Ambush Marketing

POLL

• What is the “Official” Beer of the NFL®?– Budweiser®– Bud Light®– Coors®– Coors Light®– Miller Light®– Miller High Life®

• Which Beer do you associate most with the NFL®?

Ambush Marketing

• Ambush Marketing is an outgrowth of official sponsorship of sporting events.

• Ambush Marketing can be defined as when one brand pays to become the official sponsor of an event (i.e., the Olympics, the NFL, the World Cup) and another competing brand connects itself with the event, without paying sponsorship fees.

• Successful Ambush Marketing reduces the value placed on official sponsorships.

Types of Ambush Marketing

• Predatory ambushing – intentional false claims of sponsorship. Can include unauthorized use of IP.

• Coattail ambushing – brand association with an event through a connection that does not involve sponsorship.

• Ambush by distraction – creating a promotional presence at or near an event to take advantage of the attention directed toward the event.

Ambush Marketing Examples

Ambush Marketing Examples

Ambush Marketing Examples

Ambush Marketing Examples

Ambush Marketing Examples

Ambush Marketing Examples

Ambush Marketing Examples

Advice to Combat Ambush Marketing

• Register trademarks and other IP rights associated with the event and be proactive in enforcing IP rights.

• Impose restrictions on the media. For example, only allow broadcasters to film from locations where ambush marketing is not visible.

• Events should purchase all billboard and advertising space in the vicinity of the event and re-sell it to official sponsors.

Advice to Combat Ambush Marketing, cont.

• Event organizers should ensure that the event location is free of any non-official advertising. This can include air space.

• Athletes should be contractually restricted from displaying and promoting their own sponsors at the event.

• Sponsors should also invest in media advertising that is available, and not rely primarily on their position as an official sponsor.

Legal Options to Enforce Exclusive Marketing

• Trademark Laws• Unfair Competition/Passing-Off Laws• Copyright Laws• Design Protection Laws• Specific Olympic Symbol Protection Laws• Special Legislation (event based)• Contract Law (e.g., ticket back language,

contracts with athletes)• Local Ordinance (e.g., Clean Zone Ordinances –

prohibit the sale or distribution of products for commercial purposes within a designated area)

Example Ticket Back Language

• Sporting event tickets can include language prohibiting the use of the ticket for:– “any form of commercial or trade purposes,

including, but not limited to, advertising, promotions, contests or sweepstakes…”

– “Ticket Holder may not engage in any form of activity which may result in an unauthorized commercial association with _____ (i.e., NFL, FIFA, etc)

2010 FIFA World Cup Ticket Back• Ticket Holders may not engage in any form of activity which may result in an

unauthorised commercial association with FIFA, the [World Cup] or parts of it to the detriment of FIFA or its commercial affiliates, whether by way of an unauthorised use of logos or otherwise (“Ambush Marketing”) . . . Ticket Holders are strictly prohibited from using, wearing, possessing or holding promotional or commercial objects or materials, or offering to sell, selling or possessing with intent to sell drinks, food, souvenirs, clothes, or other promotional and/or commercial items . . . Ticket Holders are strictly prohibited from providing any type of commercial service or undertaking any commercial promotions in the Stadium, unless expressly authorised by FIFA . . . Ticket Holders are strictly prohibited from handing out pamphlets or information relating to, or in any way promoting or drawing attention to, any business, cause, charity or concern, whether commercial or not, in the Stadium, unless expressly authorised by FIFA . . . Tickets may not be sold, or otherwise included for commercial purposes, as part of a travel package (for example, combining Tickets with flights and/or a hotel room night) or as part of a hospitality package (for example, combining Tickets with pre or post Match catering services in proximity to the Stadia), without the prior written approval of FIFA.

London 2012 Olympics Example

• Olympic Symbol Act of 1995– Protects Olympic symbols, mottos and words– Established proceedings to enforce act

• Gave London Olympic Association (LOCOG) the exclusive right to grant its sponsors and licensees authorization to create an association between sponsors goods or services and the 2012 London Olympics

• Gave LOCOG the right to prevent people from creating such an association without its authorization.

London 2012 Example cont.

• The Olympic Symbol Act of 1995 defined that any combination of two or more of the following expressions would be infringing:– Group 1: games, two thousand and twelve, 2012

and twenty twelve– Group 2: gold, silver, bronze, London, medals,

sponsor and summer• Journalistic and honest commercial practices

are listed as a defense.

London 2012 Example cont.• The Olympic Symbol Act of 1995 gave LOCOG

the authority to seek injunction for:– Erasure/removal/obliteration of offending

representation on infringing goods; or– destruction of the infringing goods; or– delivery up of the infringing goods

• Criminal sanctions: fines of up to 20,000 pounds plus discretion to order offender to pay expenses of the ODA and police authorities.

• But, LOCOG can only sue to protect the Olympic brand. There is no statutory cause of action for other brand owners.

South Africa Legal Framework• The Trade Practices Act of 1976 prohibits any

unauthorized acts that suggest association with a sponsored event

• Merchandise Action 1941 – The Minster of Trade and Industry is empowered to designate major sporting events as “protected events” where it is an offence to use a trademark to gain special promotional benefit from the Event.

• The Advertising Standards Authority has a Sponsorship Code with provisions aimed at fair treatment of sponsors which prevents third parties from creating impression of association with a sponsored event.

Clean Zones – Coming Soon to Indy

• Clean Zones are designated areas around event facilities and hotels where only authorized vendors and sponsors are allowed to market.

• Clean Zones are generally time and location restricted city ordinances that restrict marketing activities.

2011 Dallas Super Bowl Clean Zone

• Ordinance was in force between Friday, January 21, 2011 to Monday, February 7, 2011 (the SB was played on February 6)

• Ordinance originated in 2007 to comply with the NFL’s requirement to limit Ambush Marketing

• The Clean Zone included a two-mile radius around Cowboy Stadium and certain areas in Dallas and Fort Worth.

• Inside the Clean Zone(s), outdoor advertising was prohibited unless approved by the NFL

Dallas 2011 cont.

• The Clean Zone temporarily suspended issuance of certain permits including:– Special Event Permits– Pole Banner Permits– Film Permits– Super Graphics and Building Wraps– Street Vending– Tent or Inflatable Permits

2012 Indianapolis Super Bowl

• Current Clean Zone ordinance will extend one-mile around Lucas Oil (all of downtown)

• The Clean Zone prohibits temporary advertising, signage, or erection of structures

• The Clean Zone also regulates all transient merchant, vendor, or otherwise licensed activity

• They are considering temporarily relocating the U.S. Post office facility from across the street