Sports & Trademarks: The opportunities and legal aspects of a symbiotic relationship

Who in the sports business should consider trademark protection?

In 2018, then 19-year-old Kylian Mbappé propelled the French national football team into the quarterfinals of the FIFA World Cup. Within just six days, 137 trademark applications containing the word element "MBAPPÉ" were filed with the Chinese Trademark Office. It is likely that not all applicants had the right to register the name as part of their trademark.

Although not every athlete rises to global fame so quickly, it is advisable for athletes to consider whether trademark protection is necessary for them. Sports clubs, venues and event organisers should also seek advice on protecting their trademarks. A club's logo, an athlete's equipment or the silhouette of a stadium are all valuable intangible assets. A trademark not only safeguards against imitation but also enables licensing to third parties.

Particular attention should be paid to protecting against free riders seeking to benefit from the reputation of a well-known trademark. In such cases, legal measures like cease-and-desist letters or injunctions provide effective tools.

Sponsorship: trademark activation through sports

Sponsorship is a key tool for positioning trademarks in the sports environment. This calls for targeted trademark registrations and well-crafted sponsorship agreements that clearly define the rights and obligations of both parties, including trademark usage, advertising services, contract duration and financial compensation from sponsors.

To ensure long-term partnerships, clear agreements must be established, as vague contract terms can lead to conflicts. By involving legal experts, the interests of both parties can be safeguarded, and potential disputes can be prevented in advance or resolved at an early stage.

Ambush marketing: what is not allowed

Ambush marketing refers to the – sometimes unintentional – attempt by companies to capitalise on the attention of major sporting events without being an official sponsor. This can range from placing logos near stadiums to clever advertising campaigns that suggest a connection to the event.

From a legal perspective, ambush marketing is often classified as unfair competition, especially when it infringes on the exclusivity rights of official sponsors. Event organisers and rights holders can rely on unfair competition law provisions or specific contractual clauses to protect their rights.

Legal advice as key to successful trademark exploitation

The synergy between sports and trademarks offers significant economic potential but also presents legal challenges. Sound legal advice is essential for drafting watertight contracts, enforcing trademark rights and effectively countering risks such as ambush marketing. This ensures sustainable and successful partnerships for all parties involved.

authors: Gudrun Irsa-Klingspiegl, Bernhard Schmidt