A licensing initiative the University is said to be participating in violates federal and state antitrust laws, according to a cease-and-desist letter filed about a month ago by a Washington, D.C. attorney.
Steve Bradbury, an attorney with Dechert LLP, instructed the Collegiate Licensing Company and 27 universities to discontinue implementation of the Sideline 1 Initiative.
The initiative is an effort by the company to restrict merchandise licensing by individual universities to Nike, Adidas or Under Armour, in addition to one or two other suppliers, according to the letter.
“The Sideline 1 Initiative is an anti-competitive restraint of trade that presents serious issues under federal and state antitrust laws,” the letter states.
Mike McFarland, University spokesman, wrote in an email that the rights granted to manufacturers ensure that UNC’s products are properly distributed.
“The University makes its own decisions about which licensing partners will best protect, market, manage and grow the UNC brand,” he said.
Bradbury said in an interview that the letter was intended to prevent further implementation of the initiative and to change the minds of officials from other universities considering involvement.
The letter states that Bradbury represents “various stakeholders who share a common interest in preserving competition and choice.” Bradbury declined to comment on whether the group was planning legal action.
The issue arose after suppliers and retailers became concerned when they began to lose their licenses with the universities, he said.
