[Business Today] Sports & IP Rights

By KASS International

Sport is big business. From the gleaming stadiums of the Premier League to the sold-out arenas of the NBA, from Formula 1 circuits to the Olympic Games, professional sport has evolved into one of the most commercially powerful industries on the planet. Global sports market revenues are projected to exceed USD 600 billion by 2025, driven by broadcasting rights, sponsorship deals, merchandise sales, and the explosive growth of digital and streaming platforms. Yet behind every jersey sold, every logo displayed, and every broadcast transmitted lies a complex web of intellectual property rights that makes the entire commercial edifice possible.

Key Takeaways

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The IP foundations of modern sport

Intellectual property in sport operates across multiple layers simultaneously. At the most visible level, there are trademarks: the logos, names, and distinctive insignia that identify clubs, leagues, federations, and athletes. The Nike swoosh, the Manchester United crest, the Olympic rings, the Ferrari prancing horse are among the most recognised and valuable trademarks in the world, and their protection is pursued with extraordinary vigour by the organisations that own them.

Beneath the trademarks lies a further layer of rights. Broadcasting organisations hold copyright in the audiovisual content they produce. Governing bodies assert rights over the formats and regulations of their competitions. Clubs and event organisers control access to their venues and the commercial opportunities those venues represent. Athletes increasingly assert personality rights and image rights over the commercial use of their name, likeness, and personal brand. Each of these rights interacts with the others, creating a landscape that rewards those who understand it and confounds those who do not.

Trademarks: the commercial engine of sport

For sports organisations, trademark protection is the foundation upon which commercial value is built. A club’s crest, its name, its colours, and the distinctive way in which those elements are combined are all capable of trademark registration, and in many cases they should be registered across multiple classes to cover the full range of commercial activities in which a modern sports organisation engages, from apparel and equipment to food and beverages, digital games, and financial services.

The importance of registration cannot be overstated. Without registered trademark protection, a sports organisation has limited recourse against third parties who produce and sell counterfeit merchandise, register confusingly similar domain names, or seek to trade on the goodwill associated with a famous club or athlete. Counterfeiting is a persistent and significant problem in the sports industry. It is estimated that counterfeit sports merchandise accounts for billions of dollars in lost revenue annually, with replica jerseys, footwear, and equipment among the most frequently counterfeited categories of goods.

In Southeast Asia, where the appetite for European football clubs, global sports brands, and international sporting events is enormous, the challenge of trademark enforcement is particularly acute. Clubs and brands that have not taken steps to register their marks in markets such as Malaysia, Indonesia, Thailand, and Vietnam may find themselves unable to take effective action against infringers operating in those jurisdictions.

Broadcasting rights: the crown jewel

If trademarks are the foundation of sports IP, broadcasting rights are its crown jewel. The value of live sports content to broadcasters and streaming platforms is extraordinary. English Premier League broadcasting rights were sold for a combined value exceeding GBP 10 billion for the 2022 to 2025 cycle, covering domestic and international markets. Formula 1’s media rights deal with Liberty Media is valued in the billions. The Olympic broadcasting rights command multi-billion dollar sums from networks around the world.

These rights are protected primarily through copyright, which subsists in the audiovisual recordings and live transmissions produced by broadcasters. Unauthorised streaming of live sports content is one of the most significant forms of copyright infringement in the digital age, and it represents a growing challenge for rights holders who invest enormous sums in acquiring and producing sports content only to see it redistributed illegally through pirate platforms, social media clips, and illegal streaming services.

The legal tools available to rights holders include injunctions against illegal streaming platforms, takedown notices under platform terms of service, and in some jurisdictions, dynamic blocking orders that compel internet service providers to block access to infringing content in real time during live events. Malaysian courts have granted such orders, reflecting a growing recognition that the rapid and temporary nature of live sports piracy requires equally rapid and targeted legal responses.

Image rights and the athlete as brand

One of the most significant developments in sports IP over the past two decades has been the emergence of the athlete as an independent commercial brand. Athletes such as LeBron James, Cristiano Ronaldo, and Serena Williams are not merely sportspeople; they are global commercial entities whose names, likenesses, and personal brands generate revenues that rival or exceed their earnings from sport itself.

Image rights, meaning the right to control the commercial use of one’s name, likeness, signature, and personal brand, are not uniformly protected by statute across all jurisdictions. In some countries, personality rights are well-developed and enforceable. In others, athletes must rely on a combination of trademark registration, passing off, and contractual arrangements to protect their commercial interests.

For athletes, the practical implication is clear: register your name and signature as trademarks, secure your social media handles across all major platforms, and ensure that any sponsorship or endorsement agreement addresses the scope of permitted use, the territories covered, and the mechanisms for enforcement against unauthorised exploitation. For clubs and federations, the growing commercial value of individual athletes creates both opportunities and tensions, particularly where image rights agreements intersect with employment contracts and collective bargaining arrangements.

Ambush marketing: the uninvited guest

Major sporting events attract not only legitimate sponsors who pay handsomely for the right to associate their brands with the event, but also ambush marketers who seek to create the impression of sponsorship without paying for it. Ambush marketing takes many forms, from advertising campaigns that use event imagery or terminology without authorisation, to the distribution of branded merchandise near event venues, to the use of competing athletes in campaigns timed to coincide with a major event.

The financial stakes for official sponsors are significant. A company that pays tens of millions of dollars for the right to be the official beverage sponsor of a major sporting event has a legitimate commercial interest in ensuring that a competitor cannot create the same association for free. Event organisers and governing bodies have responded with a combination of contractual protections, bespoke legislation in host countries, and aggressive enforcement programmes designed to identify and shut down ambush marketing activities as quickly as possible.

Conclusion

Sport and intellectual property are inseparable. The commercial value that makes modern sport possible, from broadcasting deals and sponsorship revenues to merchandise sales and athlete endorsements, exists because IP rights exist to protect it. Without trademarks, without copyright, without image rights and the enforcement mechanisms that accompany them, the economic foundations of professional sport would be impossible to sustain.

For sports organisations, athletes, sponsors, and broadcasters operating in Southeast Asia, understanding and actively managing IP rights is not a legal nicety. It is a commercial imperative.

For further enquiries or advice, please contact us at kass@kass.asia for expert guidance.

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