This blog is written by Shreyas Ranjit, a Fourth-year law student of University Of Mumbai Law Academy

Introduction

Intellectual Property Rights (IPR) have turned into a trend that plays a crucial role in safeguarding innovation and creativity in different fields like sports where the value of brands has soared along with the growth of the industry itself into a multi-billion-dollar arena over time. The main goal of IPR remains to safeguard ideas and inventions so that those behind them such, as creators or sports personalities can receive due credit and fair compensation for their hard work. Furthermore, intellectual property rights (IPR) empower owners to manage how their intellectual property is utilized for purposes by stopping unauthorized usage.

The sports sector encompasses an array of intellectual property rights that safeguard various elements such, as team insignias and catchphrases to broadcasting privileges and innovative technologies. The length of these safeguards is typically restricted; for instance; patents are valid, for 20 years and copyrights are safeguarded for 60 years plus the duration of the authors life span thereafter. Once these entitlements lapse they become part of the domain and can be utilized by anyone without limitation.

This blog explores the aspects of Intellectual Property Law, in the sports industry. Discussing how it influences the sectors development and addressing both challenges and opportunities that arise from protecting intellectual property

Commercialism in Sports and Its Effect on Intellectual Property Rights

It is evident that the sports industry has become a profitable field due to the peak commercialization of sports activities and events like the Olympics, IPL, FIFA World Cup, and NBA. It is interesting to note how sports went from mere pastime to a billion-dollar industry - all this owing to the worlds of sports and the world of intellectual property coming together. Central to this change is the transformation of the capability of sports bodies to utilize IPR for the safeguarding and marketing of their assets, the brands, the products, and the broadcasting companies.

Popular Sports Brands and IPR

Global football franchises, such as Manchester United, Barcelona and Liverpool have effectively engaged the process of commercial exploitation of their IP assets and leveraged on brand equity to amass multitudes of supporters. It is only of recent that these teams have registered logos nakupastro let proprietary elements, trademark colors and supported items so as to maintain brand equity from imitative items.

Apart from team IPs, there are also personal IPs collectively owned by individual athletes like Cristiano Ronaldo, LeBron James and Vira Kohli who have trademarked their names and images for individual use earning monetary inflows from advertisement and sundry sales. For example, Ronaldo's style name CR7 is registered as a trademark so that when a person goes into license business, this name can be used for profit-making activities without being vouched by outsiders for copyright infringement.

The Scope of Intellectual Property in Sports

The scope of IPR in sports extends beyond the obvious elements like team names and logos. IPR covers a wide array of assets, including technological innovation, broadcasting rights, and even design rights for sports equipment.

The content built around sports events, like logos, music, slogans, and promotional materials, comes under the ambit of copyright law. It goes down to sports broadcasting, given that many people across the globe tune in to view sports broadcasts; these are usually covered under copyright against unauthorized rebroadcasting, piracy, or reuse of footage from the matches. Section 37 of the Copyright Act, 1957 provides exclusive rights to the broadcaster over their coverage of live events for up to a period of 25 years.

A fundamental example of this is the broadcasting rights of IPL matches, because copyright law grants exclusive rights to media companies like Star Sports and Sony over the telecasting of matches; therefore, rebroadcasting or illegal streaming of matches can give rise to civil remedies in the forms of injunctions, damages, and penalties.

Trademark in Sports

Trademarks are important for the identity of sports teams and events. Teams use trademarks to protect logos, team names, and slogans, all important aspects in creating brand identity and preventing counterfeit merchandise from being sold in the marketplace. Trademarks relate to merchandise as well, since sports clubs reap substantial benefits from the sale of branded merchandise.

Sports teams are completely protected under the Trademark Act of 1999 in India. A recent example is the case of the Indian Super League, where the Delhi High Court passed an order restraining a company from manufacturing counterfeit merchandise to promote ISL. The court opined that this step was taken to protect the integrity of the mark and to avoid consumer confusion.

Another major area where the application of trademarks can be seen in sport involves the protection accorded to well-known marks. For example, Olympic rings have wider protection under anti-dilution laws.

The Developing Role of Patents in Sports

Patents are becoming increasingly important within the sports industry, most particularly because technology innovation still reshapes the way athletes do their training and compete. In point, patents give exclusive rights to inventors where they are able to benefit from their innovation. In sport, patents can be used to protect new equipment, training devices, and methods for improving athletic performance.

Patents have been granted to novel exercise equipment, such as golf training aids and baseball pitching devices, for instance, because they provided an advantage in the performance of these activities. In India, the patent protection comes under The Patents Act of 1970, which provides exclusive rights to the inventor for a period of 20 years.

Other examples include the numerous patent grants awarded in sports, from biomechanical analysis tools, which allow a coach and athletic trainer to analyse an athlete's movements to optimize a training regimen. Such inventions, once patented, may yield not only a competitive advantage but also licensing revenues via licensing arrangements.

Personality Rights and the Global Appeal of Athletes

With the emergence of global sports celebrities, the concept of personality rights in sports has come to the fore. For their sporting prowess alone, athletes such as Tiger Woods, Usain Bolt, and Serena Williams have become synonymous with brand names. Personality rights cover anything regarding the name, likeness, and image of an athlete so no unauthorized party may use the same for commercial benefit.

