Beyond the field : Intellectual Property in the Sports Industry

ABSTRACT-

First of all, let’s understand the relation between patent law and sports law

Patent law and sports law might not seem related at first, but they can be. Patent law protects new inventions or ideas, like special equipment or technologies used in sports. For example, a new type of running shoe design or a high-tech golf club could be patented.

In sports law, these patents can be important because they give the inventors exclusive rights. This means others can’t copy or use their inventions without permission. It encourages innovation in sports gear and equipment.

So, while you might not think about patents in sports, they play a role in protecting new ideas that make sports safer, more exciting, or just better overall.

INTRODUCTION

Intellectual Property Rights being a global phenomenon is not only recognized in India but in other countries as well. The main aim of IPR is to encourage creativity and innovation and to protect reputation or goodwill that is attached to a brand, by ensuring that the owner of the IP rights gets a fair recognition and reward for his original work or invention through earning his livelihood from it. IP owners can even prevent other people from using or copying their work or invention without their permission until their works come under the scope of public domain. The duration for protection of IP rights are for a limited period of time; for example- in India, Copyright, in certain cases, is protected for a period of 60 years plus lifetime of the author and Patents are protected for the period of 20 years from the date of application of the patent. IP owners can even license, assign or sell their IP rights. This article primarily focuses on the role of Intellectual Property law in the sports sector.

The scope of Intellectual Property law covers wide aspects of sporting events, Sport brands, etc. IPR bestows IP rights in every sector of the sports field. Starting from Copyrights, in which the Broadcasters require to put into lots of money for broadcasting the sporting events so that, the fans all over the world can enjoy the match. The Patents which promotes innovation and technological advancement will ultimately result in inventing sporting devices. The Trademark protects the goodwill or reputation of a sporting brand. And lastly, Designs protects the aesthetic value of sports articles. For example- A sports bag covers a wide range of IP rights such as a Copyright protects the audio-visual creations used by the broadcaster to publicize the bag. Trademark protects the goodwill that is associated with the brand of the bag by differentiating it with any other product of similar nature. Design law protects the aesthetic design of the bag. And Patent would protect the technological advancement used in inventing such a bag.

Intellectual Property Rights (IPR) are recognized worldwide, including in India, to encourage creativity and protect brand reputation. They ensure creators get fair recognition and can earn a livelihood from their work. IP owners can prevent others from using their work without permission until it enters the public domain. In India, Copyright lasts 60 years plus the author’s lifetime, and Patents last 20 years. IP owners can also license, assign, or sell their rights.

In sports, IPR covers events and brands. Copyrights protect broadcasters who bring events to fans. Patents drive innovation in sports devices. Trademarks protect brand reputation, and Designs safeguard the look of sports products. For instance, a sports bag can have Copyright for promotional content, Trademark for brand reputation, Design protection for appearance, and Patent for technology used.

THE IMPORTANCE OF IP FOR THE SPORTS INDUSTRY

  • Growing economic importance of the sports industry
  • The organization of sport competitions has positive effects over the economics sectors (e.g. employment, infrastructures, tourism, etc)
  • The legal framework must ensure an adequate protection of IP rights in order to attract investment in the sports industry
  • A national strategy that comprises the government and the private sector is necessary in order to facilitate the creation of an effective legal framework

ROLE OF COPYRIGHT IN SPORT INDUSTRY

The Copyright Act, 1957 protects various elements of sporting events like logos, slogans, and trademarks. Since registration isn’t mandatory, it’s easy for artwork to be protected under copyright law.

If someone’s artwork is copied without permission, the Act offers civil remedies (like permanent or temporary court orders, financial compensation, and legal cost coverage) under Section 55. Criminal penalties under Section 63 include imprisonment and fines for serious offenses.

ROLE OF TRADEMARK IN SPORT INDUSTRY

Trademarks play a key role in the sports industry by creating brand value through logos, marks, taglines, and slogans. This branding helps sports teams, clubs, players, and merchandise connect with the public and gain popularity.

Under Section 135 of the Trademarks Act, 1999, there are civil and criminal remedies for trademark infringement or passing off. Registration of a trademark isn’t mandatory to enforce rights under this law. Trademark violations are serious offenses, and criminal actions can be taken against offenders.

PERSONALITY RIGHTS IN SPORTS INDUSTRY

Personality rights are crucial for sports branding. Stars like Tiger Woods, Cristiano Ronaldo, and Lionel Messi have become global brands due to their celebrity status, earning money through ads and brand endorsements. This status boosts their image, brand ads, and revenue.

Sports federations, team owners, and equipment producers should register their team names, logos, and slogans under the Indian Trademarks Act 1999. This simplifies protecting their trade names in court. Players should also register their names, photos, and caricatures as trademarks. Using a team’s name or logo without permission is unfair and can harm the team’s reputation and goodwill. Unauthorized use by a third party can lead to unfair competition and damage to the brand’s reputation.

DOMAIN NAME IN SPORTS INDUSTRY

In India, courts treat domain names as part of trademark law, crucial for protecting intellectual property in sports. With sports information and broadcasts online, the internet has boosted brand value but also led to cyber squatting, where others misuse domain names. Websites make advertising and branding easy. Sponsors sell event tickets and branded goods online, enhancing customer experience. To prevent cyber squatting, it’s wise to register domain names with popular endings like .com., .org, etc., safeguarding fans and businesses from trademark abuse and dilution.

LICENSING AND FRANCHISING IN SPORTS INDUSTRY

Licensing and franchising are crucial in sports for making money by selling exclusive merchandise related to teams and clubs, boosting brand reputation. This exclusivity helps create goodwill and increase sales. Profits can also come from licensing rights in online games, restaurants, bars, and media like TV and broadcasting. Not knowing or ignoring others’ intellectual property rights can be profitable for some but harmful for owners who fail to educate or notify infringers. It’s important for sports sponsors to have clear guidelines on their websites to prevent misuse of IP rights and protect their investments in promoting sports events.

AMBUSH MARKETING

Ambush marketing in sports is like sneaking into a party without an invitation. Imagine a big sporting event where certain companies pay to be official sponsors and get special rights, like advertising during the games. Ambushers, however, are like party crashers. They try to get attention by linking their brand to the event without paying for it. For example, say Coca-Cola pays to be the official drink, but Pepsi airs ads saying they’re the official drink too, causing confusion.

To prevent this, event organizers and sponsors use legal tools like trademarks and copyrights to protect their logos and brands. They also set clear rules in contracts with sponsors to control advertising and prevent ambush tactics, like giving away freebies or flying banners over stadiums. These strategies help keep the party (and the sponsorship deals) fair and clear.

HOW IP ASSET SHOULD BE PROTECTED?

  • Effective protection of symbols, emblems and name even names through trademark law
  • Adequate procedures and remedies against infringement
  • Protection against on-line piracy to protect the broadcasting rights
  • Protection of designs
  • Importance of the data mining and big data in sport
  • Protection against ambush marketing

CONCLUSION

Commercial sports involve a lot of legal stuff like trademarks (protecting logos), licensing (giving permission), and copyrights (protecting creative work). In events like the one we talked about, these rights are super important. To protect them, organizers need solid legal contracts that cover all intellectual property associated with the event and players.

Sports make money in many ways. For India, it’s crucial to support sports and culture to boost them to global levels. This helps bring in more revenue and makes our sports scene stronger internationally.

FUTURE OPPORTUNITIES

As the value of sports business continues to increase globally, so do the opportunities for rights holders to commercialize their IP.

Author:-Shilpi Jain AVP( Global Filings) & Vaishali Gupta (Patent Paralegal Trainee)
Aumirah Insights

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