adminAleck Ncube, Intellectually Property
THE concept of sport has transcended the context of mere leisure and entertainment to become a significant revenue stream and a major contributor to economies all over the world. Sports practitioners all over the world have been able to generate enormous revenues from the exploitation of aspects of Intellectual Property rights via merchandising and so on. However, in Zimbabwe the recognition of the potential resident in a vibrant sports industry has been non-existent or too little.
Popular games such as football, cricket, rugby and tennis have evolved into international events with a huge following in the process creating enormous marketing potential for the organisers. The organisers of popular games such as the Fifa World Cup, manage the events in such a manner that they are able to extract maximum value from others who want to exploit the marketing potential that the event offers.
The Intellectual Property created in sports are used in the form of merchandising, advertisements as well as creating brand equity and reputation in the process earning hefty profits. There are various sports teams in the world which are perfect examples of Intellectual Property brand capitalisation. Football teams like Liverpool, Real Madrid, Barcelona, Chelsea and Manchester United, have been developed and marketed as huge brands worth billions of dollars. The world famous Forbes Magazine conducts a survey of the most valuable sports teams and on that list, Real Madrid, Manchester United and Barcelona, are always in the top 10.
Sports business is big business and IP is a big part of that business. Therefore, it is important that professional sports teams in Zimbabwe, especially the clubs in the Zimbabwean Premier League; Highlanders, Dynamos, Caps United, for example look at the immense potential in the development and exploitation of intellectual property rights generated by the clubs.
Patents
Patents are intellectual property rights that are used to protect inventions and inventive processes. For these inventions and inventive processes to be protected via patents they must be new, innovative and capable of industrial applications. A patent gives the owner the exclusive right to produce, commercially exploit and prevent others from so doing, in other words it bestows the owner with a monopoly. In sports, patents have been varyingly awarded ranging from sports shoes (football boots, running converse, etc.). For instance, American sports wear and equipment giants Nike have been granted over 540 patents by the United States Patent and Trademark Office (USPTO).
Also in recent times there has also been the introduction of technology to assist officials (referees, umpires, etc.) in making crucial judgment calls; for example in the English Premier League hawk-eye goal-line technology was introduced to determine in certain circumstances if the entire circumference of a ball has crossed the goal line and thus can be awarded as a goal by the human referee. Also inventions with respect to sporting moves, methods and techniques have recently received patent protection; for example the method of placing a golf ball, methods for fitness training, the method for training pitchers in baseball, and so on. A professional sports team, player or league gains immensely significant benefits from exclusive control or rights of usage and permission over a playing technique that gives an edge in competition; sizeable amounts of revenues can be generated via the grant of licences over agreed period of time, which could be open to renewal.
Merchandising and licensing
Merchandising has become one of the most lucrative revenue generating business for sports teams. Today every sports team comes up with its own merchandise, which are very innovative and attractive. The most common and popular variety of merchandising ranges from caps, T-shirts, mugs, shoes, toys etc. Sports clubs can engage in merchandising through licensing creative works. Generally a merchandise licensing agreement must include a grant clause, royalty clause, intellectual property clause, quality control, territory, term and sale after termination. Zimbabwean sports organisations must embrace the phenomenon of using merchandising and licensing in order for them to maximise and capitalise on their sporting activities.
The business of sports teams earning profits by exploiting their Intellectual Property makes it extremely important for them to adequately protect their Intellectual Property assets. The protection is via the different forms of Intellectual Property rights. A professional sport team, sports association and/or event organiser must establish that it has a certain level of goodwill or reputation, which it has built up over a period of time that makes consumers (fans, TV broadcasters, etc.) continuously return because of the quality of its brand.
Sports events marks
Sports events marks are essentially any sign logo, mark, name, etc that is capable of distinguishing one sports competition (event) and its organiser from another. The most popular example of a sports event mark would the interconnected rings of the Olympic Games. The rings of the Olympic Games are not only the most important Sports Event Mark due to the obvious popularity of the games butthey are also important with respect to the legal protection that can be available for sports event marks.
The Olympic Games being an international event is protected not only at the international level but also at the various national levels. At the international level it is protected by the Nairobi Agreement. At the national level the rings of the Olympic Games are protected by special local trademark legislation which the International Olympic Committee makes a prerequisite for any country that intends to host the Olympic Games.
Personality rights
Personality rights refer to the rights to control the commercial and economic exploitation of one’s personality and its peculiar attributes, like an individual’s name, image, likeness, unique personality traits and/or any other aspect relating to his/her personal identity. Personality rights can be leveraged upon by sports association/sports events organisers to boost their competitive edge.
It can help in no small measure in the brand development and building of sports teams and sports competition. For instance, in the United States Major League Soccer has exploited and continues to leverage on the personality rights of renowned football celebrities in the building of the corporate brand of the league and the brands of the individual clubs examples of this include, Andrea Pirlo Italian Serie A winner with Juventus FC, Champions’ League winner with AC Milan and World Cup winner with the Italian national football team, Didier Drogba Chelsea FC legend now plying their trade for MLS Clubs in the USA.
These players have contributed in no small measure to the rising popularity of the MLS across Europe and Africa, while boosting the popularity of the sport in the USA and strengthening the brands of their respective clubs.
Zimbabwean professional football clubs can adopt this brand development model. Celebrity status gives birth to a plethora of different forms and shades of image creation and brand endorsements which has as the consequence of leading to revenue generation via fame exploitation.
Commercialisation of sports is so rampant that the competition among sports teams or associations is not only on the field of play, but also in the business for making huge profits. Sports clubs must venture into exploitation of their Intellectual Property through various routes including the lucrative merchandising route.
Sidumisile Mabena