Protecting your intellectual property (IP) rights against ambush marketing in the Kingdom of Saudi Arabia
Sports & Events Management Focus
Edward ImrieAssociate,Intellectual Property
The Kingdom of Saudi Arabia's (“KSA”) strategic focus on sports investment is a pivotal component of Vision 2030, the nation's ambitious plan to diversify its economy and reduce reliance on oil revenues. Through significant investments in global sports entities, the development of world-class infrastructure, and the hosting of major international events, the KSA aims to establish itself as a leading hub for sports and entertainment. This emphasis on sports is not only intended to drive economic growth but also to encourage a healthier lifestyle for its 32 million plus population. As is the case in other parts of the world, this has inevitably led to an increase in focus surrounding advertising and marketing practices within sporting events in the KSA – specifically, ambush marketing. This article covers how IP rights can be affected by ambush marketing and suggests best practices to protect against being exploited and thereby avoid losing potential revenue generated from being official sponsors of such sporting events.
Ambush marketing in sports, in its most basic form, refers to the practice where an advertiser or a brand owner attempts to associate itself or its brand with a sporting event without paying for official sponsorship rights. This can dilute the value and benefits attributed from being the official sponsors of a sporting event, harm the interests of sponsors who have paid for these exclusive rights, and at the same time allow for such advertisers or brand owners to leverage off the goodwill of the sporting event. In the context of IP rights, certain ambush marketing practices can infringe the IP rights in the following ways:
it can often involve the unauthorized use of trademarks, logos, names, and other IP associated with a sporting event, thereby misleading consumers into believing that the ambushing brand is an official sponsor when it is not.
It can also involve using copyrighted material such as logos, slogans, or other creative works associated with an event, without permission.
It can lead to consumer confusion and potential damage to the reputation of the official sponsors.
It is a form of unfair competition as it can exploit and leverage off the investments made by official sponsors without paying any fees/costs towards the sporting event.
Such practices can detract from the interests of legitimate sponsors who have secured rights to use and promote their trademarks during the event. Consequently, the KSA upholds the protection of trademarks and sponsorship agreements in sporting events, ensuring that all parties adhere to relevant regulations and treaties.
Currently, there is no specific legislation addressing ambush marketing within the KSA. However, there are several legal frameworks that protect IP rights owners against ambush marketing.
The Trademarks Regulation, promulgated by Royal Decree No. M/21 dated 28/5/1423 AH (corresponding to 02/08/2002 CE), is applicable, as it governs trademarks, their licensing, and usage within the KSA to prevent infringements on the rights of trademark owners. Copyright Law, regulated by Royal Decree No. M/41 dated 2/7/1424 AH and amended on 536 dated on 19/10/1439 AH (corresponding to 03/07/2018), provides a framework for enforcing IP rights at sporting events. For instance, unauthorized streaming of a sporting event that requires paid attendance may result in the automatic removal of such content by digital media platforms. While merely covering the event may not trigger legal issues, any unauthorized promotion or marketing within or around the event, directly or indirectly, may lead to the enforcement of copyright laws.
Furthermore, the KSA is a signatory to several international treaties concerning IP and has established the Saudi Authority for Intellectual Property (“SAIP”) to enforce IP protections for trademark owners. This enforcement is critical in preventing the unauthorized use of trademarks by non-licensed entities. The KSA is also a member of the Gulf Cooperation Council (GCC), and adopted the GCC Trademark Law, ratified by Royal Decree No. M/51 dated 26/7/1435 AH (corresponding to 05/25/2014 CE). It compliments and sits alongside the Trademarks Regulation and offers protection to trademark owners from GCC member states under its provisions. Trademark owners who wish to participate in an upcoming event within the KSA may be granted temporary trademark protection for a specific period and under certain conditions, as provided by this law.
The Ministry of Sports (“MoS”) and the Saudi Esports Academy (“SEA”) serve as the regulatory authorities for sporting events within the KSA. Their respective regulations mandate that IP rights must be acknowledged and protected in connection with these events. Both regulators place significant emphasis on the protection of IP rights in all events and agreements governed by their regulations, ensuring that such rights are upheld and enforced in accordance with the law.
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Firstly, IP rights owners should ensure comprehensive protection of their IP rights within the KSA in order to be able to enforce and protect their IP assets against third party infringers using ambush marketing techniques. IP rights owners must register all relevant trademarks and logos associated with the sporting event or any other IP rights through the SAIP portal. As has been the case with previous major sporting events, such as the FIFA World Cup in Qatar, IP rights owners can lobby and work with local authorities in advance to establish event-specific legislation that protect against ambush marketing during major events. This will provide a legal basis for taking action against unauthorized use.
Additionally, it is crucial that any contractual agreements involving the licensing or sponsorship of IP rights be in written form and include specific provisions to safeguard such IP rights. These provisions are essential to protect both the IP rights owner and the licensee or promoter from potential IP violations. To further mitigate the risk of breaches of IP laws and regulations through ambush marketing, the following example measures should also be considered:
Ensuring that prominent trademark and copyright notices are placed on all official merchandise and advertising materials.
Using clear and consistent branding to reinforce the association between the sporting event and its official sponsors.
Adopting a zero-tolerance approach by remaining vigilant and taking swift, decisive action against any infringers.
Considering establishing “clean zones” around the stadiums and other venues where only official sponsors can advertise.
Considering the incorporation of non-legal strategies, such as a publicity campaign to identify and promote official sponsors to create a stronger association, where appropriate.
By adhering to the steps outlined in the preceding section, the IP rights owner should also report any infringements or violations of their rights to the competent authority, the SAIP. They will undertake the necessary actions to halt the unauthorized use by the promoter or infringer, provided the IP rights owner can demonstrate that they did not grant any license or authorization for the use of their IP rights to the party in question.
It is imperative that IP rights, particularly in the context of sporting events, are diligently protected and managed in accordance with the legal framework of the KSA. Ambush marketing can present significant risks to legitimate sponsors and IP rights owners, and while there is currently no specific legislation addressing this issue, existing trademark and copyright laws provide avenues for protection and enforcement. By taking proactive measures, such as registering IP rights with the SAIP, including robust protective clauses in contracts, and remaining vigilant against infringements, IP rights owners can effectively safeguard their rights. Adherence to the relevant laws and regulations, as well as prompt reporting of any violations to SAIP, is essential to prevent unauthorized use and avoid the imposition of penalties. Proper management of IP rights will ensure compliance and mitigate the risks associated with ambush marketing in the KSA.
For further information,please contact Edward Imrie.
Published in October 2024
