Michigan NIL: Name, Image, and Likeness Rights Explained featured image

Michigan NIL: Name, Image, and Likeness Rights Explained

by John DiGiacomo

Partner

Internet Law

Name, image, and likeness (“NIL”) rights are often combined into the general term “rights of publicity.” NIL rights protect the inherent and unique name, characteristics, form, and shape of an individual person. Individuals have a right to control the use of their name, likeness, and image from being used without their permission. For individuals with even a small amount of celebrity, NIL rights are valuable. With very famous individuals — Hollywood and sports stars — NIL rights can be worth millions.

NIL rights have been very much in the news over the last couple of years as the Associations that control college sports have given college athletes control over their own NIL rights. In the past, the name and likeness of a college quarterback, for example, were allowed to be used for video games, with the fees and royalties for that use going to the college, university, or governing association. Some of those rights are still granted for purposes of television and broadcasting rights. But now, college athletes can collect revenue for their own purposes and under their own control and direction. If you need legal help with your Michigan NIL rights, pick up the phone and contact us here at Revision Legal.

To understand NIL rights, it is useful to consider other types of intellectual property like trademarks and copyrights. A trademark will protect logos, words, phrases, designs, and the like from being used by others without permission. Owners of trademarks can refuse to allow others to use the trademark and can bring lawsuits to enforce that refusal and collect substantial monetary damages for infringement. For famous trademarks, lawsuits can be brought to recover money damages for conduct that damages or tarnishes a trademark.

The same is true for copyright protections. The creator of an original work of authorship/artistry has the right to control the use of the work. Again, lawsuits can be brought — and money damages recovered — for unauthorized use of the original work.

NIL rights are similar. NIL rights protect the uniqueness of an individual rather than a created trademark or an original work of authorship. The same type of legal remedies are available. The individual can bring a lawsuit to prevent unauthorized use of their name, likeness, or image and can obtain substantial monetary damages for infringement/violation of those rights.

Further, just like trademarks and copyrights, NIL rights can be licensed. This is what makes NIL valuable. A company might make sports clothing and equipment, and a star athlete might be asked to endorse said products. That endorsement can be worth millions. A license is a written agreement allowing another person or business to use the name, image, and likeness of a person. The individual granting the license — the grantor — is paid royalty fees (as agreed to in the license agreement) by the person/business receiving permission — the grantee. Like other forms of intellectual property, NIL rights can be passed along to heirs in the event of death. This is particularly true where NIL rights were used as a source of revenue.

NIL rights generally encompass the following:

  • Image and form of a person — including “time-lapse” images and forms
  • His or her voice
  • Signature — in some States, like California
  • Name
  • Other unique characteristics like manner of movement — such as dancing

Contact the Name, Image, and Likeness Rights Attorneys at Revision Legal

For more information, contact the experienced NIL Rights Lawyers at Revision Legal. You can contact us through the form on this page or call (855) 473-8474.

Michigan’s NIL Legal Framework

Michigan’s approach to NIL rights for college athletes is anchored in a combination of NCAA rule changes and state law. The NCAA’s 2021 interim NIL policy — adopted in response to the Supreme Court’s decision in NCAA v. Alston, 141 S. Ct. 2141 (2021) — eliminated restrictions on college athletes profiting from their NIL. Michigan subsequently enacted legislation to provide a regulatory framework for NIL dealings by student-athletes at Michigan institutions. Under Michigan law, student-athletes can enter into NIL agreements without losing their eligibility, provided those agreements comply with applicable university policies and state law restrictions.

Michigan law generally prohibits NIL agreements that involve certain categories of products or services, including tobacco, alcohol, and gambling — a common restriction in state NIL statutes. Student-athletes and their representatives must also ensure that NIL agreements do not constitute impermissible “pay-for-play” arrangements — compensation tied to athletic performance rather than genuine commercial endorsement of a product or service. The distinction matters legally and practically: a legitimate NIL deal compensates the athlete for the commercial value of their name, image, and likeness, not for their on-field performance.

