LSU, along with 27 Football Bowl Subdivision schools, was sent a cease and desist letter June 9, claiming universities are violating anti-trust laws.
The warning was sent to the University because of its affiliation with the most powerful name in collegiate merchandise, IMG College, and its licensing division, The Collegiate Licensing Company.
IMG, a global sports and media business formally known as International Management Group, acquired Host Communications and the CLC in 2007.
It now represents more than 150 universities, nine collegiate conferences, 15 bowl games and seven other athletic institutions in the United States, including the National Collegiate Athletic Association and NCAA Football.
Any business wishing to produce a product with the LSU trademark or logo must haggle with the CLC to legally become a licensee.
The University allows more than 2,000 businesses to sell LSU merchandise, ranging from T-shirts to ringtones.
According to Lee Ann Lockridge, University law professor, difficulties arose when the CLC allegedly tried to reduce the number of licensees, allowing companies to raise merchandise prices.
A Washington, D.C. law firm representing “various stakeholders who share a common interest in preserving competition and choice” sent the letter demanding the IMG, CLC and universities stop “concerted efforts” to limit the number of merchandise manufacturers.
Lockridge said if only one business sells a product, it could be considered violating fair trade laws.
“If they are getting all of their schools to agree behind closed doors to restrain trade, then this is violation of anti-trust laws.
But it seems like this case is reasonably restraining trade,” Lockridge said. “Trademarks are there by nature so that the owner can control who is buying goods. But at the same time the owner doesn’t necessarily need to restrain who is selling their