American Needle's Argumentative Essay

two decades from the 1980s to 2001. In 2000, the National Football League began seeking out potential replacements for their official provider of headwear and began accepting manufacturers’ bids for a licensing agreement. Once the NFL’s contract with American Needle eventually expired in March 2001 and was not renewed. The NFL went with Reebok as its new licensee of their headgear. This is where the legal issue comes into play. On December 1, 2004, American Needle brought the present action against the New Orleans Saints asserting that the Sherman Antitrust Act was violated and American Needle alleged that the defendants’ exclusive arrangement with Reebok constitutes a restraint of trade under the per se rule and the rule of reason, in violation of section 1 of the Sherman Antitrust Act which states “Every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among several States, or with foreign nations, is hereby declared to be illegal. Every person who shall make any contract or engage in any
v. Brown University (1993), and Standard Oil Co. v. United States (1911) as procedural history. However, a restraint of trade may be determined to be a violation of the Sherman Act after a short or brief analysis if its anticompetitive effect is clear. American Needle contended that a brief analysis was appropriate in this case. In response, the defendants contended that the exclusive license arrangement encouraged additional licensee commitment and had numerous procompetitive effects, including improvements in product design, quality, distribution, and coordination of styles with other apparel items that made American Needle obsolete and no longer worth partnering with for the NFL. The NFL basically chalked this up to that it was just strictly business and they wanted the best partner for the NFL’s