Intellectual Property Rights in Sports: Trademarks, Branding and Licensing

Abstract

In human social life, sports have always had a considerable impact. It now constitutes a significant portion of our lives and a tremendous source of pleasure. However, today’s sports have developed past just entertainment and have come to have substantial economic and commercial significance, particularly in the United States, India, the United Kingdom, and across the entirety of Europe. Through merchandising, promotion, marketing, franchising, and brand building, professional sports clubs and teams in these countries have developed into more commercially viable and influential entities.

The most popular sports, including cricket, football, hockey, baseball, tennis, basket ball, auto racing, and others, have evolved into major international competitions. The international sporting event organisers have been successful in generating significant financial gains, applauding the large part of their aggressive marketing campaigns that take advantage of the market sector of the given sports.

Therefore, making use of and making money off of intellectual property rights has only become wise for professional sports organizations and businesses. These intellectual property rights are typically monetized through licensing, marketing, broadcast rights, exclusive and non-exclusive licenses, and so forth.

Introduction

Intellectual property rights are recognized not only in India but also in other countries because they are a global phenomenon. The main objective of IPR is to encourage creativity and innovation and to safeguard the reputation or goodwill associated with a brand by ensuring that the owner of the IP rights receives appropriate credit and compensation for his original work or invention and is able to support himself through it. Owners of intellectual property may even prohibit the use or duplication of their creations until they become part of the public domain.

The duration of an IP right’s protection is limited; for example, in India, a patent is only valid for 20 years following the date of application, whereas a copyright may be protected for 60 years plus the life of the inventor. Even better, owners of IP can transfer, license, or sell their rights. This essay’s main concern is how intellectual property legislation affects the sports sector.

A vast range of aspects of athletic events, sports brands, etc. are covered by intellectual property law. Every sphere of the sports industry is granted IP rights by IPR. Starting with copyrights, which cost a lot of money for broadcasters to purchase in order to allow sports fans around the world to watch the game. Sports equipment will eventually be created thanks to the patents that encourage innovation and technological development.

A sporting brand’s reputation or goodwill is safeguarded by its trademark. Last but not least, Designs defend the aesthetic worth of sporting goods. A sports backpack, for instance, protects a variety of intellectual property rights, including the audio-visual works that the broadcaster used to promote the bag are protected by copyright. By setting the bag apart from other products of a similar sort, the trademark safeguards the goodwill connected to its brand. The bag’s appealing design is protected under design law. Furthermore, a patent would safeguard the scientific innovation that went into creating such a bag.

Since sports have become more commercialized, the sports business has expanded quickly, with some sports, like cricket, becoming more popular in India than other sports. Cricket, once referred to as a Gentleman’s game, has evolved into a commercial game that requires a significant financial commitment and generates revenues.

For instance, in the case of the IPL (Indian Premier League), this necessitates a substantial financial outlay and ultimately leads to significant scams, such as the problem of gambling. Manchester United, Liverpool, Chelsea, Real Madrid, and Barcelona are just a few of the teams that have been successful in building sizable markets for football through the use of their names.

The commercial side of the sporting arena is protected, commercialized, and exploited through the use of various intellectual property (IP) rights, including trademarks, copyrights, and personality rights. The legal context for discussing how IP rules apply to the sports industry is provided by the following.

Trademarks in Sports

Branding is unquestionably crucial in both the sale of goods and the provision of services. It aids in building consumer trust and gaining a competitive edge in the market. Even in situations pertaining to the sports sector, this is valid. For a brand name to be established, athletes, clubs, associations, and event organizers invest a lot of time and money. Some of the branding techniques employed by prominent sports brands include advertisements, sponsorship agreements, and product merchandising. Social media, which was developed together with the internet, is a powerful instrument for boosting a brand’s popularity.

A brand needs to be protected, as there are more and more ways to make it stronger. Trademarks become important in this situation. A trademark is a unique term, name, or symbol that identifies a corporation. It aids the business in maintaining competitiveness and gaining consumer loyalty. Nike’s “swoosh” logo and slogan, “JUST DO IT,” are two examples of how the company has successfully built a meaningful rapport with its customers.

There is a necessity for a brand’s protection along with the expansion of brand-strengthening strategies. Trademarks can be used in this situation. A trademark is a unique term, name, or symbol used to identify a certain company. It aids the business’s ability to retain customers and compete. Nike’s “swoosh” logo and slogan “JUST DO IT,” for instance, have contributed to the development of a meaningful bond between the company and its consumers.

Licensing

By licensing patents, trademarks, and copyrights while maintaining full ownership, sports organizations can considerably increase their economic potential. The same suggests that the original owner of the patent, trademark, or copyright still has a claim to it, but that he or she did permit another party to utilize the rights in exchange for a fee.

The agreement between a manufacturer and the trademark owner is described in a trademark license. The licensee will produce and sell the items bearing the trademarked idea (such as a name or logo), while the licensor controls the product’s quality to preserve the reputation of the trademark.

