Excluding the Internet from the rule would "expose online publishers to potentially limitless liability," the ruling said.
"Pippen does not contend the defendants took any action beyond initially posting the stories to their websites, and we conclude that Illinois would deem the passive maintenance of a website not a republication," according to the ruling.
Pippen's attorney, Arthur Gold, told ABCNews.com he disagreed with the decision made by the Seventh Circuit, saying "they didn't focus on what the key issues [in the case] were."
"We will be discussing with our client what options are available," Gold said with regard to next steps.
A spokesman for the Chicago Bulls delcined to comment to ABC News.
An attorney for NBCUniversal declined to comment.