Law360, New York (July 20, 2010, 10:58 AM ET) -- The U.S. Supreme Court ruled on May 24 that the licensing activity of the National Football League, its 32 separately owned teams, and the teams’ jointly owned affiliate, National Football League Properties (NFLP), is concerted action that could trigger liability under Section 1 of the Sherman Act. Section 1 outlaws contracts, combinations and conspiracies that unreasonably restrain trade.

Extinguishing the NFL’s hopes for a categorical exception, the court held that the league’s joint-licensing activities must be evaluated under the rule of reason, under which a court...