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December 23rd, 2022
Key Sports Law Cases & Developments 2022
Sports Group Partner Christopher R. Chase speaks with LawInSport on the most important legal cases and developments from the world of sports law in 2022. Christopher contributes his thoughts on the implosion of the cryptocurrency exchange FTX:
“The implosion of cryptocurrency exchange FTX and its subsequent bankruptcy filing will likely change the structure and contractual obligations of both athlete endorsements and corporate sponsorships going forward. For example, several class action lawsuits have been filed against athletes and celebrities for their role in promoting FTX (as well as other crypto and NFT brands), arguing that such promotion was an unfair and deceptive practice under federal and state law – placing a spotlight on endorser liability. To avoid potential claims, athlete and celebrity endorsers should ensure that proper substantiation exists for any advertising claims that the endorser makes on behalf of a brand and that the endorser has a good faith belief in such advertising claims. While an indemnity from the advertiser for claims about its product is generally standard and protects an endorser from liability to some extent, it may not be worth much when the brand has little ability to back it up – so the athlete or celebrity endorser would be wise to consider the actual evidence for the advertising claims before agreeing to endorse the product or service.
Regarding sponsorships, the FTX situation is yet another cautionary tale for rights holders – particularly when entering into agreements with entities in nascent industries. Seeking more payments up-front (and in dollars!), limiting the length of the contractual term, expanding the ability to terminate, and seeking regular audits or reviews of financial statements from sponsors (particularly ones that do not have publicly available financial statements) are all considerations rights holders may want to take going forward. Now that FTX has filed for bankruptcy, rights holders have to file motions to have the court reject the sponsorship agreement or otherwise lift the automatic stay so that the rightsholder can terminate the agreement – both procedural and substantive situations in which rights holders do not want to be.”
See the full article here. (Behind paywall).
Other Quoted
Copyright Guide or Policy Change? Project Divides IP Attys
Law360 quoted Jacqueline Charlesworth on the controversy surrounding the American Law Institute’s copyright restatement project. Ms. Charlesworth criticized the initiative as advancing a “revisionist theory” that could weaken copyright protections. She was among nearly two dozen advisers who resigned from the project, signaling deep concerns about its direction.
The article highlights a broader debate within the IP community: whether the restatement simply clarifies existing law or attempts to reshape policy in favor of users. Ms. Charlesworth’s perspective emphasizes the stakes for rights holders as courts and practitioners consider how much influence the restatement may carry. Read the Law360 article about the copyright restatement project here.
November 19 2025
Reports of ‘Click-to-Cancel’s Death May Be Premature
A Competition Policy International article quoted Holly A. Melton on the continuing impact of the Federal Trade Commission’s “click-to-cancel” rule , despite a recent Eighth Circuit Court of Appeals decision. Melton was quoted for her analysis of the FTC’s $2.5 billion settlement with Amazon over Prime subscription practices. In a blog post, Melton pointed to a clause in the agreement that anticipates future rulemaking around negative option features. “That’s not boilerplate,” she wrote. “It reads like a deliberate placeholder—future-proofing the settlement for the reappearance of Click to Cancel.” Melton interprets this as a strategic move by the FTC to potentially revive the rule through a new proceeding.
Melton’s outlook reflects a broader shift in the FTC’s enforcement priorities toward consumer-facing issues like subscription transparency and cancellation ease. She referenced Commissioner Mark Meador’s remarks about focusing on “everyday economic concerns affecting ordinary households” and noted that, even without immediate rulemaking, the agency’s litigation stance signals that subscription practices will remain a top-tier priority for the Bureau of Consumer Protection. Her guidance to advertisers and subscription services: “prioritize transparency, obtain affirmative consent, and make cancellation as effortless as sign-up. The ‘Click to Cancel’ may be down, but it’s not out,” Melton concluded, underscoring the FTC’s intent to keep its options open. Read the Competition Policy International post here.
November 11 2025
States Turn to Outside Firms to Generate Big Privacy Settlements
Holly A. Melton is quoted in the Bloomberg Law article on the growing practice of state attorneys general hiring outside counsel for litigation in data privacy and online safety cases. The article noted this shift boosts companies’ risk profiles, with smaller states taking on more complex cases. “‘One, don’t ignore the states that don’t necessarily have privacy laws because you’re not safe’ said Holly Melton, partner at Frankfurt Kurnit Klein & Selz. ‘And two, the sort of posture has already kind of ratcheted up when they come in with outside counsel who’s sort of running the show.’”
Bloomberg Law stated this strategy is getting mixed results. Some states point out that they could not bring certain cases without the staffing, resources and expertise of the private firms. But critics question outside counsels’ driving state priorities—selecting enforcement for big payouts or settlements, more akin to civil plaintiff litigation instead of traditional AG litigation that prioritizes companies changing their behavior. View Article.
October 9 2025