Personality rights in India come under the Trademark Act of 1999, wherein an athlete can then register his name and/or likeness as a trademark. This provides legal protection if any athlete feels that their image has been used in advertisements, merchandise, or promotional activities without permission. Even Sachin Tendulkar is said to have his name registered to keep it safe from being used without authorization.

A well-known case involving David Beckham highlighted the significance of personality rights in sports. Beckham’s name was used without his permission in an advertisement, leading to a lawsuit and subsequent compensation for the unauthorized use. This case underscored the importance of personality rights in protecting the commercial interests of athletes

Domain Names and Digital Era in Sports

Digital media have introduced new challenges to IPR in sports and the most unwelcome guest has been cybersquatting. Traditionally, a domain name represents the digital addresses of sports organizations and athletes. For these reasons, a domain name is a valuable asset in the digital economy. When domain names similar to the name of famous teams or individual athletes are registered without authorization, this is called cybersquatting. Several legal disputes have resulted because of this activity.

In a landmark judgment, the Delhi High Court gave a significant judgment in favour of a sports organization against a domain name cybersquatted. The court clarified that domain names, once registered as trademarks, become protected under the Trademark Act and allow an organization to prevent third parties from using an online presence in a brand and constitute cybersquatting. Several sporting bodies register second or multiple domain names under different Generic top-level domains (gTLDs) such as .com and .org-so as to ensure footprints in the digital space are controlled. This is done so as not to cause confusion by fans, and official sites of teams are not abused for profit by unauthorized parties.

Licensing and Franchising in Sports

Licensing and franchising are an important way in which revenue is generated within the sport industry. Through a licensing agreement, a sport team or organisation may permit a third party to make use of their trademarks, logos and names on merchandise to create income through the sale of this merchandise while retaining full control over the intellectual property. For example, official merchandise for internationally renowned football teams such as Manchester United or Barcelona sells worldwide, and licensing agreements ensure that these products are official and the merchandise protect the team's IP from counterfeiters

Besides merchandise, broadcasting rights are also widely given to media houses for the purpose of rebroadcasting any sporting event without infringing the intellectual rights of the sports franchise. It is exclusivity of the license that enables a team or league to generate very strong revenue without losing any powers regarding how its brand is represented. In this regard, Star Sports has acquired the exclusive rights to air IPL cricket matches, and any illegal streaming or rebroadcast of the same attracts litigation charges .

Licensing agreements also concern online gaming, restaurant franchises, and media rights; the latter has taken on increased importance as digital streaming platforms have proliferated. For example, OTT platforms depend on licensing agreements with sports organizations to distribute live events; for their part, those generate revenue for both parties.

Ambush Marketing and Its Challenges

Ambush marketing would be any company trying to attach itself to the particular major sporting event as an official sponsor if it really is not and is unfair to the legitimate investors. Among the most famous cases is the one National Hockey League (NHL) vs. Pepsi-Cola Canada Ltd. in 1990. In this case, the company Pepsi created an ad that gave an illusion if they were official drink sponsors after Coca-Cola was selected as the rightful sponsor.

Anti-ambush marketing clauses are inclusion by sports organizations in various sponsorship and broadcasting contracts as a counter-measure to ambush marketing. These clauses try to protect the intellectual property of an event and avoid unauthorized associations. In the Olympics, for instance, strict regulations concerning the use of Olympic symbols also forbid non-sponsors to create an impression of any association with an Olympic even.

The Future of Intellectual Property in Sports

With the fast-growing industry of sports, combined with state-of-the-art technologies in the field like artificial intelligence, virtual reality, and blockchain, new dimensions open up for the application of intellectual property in sports. For example, AI-driven analytics platforms helping teams make data-driven decisions can be patented, while VR-based fan experiences will fall under the ambit of copyright and design laws.

With increased globalization of the sports industry, the need for stronger international frameworks on the protection of intellectual property will only be expected to rise further. The Madrid Protocol allows sports teams to register their trademarks internationally, hence their protection in a lot of jurisdictions. Meanwhile, advances in mechanisms for IPR enforcement, especially in the digital domain, are an absolute necessity in the fight against piracy and counterfeiting.

Conclusion

The role of Intellectual Property Rights (IPR) in sports has become increasingly important as the industry continues to expand commercially. From trademarks protecting team logos to patents fostering technological innovation, IPR ensures that the commercial interests of athletes, teams, and event organizers are safeguarded. As digital platforms and global markets grow, so too will the challenges associated with protecting intellectual property in sports.

To navigate these challenges, strong legal frameworks, international cooperation, and continued innovation in IP protection mechanisms are necessary. For sports organizations, securing intellectual property rights through licensing, trademark registration, and patent protection will be essential to maximizing their commercial potential and protecting their brand integrity in an increasingly competitive market.

References

Ø https://lexdellmeier.com/en/blog/sports-and-intellectual-property

Ø https://www.wipo.int/web/ipday/2019/ip_sports

Ø https://www.khuranaandkhurana.com/2024/02/06/safeguarding-success-vital-role-of-ipr-in-the-sports-law/

Ø https://blog.ipleaders.in/role-intellectual-property-rights-law-sports-sector/

Ø https://www.ipandlegalfilings.com/navigating-the-legal-field-an-overview-of-sports-law-in-india/