A technological license is a similar concept that is more closely related to notions of equipment. Businesses that license their innovations can gain higher revenue through increased production and distribution, while businesses that obtain the license can produce and sell the most modern equipment and keep up with the competition.

Sponsorship is an additional promotional strategy available to companies looking to capitalise on major sporting events like the FIFA World Cup, IPL, etc. Sponsors frequently get the chance to have their brands associated with the event, get media exposure, and get other benefits, depending on the event and their level of sponsorship.

Case Laws

In the case, Sourav Ganguly v. Tata Tea Ltd., the well-known former cricketer and captain of Team India discovered that the renowned tea company that hired him as a manager was profiting by allowing customers to congratulate him on his accomplishments after he returned to India following a successful session at Lords. The deal implied a collaboration with advertising, which was not the case. He was able to stop this activity and come to a peaceful conclusion. According to the court, he is entitled to intellectual property rights based on his notoriety and appeal.

According to the ruling in Espn Star Sports v. Global Broadcast News Ltd. and Ors., copyright will only exist in works, as stated in Sections 13 and 14 of the Copyright Act. The term “broadcast” is not included in the definition of “work.” As a result, broadcasters’ sole independent copyright rights in live events broadcast to the general public will be those described in Section 37 of the Copyright Act.

Therefore, in accordance with the definitions of broadcast under Section 2(dd) and of communication to the public under Section 2(ff) of the Act, the Broadcasting Organisation is responsible for causing the Broadcast to be communicated to the public under their logo by any means of wireless diffusion or by wire. This is so that the Broadcasting organization can own the Broadcast Reproduction Right, which is separate from Copyright.

Because that clause only applies when an exclusive licensee of copyright starts legal action or a case for copyright infringement, Section 61 does not apply in a proceeding for infringement of a Broadcasting Reproduction Right.

The plaintiffs in the matter of Skechers USA Inc & Ors v. Pure Play Sports provide a variety of footwear options, one of which is the ‘SKECHERS GOwalk footwear’ line, which was introduced and launched in 2011. The plaintiffs asserted that their product embodies an appealing blend of quality, value, comfort, and style that appeals to a wide spectrum of buyers. The plaintiffs alleged that the defendant had introduced and was promoting shoes that were a perfect reproduction and doppelganger of the shoes that the plaintiffs had created, produced, and promoted under the GOwalk 3 series. Finally, an ad interim injunction in favour of the plaintiffs was granted by the Delhi High Court.

Copyright and Broadcasting

Sports organizations rely on broadcasters to spread the word about their events, engage fans around the world, and push through their limits to attract sponsors. Because of copyright and related rights, particularly those pertaining to broadcasting organizations, sports, television, and other media are interwoven. Media companies spend vast sums of money to secure the exclusive right to broadcast the finest athletic events live, despite the fact that the majority of sporting events are not covered by copyright rules. To experience the thrill of witnessing a sporting event, millions of people go to these events.

The bulk of sports groups currently rely heavily on the sale of broadcasting and media rights, the price of which has risen dramatically in recent years. By helping to cover the cost of sponsoring significant athletic events and stadium improvements, they also support the growth of sports at the grassroots level.

For instance, about USD 2,868 million was made from broadcasting the 2016 Olympic Games in Rio. 90% of the money that the IOC brings in through sponsorship deals and the sale of television rights is put back into the expansion of sports around the world.

The broadcasters are able to invest in the technology and logistics necessary to broadcast events to millions of viewers around the world thanks to the royalties they receive from selling their exclusive material to other media outlets.

The rights of broadcasters praise and reward the creative efforts of the industry and recognize their contribution to the dissemination of knowledge and culture. They also protect against the significant costs associated with broadcasting athletic events.

The rapidly evolving nature of digital media is proving advantageous to broadcasters as they interact with and engage consumers by offering sports coverage across a number of formats and platforms. The landscape of sports media is rapidly evolving as a result of the introduction of new non-traditional media companies, including streaming services like IN Sports and FirstRow.

Because of this, signal piracy has sharply increased, and the landscape of who creates and distributes material is shifting. Sports fans now have more options for what to watch thanks to the launch of these new services, which is raising competition for the right to broadcast sporting events.

Conclusion

Sport is an important industry with a strong economy. In this business, athletes are celebrities who trademark their names to avoid unauthorised use. Both the players and the governing body’s trademarks were protected. As a result, there is a big chance that their name, logo, or phrase will be appropriated for profit. Intellectual property rights come into play in each of these situations to safeguard the individual’s rights through trademarking. A sportsperson develops his or her name and reputation, which calls for intellectual property protection to avoid exploitation.

Therefore, the preservation of intellectual property rights has a significant impact on the rights of athletes or organizations. Everyone who registers their trademarks is entitled to it. Both athletes and the governing body are entitled to register and protect a trademark in the sports industry, whether it takes the form of a domain name, personality rights, or merchandise.