, athletes believe they can do a better job policing their own brands.[27] While the dollar amounts these suits bring in may seem negligible, lawyers say being aggressive makes it easier to take down more sophisticated and lucrative trademark violators down the line.[28] Another explanation provided for this broad trend is that athletes are interested in doing something that can generate income long after the athletes’ playing days when they are not bringing in playing income anymore.[29] A third rationale is that since it only takes a couple of clicks of a button to purchase products online, so it is much easier for counterfeits to sell.[30] At the same time, the online marketplace can also be beneficial to trademark holders because it is now easier to find those counterfeit distributions.[31] In short, these “courtroom clashes” are less about collecting profits but more about maintaining control of one’s personal brand, which is not limited to the duration of their careers.[32] Looking at it this way, Antetokounmpo’s lawsuits can way outlive his five-year contract extension and keep making him money no matter where his career goes.
Footnotes
