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(EMAILWIRE.COM, July 26, 2013 ) San Francisco, CA -- NCAA announced that it will not longer allow Electronic Arts, Inc. to use its logo starting next year. This move ends the lucrative and exclusive business deal between the gaming industry and the college football association as the NCAA fights a high-profile lawsuit that says the governing body owes billions of dollars to former players for allowing EA to use their likenesses in the games for free.
The NCAA wonÂ’t seek a new contract with EA Sports which manufactures the popular game, but EA, a California based company made it clear that it wouldnÂ’t stop them from producing a college football based video game that depicts college powerhouses such as Alabama, Ohio State, Stanford, and Redwood City.
EA Sports began making the NCAA Football game in 1998 and it has since generated over $1.3 billion in sales in the United States alone. Todd Mitchell, senior analyst with New York-based Brean Capital LLC, said losing NCAA isnÂ’t likely to hurt EA, since they are still the only video game company that creates college football game in the first place, and NCAA Football only account for about five percent of EA SportsÂ’ revenue in the first place.
The NCAA has said that it is confident in its legal position regarding the issue of their trademarks in their video games, as the NCAA has never licensed the use of past or current student athletes names images or likenesses to be used by EA. However, the NCAA did say its members are allowed to seek arrangements with video game manufacturers if they wish.
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