Structuring a Michigan NIL Agreement: Key Legal Terms

A well-structured NIL agreement protects both the athlete and the commercial partner. The following provisions are essential in any Michigan NIL deal:

  • Grant of rights clause — specifies exactly which rights are being licensed: use of the athlete’s name, specific photos or video content, social media handles, voice, signature, or some combination; rights should be enumerated specifically rather than granted broadly
  • Exclusivity — whether the license is exclusive (preventing the athlete from entering similar deals with competing brands) or non-exclusive; exclusive arrangements command higher compensation but restrict the athlete’s other opportunities
  • Term and territory — how long the agreement lasts and in what geographic markets the rights can be exercised; a regional restaurant chain does not need national exclusivity
  • Compensation structure — flat fee, per-post social media rates, royalty on sales attributable to the athlete’s endorsement, or equity; each structure has different tax implications for the athlete
  • Approval rights — the athlete should retain the right to review and approve how their name and likeness are actually used in any advertising or promotional content before publication
  • Morality/behavior clause — allows the commercial partner to terminate the agreement if the athlete engages in conduct that materially damages the brand; athletes should negotiate carefully defined triggering events rather than vague “morality” language

Tax Obligations for Michigan NIL Athletes

NIL compensation is taxable income. Michigan student-athletes who receive NIL compensation — whether in cash, free products, discounts, or any other form of economic benefit with ascertainable value — must report that compensation as self-employment income on their federal and state tax returns. This is a critical point that many college athletes do not fully appreciate when entering their first NIL deals.

As self-employed individuals, NIL earners are responsible for paying both the employee and employer portions of Social Security and Medicare taxes (self-employment tax) in addition to income tax. For 2025, the self-employment tax rate is 15.3% on net self-employment income up to the Social Security wage base, plus 2.9% on amounts above that threshold. Michigan NIL athletes who anticipate significant NIL income should make estimated quarterly tax payments to avoid underpayment penalties. They should also consider structuring their NIL activities through a properly formed business entity — an LLC taxed as an S corporation, for example — which may offer meaningful self-employment tax savings at higher income levels.

Protecting Your NIL Rights from Unauthorized Use

Michigan’s right of publicity statute, MCL § 436.101 et seq., as well as the common law right of publicity, protect individuals from the unauthorized commercial use of their name, image, and likeness. A Michigan athlete — or any Michigan individual with valuable NIL rights — can bring a civil lawsuit against any person or company that uses their NIL for commercial purposes without consent. Available remedies include injunctive relief to stop the unauthorized use, recovery of the defendant’s profits attributable to the unauthorized use, actual damages, and in cases of willful violation, exemplary (punitive) damages.

Unauthorized use of an athlete’s NIL most commonly arises in the following contexts: businesses that use an athlete’s social media photos in their own advertising without permission, sports memorabilia sellers who reproduce an athlete’s image on merchandise without a license, video game developers who use an athlete’s likeness without compensation, and digital platforms that scrape and repurpose athlete content for commercial gain. Each of these scenarios creates a viable legal claim under Michigan law and, in appropriate cases, under federal law as well.

Contact the NIL Rights Attorneys at Revision Legal

Whether you are a Michigan college athlete entering your first NIL deal, a professional athlete looking to maximize the value of your brand through licensing, or a business seeking to partner with Michigan athletes in a legally compliant way, Revision Legal’s NIL attorneys are here to help. We draft and negotiate NIL agreements, advise on tax structuring for NIL income, and prosecute unauthorized use of our clients’ name, image, and likeness rights. Contact us through the form on this page or call (855) 473-8474.

Extra, Extra!
Related Posts

The Risks of Using AI-Generated Content in Your Business

The Risks of Using AI-Generated Content in Your Business

Artificial intelligence has become part of nearly every business operation. Businesses now use AI tools to write marketing copy, generate product images, compose emails, draft social media posts, and produce video and audio content at a scale that was not possible a few years ago. The efficiency gains are real. But so are the legal […]

Read more about The Risks of Using AI-Generated Content in Your Business

How to Respond to a Cease and Desist Letter

How to Respond to a Cease and Desist Letter

Receiving a cease and desist letter can feel alarming. One minute you are running your business as usual, and the next you are staring at a legal demand accusing you of trademark infringement, copyright violation, breach of contract, or some other wrong. The situation can escalate quickly if not handled properly. But receiving a cease […]

Read more about How to Respond to a Cease and Desist Letter

Put Revision Legal on your side