June 2 (Bloomberg) -- The U.S. Supreme Court rejected an appeal from Major League Baseball and its players association, leaving intact a ruling that lets a fantasy-sports company use players' names and statistics without paying licensing fees.

The justices made no comment in turning away the appeal, which sought to revive claims that CBC Distribution and Marketing Inc. violated the players' rights under Missouri law. A federal appeals court said the company had a First Amendment right that trumped the players' interests.

The rebuff is a setback for professional sports leagues and players unions looking to control the burgeoning fantasy market. MLB had support in the case from other pro sports leagues, including the National Football League, National Basketball Association and National Hockey League.

``Fantasy sports game providers have virtually all operated under licenses with athletes' representatives for years,'' the unsuccessful appeal argued. ``This case has disrupted those reliance interests and thrown the industry into disarray.''

Fantasy sport leagues now generate about $500 million a year worldwide in fees, advertising and other revenue, according to Jeff Thomas, president of the 150-member Fantasy Sports Trade Association, which backed CBC in the case.

``Hopefully, this closes the chapter of litigation and will usher in a new era of cooperation between the league, the players association and the fantasy sports industry,'' said Glenn C. Colton, a lawyer who represents the trade group.

Weighing Options

MLB Players Association spokesman Greg Bouris said in an e- mail that the union was ``considering our options at this time.'' MLB Advanced Media spokesman Matthew Gould declined to comment.

Fantasy sports league participants simulate owning professional franchises, complete with scouting, drafting and trading of players. Teams compete based on players' real-life performance in numerous statistical categories.

A survey released last year by the Fantasy Sports Trade Association said 19.4 million people in the U.S. and Canada engage in fantasy sports.

St. Louis-based CBC offers a variety of fantasy baseball games, with entry fees as high as $1,000, and awards prizes as high as $25,000, according to its Web site. The company, which operates under the trade name CDM Fantasy Sports, had annual sales of more than $3.4 million in 2004 and 2005, according to court papers.

Buying the Rights

Until 2004, CBC operated under a licensing agreement with the players association. The following year, the league's MLB Advanced Media unit bought the rights to use names, photographs and statistics, agreeing to pay the players $50 million over five years.

The league then sold annual licensing rights for about $2 million each to companies including CBS Corp.'s SportsLine.com and Walt Disney Co.'s ESPN. CBC says it was offered only the right to market the league's fantasy games and not a license to run its own games.

CBC then sued for the right to use players' names and statistics. The St. Louis-based 8th U.S. Circuit Court of Appeals ultimately agreed with CBC on a 2-1 vote, rejecting the league's contention that Missouri law gives players the right to bar others from using their identities for commercial purposes.

``It would be strange law that a person would not have a First Amendment right to use information that is available to everyone,'' the majority said.

The dissenting judge said he would enforce the company's 2002 agreement not to challenge the players' publicity rights.

The case is Major League Baseball Advanced Media v. CBC Distribution and Marketing, 07-1099.

To contact the reporter on this story: Greg Stohr in Washington at gstohr@bloomberg.net.

Last Updated: June 2, 2008 14:05 EDT