Not even the proximity of the Masters Tournament could keep golf legend Jack Nicklaus from taking at least part of his mind off Augusta National Golf Club. In this case, however, it was for a happy event, as he achieved an important legal victory.
Nicklaus was the subject of a lawsuit filed by the current management of the Nicklaus Company LLC, led by banker Howard Milstein. The lawsuit was dismissed recently by New York State Supreme Court Civil Division Justice Joel M. Cohen, which has significant implications for the 18-time major champion’s ability to operate businesses in the future.
The central issue in Nicklaus’ favor is that he is free to use his name, image and likeness in the design of golf courses, something he was temporarily deprived of.
It may seem nonsensical that the legendary player could not use such inherently personal matters, but it is not when you consider the way the business operation first developed and the lawsuit later.
Let’s see:
THE WOODLANDS, TEXAS – MAY 4: Jack Nicklaus of the United States acknowledges the crowd on the 10th hole as he participates in the Folds of Honor Greats of Golf held in conjunction with the…
THE WOODLANDS, TEXAS – MAY 4: Jack Nicklaus of the United States acknowledges the crowd on the 10th hole as he participates in the Folds of Honor Greats of Golf held in conjunction with the first round of the Insperity Invitational at The Woodlands Golf Club on May 4, 2024 in The Woodlands, Texas. (Photo by Aaron M. Sprecher/Getty Images)
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The origins of Nicklaus Company LLC date back more than 50 years, when Nicklaus began his career as a golf course designer. Since then, it has grown into a conglomerate of companies with diverse profiles, from selling golf apparel and equipment to alcoholic and non-alcoholic beverages.
In 2007, Milstein entered the picture and bought shares in the company. Over the next 10 years, Nicklaus continued to sell shares in the company to the banker until, by 2017, his relationship with the company was virtually nonexistent.
However, he was still bound by a contractual non-compete clause that prevented Nicklaus from designing golf courses with his name on them. That obligation expired in 2022, so the legendary player began offering his design services through a new company called 1-JN.
This was the catalyst for the lawsuit. Milstein and Nicklaus Company LLC felt their rights were being violated because, in their opinion, the name and image were still part of the brand’s intellectual property.
Judge Cohen didn’t find ground for that assumption, ruling that with all of Jack Nicklaus’ obligations to his former company over, he is free to engage in any commercial activity, including designing golf courses, using his name, image and likeness with full rights.
The court also decided that the Nicklaus Company LLC could continue to operate under its original trademark and even use the Golden Bear logo so closely associated with the 73-time PGA Tour winner’s persona.
However, the court’s decision itself established that Stearns Weaver Miller Weissler Alhadeff & Sitterson, P.A., the law firm representing Nicklaus, issued a press release shortly after the decision was announced:
“It is unfortunate that Mr. Milstein brought the case in the first place but Mr. Nicklaus is very pleased with the outcome,” the statement reads. “Jack Nicklaus, his children and their children own a name made famous by the good works of Jack and Barbara. It is theirs.”
The matter is far from over, however, as Nicklaus is also suing Milstein for defamation. According to the lawsuit, the banker allegedly claimed that Nicklaus tried to land a position at LIV Golf, which the former player denies.
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