Legal News

Steer clear of ambushing the World Cup, UK businesses warned
Thu 27th May 10 - 9:52

With World Cup fever gaining momentum, businesses need to watch out to avoid falling foul of trade mark laws.

Fifa, the World Cup organisers, have a stringent licensing programme to protect the brand and its licensees who invest large sums of money in sponsorship and other affiliation packages. Use of its trade marks is strictly prohibited by unlicensed third parties.

The revenue accrued by licensees associated with this highly publicised global sporting event is massive, with the 2002 licensees grossing about $1.5 billion from product sales. According to Fifa’s website, research has indicated that customers are more than 50 per cent more likely to buy a product that features sports event symbols.

With the hype building for the start of the tournament some businesses may be tempted to work the event into their marketing strategies to attract some of the football feel-good factor to their brand.

Fiona McBride, the head of trade marks at Withers & Rogers LLP, the trade mark attorneys, said: “Businesses are often drawn to the idea of using upcoming sporting events as a marketing platform, but when it comes to the World Cup, they should steer clear.

“The use of Fifa’s World Cup branding is strictly prohibited, and businesses can enter dangerous waters if they attempt to refer to it in their marketing or communications materials.

“Businesses who illicitly use the World Cup trade mark to facilitate their marketing activity may be sued for trade mark infringement and be liable for any damages. Injunctions may be put in place to block that business from using the trade mark in the future.”

Despite vigilant policing by key brand owners, ambush marketing is also a problem for Fifa and others. Ambush marketing was first recognised during the 1984 Los Angeles Olympic Games, when Kodak sponsored ABC’s television broadcasts despite Fujifilm being the official sponsors. This has since become a recognised marketing strategy, where a third party attempts to piggyback on a leading sporting event for commercial gain.

One of the most well-known examples of ambush marketing was by Nike during the 1996 Olympic Games. Nike bought up billboard space around the venues, constructed a Nike Village next door to the athletes’ village and handed out flags bearing Nike’s logo, “ambushing” Reebok, the the Games’ official sponsor.

McBride added: “When it comes to ambush marketing, there is no legislation in the UK prohibiting it, therefore event organisers must rely upon the intellectual property laws to enforce their rights against ambush marketers.”