Intellectual property is directly involved with the sports business. Global brands invest millions to sponsor sporting events and create advertising campaigns that are broadcast worldwide. According to Google Trends data, between July 5 and 12, searches for the expressions "Olympic Games 2024" and "Olympics" increased by 26.6% and 12%, respectively.
The Paris 2024 Olympics and Paralympics, with an expected cost of €9 billion (R$51.8 billion), are showcases for major global brands, but product piracy is already causing losses. Therefore, strict rules were established regarding the use of rings and mascots, and official sponsors are the only ones authorized to advertise.
Inspection of the legitimate use of intellectual property and compliance are intensified during this period. "Olympic Properties" are legally protected elements and contextual aspects (names and images), such as: the rings, the emblem, the flag, the terms "Olympic" or "Olympics," the trademarks of the Paris-2024 edition, such as mascots, the torch, and the official poster.
The International Olympic Committee exerts extremely strong control over what companies can do regarding the "Olympic Properties." According to French press data, only until February of this year, 1,500 products were withdrawn from circulation or destroyed for violating policies related to intellectual property use.
During the French National Week, near the Stade de France stadium, where athletes will compete in the Paris Olympics, police raided and closed 11 stores selling counterfeit products. They confiscated 63,000 items, including clothing, shoes, and leather goods counterfeit of the Louis Vuitton and Nike brands. Ten people were arrested.
One of the biggest challenges in managing, maintaining, and adding value to a powerful brand like this is undoubtedly dealing with counterfeiting. According to a study conducted by IPEC (Intelligence in Research and Strategic Consulting) in 2020, 60 million football team shirts were sold in Brazil, of which 22 million were counterfeit. In other words, in Brazil, 37% of football shirts are counterfeit. In financial terms, the loss was R$ 9 billion in 2021, according to a survey by the National Forum Against Piracy and Illegality (FNCP).
On one hand, overt actions to inhibit counterfeiting are essential for managing intangible assets. On the other hand, the financial reality of the average Brazilian consumer needs to be considered. Data collected by Amsterdam University shows a significant correlation between income and consumption of counterfeit products in general, and it has also been found that most of those who consume counterfeits in Brazil justify the act due to the high prices charged by the market.
Over time, various innovations have emerged to meet the demands of sports for fairer competition and better performance conditions for the athletes themselves. When considering patents, many immediately associate them with the protection of complex technologies mainly related to the pharmaceutical, telecommunications, biotechnology, industrial processes, robotics, among others. What few know is that even a seemingly simple ball can involve such innovative technology that it is eligible for patent protection.
Innovative technologies used in the Games, such as timing systems, sports equipment such as swimming goggles, clothing and infrastructure, are protected by patents; just as the designs of new sports equipment, uniforms and other innovations are protected by industrial design registrations, promoting innovation and ensuring that creators can get a return on their investments.
We must highlight 'ambush marketing', the Ambush Marketing used by businesspeople who seek to associate themselves with the prestige and notoriety of some sporting, social and cultural events, without authorization from the organizers, which may occur from the violation of intellectual property rights (brands and copyright) or unfair competition and illicit enrichment.
The prohibition of ambush marketing aims to protect the investments of official organizers, who are essential for the organization of events such as the Olympic Games. Ambush marketing is understood as a practice that violates the rights of third parties and should be regarded as negative behavior and/or conduct. On the other hand, through occasion-based marketing, it is possible to leverage events, shows, and other occasions without any violation or inappropriate association, capitalizing on the consumer's natural behavior and the increased engagement associated with these times to boost brand visibility, drive sales, and enhance customer loyalty.
According to public information, in the case of the Olympic Games, revenue from sponsoring companies represents the second largest source of income for the event, behind only television broadcasts. For the Paris 2024 Olympic Games, it is estimated that the amounts invested in advertising by over 60 event sponsors have reached approximately €1.24 billion.
The use of AI will be revolutionary at the Paris Olympics. In the document 'Olympic Agenda for AI,' cutting-edge technology is being used in athlete detection, sports performance enhancement, enriching the fan experience, and managing major competitions. The security of the Games will also utilize AI. A law passed last year by the French parliament temporarily authorized "algorithmic treatments" for analyzing surveillance cameras during the event.
*Gabriel Di Blasi and Paulo Parente are founding partners of Di Blasi, Parente & Associados, a law firm specializing in Intellectual Property Law: www.diblasiparente.com.br