The sports industry in today's modern age has evolved into a highly commercialized and competitive business, offering sports clubs the opportunity to generate immense profits year after year. As a result, it is essential for clubs to invest not only in the club's success in its respective league but also in their brand development which can attract more fans and generate increased revenue. One of the key ways to achieve this, in addition to the implementation of marketing strategies, is through intellectual property protection.
This Article provides a quick overview on a few key areas where sports clubs may safeguard their intellectual property to maximise their brand value and commercial potential. Note that this is a non-exhaustive list.
What is Intellectual Property?
Prior to identifying the key areas in which intellectual property may be safeguarded, it is important to understand what intellectual property is.
The World Intellectual Property Organisation (WIPO) has defined intellectual property as "creations of the mind, such as inventions; literary and artistic works; designs; and symbols, names and images used in commerce." 1 Intellectual property is protected by law through various methods, such as patents, copyright and trademarks. By registering their intellectual property through one of these methods, owners establish legal rights, enabling them to earn recognition or financial benefit from what they have invented or created.2
It is important to highlight here, that the protection of intellectual property varies from country to country. Different jurisdictions have different laws and provisions governing how Intellectual property is protected, and the scope and duration of these protections may also differ.
Trademark:
A trademark is "a sign capable of distinguishing the goods or services of one enterprise from those of other enterprises".3 For a sports club, a trademark can consist of but not limited to the club's logo, designs, slogans, taglines etc. Chelsea FC for example, most recently trademarked a new emblem to celebrate their 120th anniversary, symbolizing the club's identity as "London's true club". In addition, the club sought to trademark the words "Chels" and "The Chels", which are closely associated with the two-time UEFA Champions League- winning team.
Trademarks are valuable commercial assets to sports clubs. By securing trademarks, clubs can generate significant revenue through sponsorship, merchandise and licensing agreements. For instance, if a company wants to use a club's logo on its products, the club can charge a licensing fee or earn a percentage of the profits from those products.
Copyright:
Copyright is defined by WIPO as "the rights that creators have over their literacy and artistic works. Works covered by copyright range from books, music, paintings, sculpture, and films, to computer programs, databases, advertisements, maps, and technical drawings.)4
In relation to sports clubs, copyright may apply to output such as promotional videos, photographs, designs, match highlights, etc. These copyrighted materials are vital to a club's brand identity and commercial strategy and their protection. If unauthorized parties reproduce or distribute such materials the club has the legal right to take action against them. By copyrighting the above, sports clubs can maintain their brand's integrity and ensure they reap the financial benefits of their output.
Patents:
A Patent is defined as an exclusive right granted for an invention. Patents benefit inventors by providing them with legal protection of their inventions. However, patents also benefit the society by providing public access to technical information about these inventions, and thus accelerating innovation. For instance, McLaren Formula One used patented VR technology through its partnership with HTC, to deliver immersive fan experiences. Similarly, clubs like FC Barcelona and Manchester City use Intel's patented True VR systems for advanced viewing experiences.
By leveraging patented innovations, clubs safeguard exclusivity, increase brand value, and create new revenue streams through licensing and partnerships, demonstrating the growing importance of intellectual property in sports.
Significance for the safeguarding of a club's intellectual property:
Proper protection of intellectual property rights enables a club to effectively pursue legal remedies in cases of infringements. 5 In contrast, without the registration of its intellectual property, enforcing these rights becomes more difficult and costly as it becomes easier to establish ownership.6 Unauthorised exploitation of a club's intellectual property can have severe consequences to a club, including the loss of potential revenue. For example, if a third party uses the club's logo and sells merchandise at a lower price, consumers may opt for these cheaper alternatives, diverting sales away from the club's official licensed products. This underscores the importance of registering intellectual property to help a club control over its assets and prevent unauthorized use by third parties.
Conclusion:
In conclusion, the intricate interplay of sports and intellectual property highlights the critical role that intellectual property plays in the commercial and competitive landscape of modern sports and as the sports industry continues to evolve and more business opportunities arise, effective Intellectual Property management will remain central to the industry's growth and innovation.
Footnotes
1 'What Is Intellectual Property (IP)?' (WIPO) accessed 29 November 2024
2 Ibid.
3 World Intellectual Property Organization, 'Trademarks' (WIPO) www.wipo.int/en/web/trademarks accessed 29 November 2024.
4 World Intellectual Property Organization, 'Copyright' (WIPO) www.wipo.int/copyright/en/ accessed 29 November 2024
5 William Fry, 'Protect Your Professional Sports Club – Protect Your IP' (William Fry, 15 August 2023) www.williamfry.com/knowledge/protect-your-professional-sports-club-protect-your-ip/ accessed 29 November 2024
6 ibid
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
