Intellectual property is directly involved with the sports business. Global brands invest millions to sponsor sports events and set up advertising campaigns that are broadcast around the world. According to Google Trends data, between July 5 and 12, searches for the expressions “Olympic Games 2024” and “Olympics” grew 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 counterfeiting of products has already caused losses. Hence, strict rules have been established regarding the use of the rings and mascots, and official sponsors are the only ones authorized to advertise.
Enforcement of legitimate use of intellectual property and compliance are intensified during this period. “Olympic Properties” are elements and conjunctural aspects (names and images) legally protected, such as: the rings, the emblem, the flag, the terms “Olympic” or “Olympics”, the Paris-2024 edition brands, like mascots, torch, and official poster.
The International Olympic Committee exerts extremely strong control over what companies can do regarding “Olympic Properties.” According to French press reports, only until February of this year, 1,500 products were removed from circulation or destroyed for violating the policy on the use of intellectual property.
During the French national holiday week, near the Stade de France stadium where athletes will compete in the Paris Olympics, police officers raided and closed 11 stores selling counterfeit products. They confiscated 63 thousand items, including fake Louis Vuitton and Nike clothes, shoes, and leather goods. Ten people were arrested.
One of the major challenges of managing, maintaining, and adding value to a powerful brand like this, without a doubt, is dealing with counterfeiting. According to a study conducted by IPEC (Intelligence in Research and Strategic Consulting), in 2020, 60 million soccer jerseys were sold in Brazil, of which 22 million were counterfeit. In other words, in Brazil, 37% of soccer jerseys are fake. 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 counterfeiters are essential to managing intangible assets. On the other hand, the financial reality of the average Brazilian consumer needs to be considered. Data from the Amsterdam University demonstrate a significant correlation between income and consumption of counterfeit products in general, further finding that the majority of those who consume counterfeits in Brazil justify the act due to the high prices practiced by the market.
Over time, various innovations have emerged to meet the demands of sports for a fairer competition and better performance conditions for the athletes themselves. When thinking about patents, many immediately refer to the protection of complex technologies mainly related to pharmaceuticals, 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 as an invention.
Innovative technologies used in the Games, such as timing systems, sports equipment like swimming goggles, clothing, and infrastructure are protected by patents; as well as the design of new sports equipment, uniforms, and other innovations are protected by industrial design rights, promoting innovation and ensuring that creators can get return on their investments.
We must highlight ‘ambush marketing’, the Ambush Marketing used by entrepreneurs seeking to associate with the prestige and notoriety of certain sports, social, and cultural events without authorization from the organizers, which can occur through violation of intellectual property rights (trademarks and copyrights) or unfair competition and unjust enrichment.
The prohibition of ambush marketing aims to protect the investments of the official organizers, which are essential for the conduct of events, such as the Olympic Games. It is understood that ambush marketing is a practice that violates the rights of third parties and should be understood as negative behavior and/or conduct. On the other hand, through occasion-based marketing, it is possible to take advantage of events, concerts, and other occasions without any violation or inappropriate association, leveraging the natural consumer behavior and increased engagement associated with these times to increase brand visibility, boost sales, and enhance customer loyalty.
According to public information, in the case of the Olympic Games, revenue from sponsor companies represents the second largest source of income for the event, behind only television broadcasting. For the Paris 2024 Olympic Games, it is estimated that the advertising investments by over 60 event sponsors reached approximately €1.24 billion.
The use of AI will be revolutionary at the Paris Olympics. In the ‘Olympic Agenda for AI’ document, cutting-edge technology is being used in athlete detection, improving sports performance, enhancing fan experience, and managing major competitions. The security of the Games will also utilize AI. A law passed last year by the French parliament authorized, on an exceptional basis, ‘algorithmic treatments’ for analyzing surveillance cameras during the event.
*Gabriel Di Blasi and Paulo Parente are founding partners of Di Blasi, Parente & Associates, a law firm specializing in Intellectual Property: www.diblasiparente.com.br
