IP Rights in Sports: The Hidden Power Behind the Game

Introduction

Sports and Intellectual Property may appear to be distinct worlds; however, they meet in a dynamic way. Intellectual Property Rights (IPRs) works as a backbone in the legal structuring and commercialization of the sports industry, not only by branding international sports leagues but also broadcasting rights of certain major tournaments and protecting the image rights of athletes. Understanding the legal intricacies of IP in sports, today, is of more importance than ever as the sports business takes its roots into multi-billion-dollar enterprise.

IP AND SPORTS: THE LEGAL POWER GAME

The Growing Role of IP in Sports

The modern sports industry, these days, is not just limited to performance on the fields but also about performance in the commercial market. IP assets create notable values for teams, leagues, and individual athletes from digital streaming rights to sponsorships and merchandise. The International Olympic Committee (IOC), FIFA, and the Indian Premier League (IPL) are some modern day examples of sports industries leveraging IP law to build and safeguard their brand internationally.

Rising challenges and opportunities surrounding ownership, enforcement and licensing the scope of IP in sports is increasing with the augment of emerging technologies such as NFTs, augmented reality and e-sports, making the protecting of publicity and image protection even more needful.

Trademarks: Protecting Sports Brands

Trademarks are not longer constrained to logos or team names, mascots, catchphrases and even colors can be trademarked nowadays. For example NFL has “Super Bowl” as the registered trademark. The “IPL”, “Indian Premier League”, and similar other terms have been registered by the BCCI and thus safeguarded under trademark protection. The unauthorized usage for promotions, advertisements, and merchandise results to legal action as it constitutes trademark infringement.

During the IPL seasons, for instance, various businesses using the phrases like “thus cricket season”, “Support Your Team This IPL”, have received legal notices for the reason to attempt utilizing the fame of the game without approval. Such using of logos, slogans etc., even without a registered trademark, falls under the ambit of passing off for misleading the public and therefore attracts legal repercussions.

Case Insight: BPI Sports LLC v. Saurabh Gulati & Anr. (2023)

• Issue: Trademark squatting; the respondent registered “BPI SPORTS” in India despite it was a US-registered mark.
• Court’s Ruling: Recognized the trans-border reputation and ordered rectification of the trademark register.
• Significance: Upheld rights of international sports brands in India

Copyright: Protecting Broadcasting Rights

The Indian Copyright Act, 1957, plays a key role in preserving sports broadcasts. Section 37 confers broadcasters the sole rights to license, sell or rebroadcast footages. Nevertheless, challenges like piracy and unauthorized streaming jeopardizes the rights of the holders thus making imposition mechanism difficult.

Moreover, the growing misuse of technologies, such as mirror websites or peer-to-peer streaming demands for even more flexible legal framework enabling tech enforceability, including AI-based detection systems and watermarking. As the economic value continues to rise, so does the need for tightening copyright application laws while maintaining international cooperation.

Recent Development: The Delhi High Court in, Star India Pvt Ltd v. Jackstream.com (2023), granted injuction stating illegal streaming of IPL matches is a violation of copyright protections.

Athlete Image Rights and Publicity Rights

Athletes, these days, have been recognized as brand themselves. The image rights of player’s consist of their name, their voice, signature, likeness and performances. For the purpose of commercial promotion and brand endorsement these rights, known as publicity or image rights, are often licensed to sponsors and advertisers. Although there is no particular law for image safeguarding, in India, however have been recognized under article 21 (right to privacy and publicity).

Indian athletes such as Virat kohli, MS Dhoni, and PV Sindhu have cautiously taken care of their brand identities and have got their personal trademarks registered to protect their names, initials and slogans. These trademarks allow athletes to licensee their image rights for endorsements, gaming, commercializing and more, while allowing exclusive rights over their market use.

Notable Case: In, ICC Development (International) Ltd. v. Arvee Enterprises (2003), The Delhi High Court held that “The right of Publicity vests in an individual and he alone is entitled to profit from it.”

Ambush Marketing: A Growing IP Challenge

Ambush marketing is a technique by brands, when they try to link themselves with a event, typically a sporting event, without paying the sponsorship amount there by making unauthorized use of event’s publicity. This gives rise to legal conflict due to violation of rights of official sponsors. Though India lacks a strong statute protection, however, The Draft Sports (Online Gaming and Prevention of Fraud) Bill, 2018, attempted to address the said situation.

Licensing and Sponsorship Agreements

IP licensing in sports, in return for royalty payment, permits brands to use team logos, jerseys, and slogans for commercial advantages. Since the commercial value of sponsorship is often derived from the associations with major sporting events, the sponsorship agreements rely heavily on IP rights. Any mishandling in these agreements can result to loss of brand value and litigation.

Conclusion

Intellectual property rights, in the today’s very expanding area of sports, have started gaining limelight. IPR is playing a crucial role in protecting value and supporting competitive integrity, even from endorsing a cricket bat, designing team jersey to broadcasting a match. It is imperative for stakeholder such as athletes, teams, broadcasters, and sponsors, to have a deeper understanding of their IP rights, as sports law is progressively transforming. These games are no longer restrained to physical aspects; but increasingly legal.

In the transforming world, where sports law and IP law are no longer two separate identities and are inter-woven, therefore, it is of importance that athletes, sports federation and regulatory bodies consult IP professionals to understand deeply and formulate their marketing and commercial strategies, also to protect their rights, and play a proactive role during infringements and passing off. Hence, the future is no more about mere competitive sporting and games but also about legal rights adjoined, brand identity, and monitored commercialization.

Author: Somya Kataria, in case of any queries please contact/write back to us via email to [email protected] or at IIPRD. 

Refrences

1. The Copyright Act, 1957
2. The Trade Marks Act, 1999
3. ICC Development (International) Ltd. v. Arvee Enterprises, 2003 (26) PTC 245 (Del)
4. Star India Pvt Ltd v. Jackstream.com, CS(COMM) 242/2023
5. WIPO – “IP and Sports” Articles
6. BCCI Trademark Listings – Indian Trademark Registry
7. “Ambush Marketing in India” – FICCI Sports Law Committee Report
8. Draft Sports Bill, 2018 (India)