Exploiting Sponsorship Rights
Exploiting Sponsorship Rights
Sponsorship takes different forms - sponsorship (or naming rights) of a venue; one or more brands sponsoring an event (e.g. FA Cup); official suppliers / branded content / product placement / merchandising, access to social media and celebrity endorsement. All of these need careful selection so that the brand value of the event is not compromised by inappropriate or excessive association.
Sponsorship is big business. While it is most frequently encountered in the context of sport, it also extends to music events, arts and charitable and educational activities, and increasingly by the sponsoring or funding of television programmes or films.
Organisers of events will need to be aware of contract law, intellectual property rights and advertising law to protect their commercial interests. For the organiser of a successful event “ambush marketing” is a threat. Ambush marketing is an attempt by a third party to associate itself directly or indirectly with an event to benefit from the goodwill or prestige of the event, without having to pay for that privilege as an official sponsor would do. The effect is that consumers associate events with non-sponsors, rather than with the official sponsors. The organiser loses control of its brand.
Contract law allows organisers to proactively control the activities of those they chose to work with. Organisers should agree in writing with those involved with an event as to how their participation is publicised or promoted. Intellectual property and advertising law reactively control the activities of third parties event organisers have no direct relationship with. If the organiser can register intellectual property rights relating to the event then this will protect the event’s branding and commercial value. The advertising codes and regulations provide protection against misleading and unfair advertising. For example, the Advertising Standards Agency offers a complaints procedure which is separate to any legal claim the event organiser may otherwise have against the “ambush marketer”.
In order for event organisers to maximise the commercial value of an event a lot of planning needs to be undertaken. What rights are being sponsored; by whom; for how long; what commercial message will the partnership bring? The organiser will have document this so it can retain control over its partners. Intellectual property rights will need identification and registration which is another important investment. The organiser will have to be vigilant so any infringement by ambush marketers can be quickly attended to. Failure to do so will compromise the relationship with partners who have been granted exclusivity.
