Trademark in Sports Business: A Comprehensive Guide
This concept has made sports into a many billion dollar industry in the globe due to media rights, sponsorships and merchandising. An instrumental aspect of this commercialization is the intellectual property feature most especially trademarks that are considered to be valuable possessions for sports teams, leagues and athletes. This blog addresses the issue of trademarks and its relevance to the sports business, pinpoints the important traditions, and presents state laws and international laws on the registration of trademarks and their protection. We’ll also discuss notable companies that have done well in India to have their trademarks registered appropriately.
What is a Trademark in Sports Business?
A trademark is a distinctive sign, emblem or phrase that is enables to identify or discriminate the goods or services provided by one entity from those of another. In a business of a team, the logos, names, slogans and merchandise as well as the images of players are termed as trademarks. These assets in the field of intellectual property assist in the popularity and attractiveness of the brands leading to additional income from licensing, merchandising and sponsorships.
For instance, we can consider the logo of Manchester United Football Club or the Indian Premier league beyond being just a symbol or a title as it is a brand with monetary worth. Such brands ought to be secured through their registration so that they do not get used in an unauthorized and fraudulent way.
Importance of Trademark in Sports Business
The revenues that are obtained from both sports leagues and other franchise businesses rely on the proper protection and defence of the trademarked brands integrated in those businesses. The following are some key reasons why trademarks are crucial in the sports business:
- Brand Identity and Recognition- In the business of sports, the teams, leagues, and even individual players create very strong brands. Legal rights on the names, logotypes, or any other distinguishable signs of these brands are turned into registered Trademarks. For instance, someone buying Real Madrid jersey has the team brand through the attached trademark logo.
- Revenue Generation through Licensing- Normally, sports bodies allow other external organizations to test their brand names in exchange for third party merchandising, ticketing or airing. This creates big source of wealth. For instance National Basketball Association (NBA) uses its team logo on apparels like t-shirts; footwear; and any other product like food products and soft drinks.
- Fight against Counterfeiting- Counterfeiting of merchandise is very common in the sports business. Trademark registration helps the sports franchises and organizations to take action against such counterfeiting. This feature makes sure that only right or genuine products are delivered to the consumers and that the businesses remain intact in terms of reputation.
- Sponsorships and Advertising- Sports teams and events depend on sponsorships as a source of income and sponsors themselves usually wish to be associated with commercially successful brands. A clear and a sound legal trademark makes sponsorship attractive because once a company becomes involved with the team or event then it is difficult for another company to come and take the sponsorship.
International Treaties and Agreement
Over the years, collective efforts to create international conventions has been made in order to harmonize efforts for the protection of the use of a trademark in different countries. Some of the important treaties are:
- Paris Convention, (1883)
The Paris Convention is one of the oldest international treaties for the protection of other people’s motivations and trademark inclusion. It gives members from other countries right to make appeals for such registration in other countries after being registered in their own country.
- Madrid Agreement and Madrid Protocol (1891 and 1989)
International registration of trademarks is made easy under the Madrid system whereby a corporation makes one application in one country to protect its trademark in all the member countries at once from the WIPO. The Madrid protocol makes the process more simplified and quicker seeking trademark protection in more than one country.
- TRIPS Agreement (1995)
The TRIPS agreement on trade related aspects of intellectual property rights is internationally said to be the legally binding agreement under the WTO. For instance, it provides the protection of trademarks and other forms of an industrial property right across the territory of member states of the European Union. TRIPS calls for seven years as the minimum term of trademark protection.
Indian laws on trademarks in the sports industry
Being a signatory to all the international conventions mandates India to recognize and protect trademark under its legal framework. The main statute for trademark in India is the Trademarks Act, 1999.
1. The Trademarks Act 1999-
The law governs the rights of the owners of registered trademarks in India as obtained under the Trade and Merchandise Marks Act, 1958. Here are some of the following features:
- Registration: Under the Act, trademarks (including logos, names and slogans or designs) can be registered subject to distinctiveness and graphical representation.
- Copy protection: The Act permits suit to be taken against infringement of registered trademarks. It is up to the trademark owner to sue and claim damages against an infringer, or seek injunctions on future infringements.
- Renewal: An Indian registered trademark remains valid for 10 years from the date of application and could be continued to renew it infinitely.
2. Personality Rights-
The Act also includes provision regarding the acknowledgement of trademark rights as to certain celebrities for their personality and the protection of celebrities publicity if they are being exploited for commercial gain. For example, people who follow certain tendencies and trends, such as Sachin Tendulkar, Cristiano Ronaldo, Lionel Messi, etc.
3. Domain Name-
Domain names are an important aspect of trademark which cover the ones involved in businesses of online commercial activity to give an ‘Online Identity’ to their commerce. These Domain names work in the same manner as the offline trademarks and are protected by the Internet.
International Trademark Laws for Sports
Besides the contentious conventions described above, countries have negotiated some of their own national laws that will regulate trademark rights in the sporting activities. Here’s an overview of how trademarks are protected in key international markets:
1. United States
Trademark is regulated by the Lanham Act of 1946 in the United States. It offers very much protection against trademarks such as logos belonging to sporting teams, team names and slogans. The United States Patent and Trademark Office is also responsible for registrations of trademarks and the legal system supports the registration. This is why provisions of a strong enforcement against counterfeiters is desirable.
2. European Union
Trademark protection in the countries of the European Union is governed by the European Union Trade Mark and industrial design registration system operated by the European Union Intellectual Property Office (EUIPO). This system affords one stop registration for trademark that offer protection in EU member states.
3. United Kingdom
What emerged after the Brexit event is a new trademark that is newly founded by the United Kingdom known as the United Kingdom Intellectual Property Office or commonly known as the UKIPO. Subsequently, many sports teams and organizations in the UK persist in currently, to enjoy the trademark protection through national registrations.
Challenges faced in Seeking Protection for Marks in Sport
Even though trademarks are important for the sports business, exercising these rights is challenging which include:
1. Cross-Border Enforcement- Since many sporting activities are international in nature trademark infringement is not limited to one country. While international conventions like the Madrid Protocol assist in, to protect rights across several countries yet it can be a multidimensional and costly affair for jurisdictions to undertake.
2. Counterfeiting- In fact, illicit trades are still rampant despite the existing law on forgery and counterfeiting of sports merchandise particularly, where there is relatively low compliance with legal standards of proof. The issue of counterfeiting substandard products is probably best fought off with the cooperation of trademark holders, police forces, and customs services.
3. Ambush marketing- It is a strategy that relates a brand to an event without the right on it and hoods the sponsorship of events in a way that reduces the value of the event trademarks.
Conclusion
Trademarks are a key resource in the sphere of sports business, which provides legal guarantees for them. In particular, they maintain brand image, disposition and protect against misuse or infringement. Since conventional laws have provided a strong footing for trademark registration both internationally and in India, enforcement, and aiding sports organizations to safeguard their assets from infringement of their intellectual property. In a global industry where branding is key, protection of trademarks is not only an issue but a legal necessity for Businesses.
References:
https://www.wipo.int/treaties/en/ip/paris/
https://www.wipo.int/web/sports/branding
https://www.inta.org/fact-sheets/international-trademark-rights/
https://www.upcounsel.com/sport-trademarks