Chapter 9 Intellectual Property Law

Intellectual Property (IP)

Legal rights over artistic, creative, or commercial assets

Purpose of IP

Provides an economic incentive for creators and innovators to produce original works

Examples of IP

Music, inventions, symbols, designs, logos, broadcasts, and software

Sources of Revenue in Sport

Tangible and intangible revenue streams in sports organizations

Tangible Revenue

Physical items or services such as merchandise, tickets, and concessions

Intangible Revenue

Rights associated with player/team likeness, sponsorships, and logoed merchandise that generate significant income without producing physical goods

Trademarks

A word, symbol, or device that distinguishes a product or service from others

Governing Law for Trademarks

Lanham Act (1946) – protects trademarks and prevents unauthorized use

Functions of Trademarks

Identify origin of goods or services, signify quality, and aid in marketing and promotion

Types of Trademarks

Different categories based on distinctiveness and protection

Arbitrary/Fanciful

Unique, no prior meaning (e.g., Nike) – strongest protection

Suggestive

Suggests qualities or characteristics; requires imagination (e.g., Hot Pockets)

Descriptive

Describes a product; must acquire secondary meaning to be protected

Generic

Common terms; cannot receive federal protection (e.g., “Jell-O”)

Collective

Used by organization members (e.g., NBA)

Service Mark

Identifies services rather than goods (e.g., NCAA)

Special Protection

Olympic symbol and word protected under Ted Stevens Olympic and Amateur Sports Act

Ownership & Protection of Trademarks

Rights go to the first to use, continuous use required, federal registration optional but highly recommended

Trademark Infringement

Unauthorized use causing consumer confusion

Factors Considered in Infringement

Strength of mark, similarity, consumer sophistication, and good faith

Infringement Defenses

Fair use (descriptive use), parody (humor or critique), noncommercial use (not related to profit-making)

Copyright

Legal rights to reproduce and control creative works (literary, artistic, musical, or other forms of expression)

Examples of Copyrighted Works

Books, music, choreography, films, broadcasts, architecture

Exclusive Rights under Copyright

Reproduce, distribute, display publicly, perform publicly, create derivative works

Copyright Infringement

Unauthorized use that violates the owner’s exclusive rights

Right of Publicity

Common law right to control commercial use of one’s identity

Scope of Right of Publicity

Names, likenesses, performances, or other identifiable characteristics

Examples

NCAA litigation for unauthorized use of athlete likenesses in video games

Right of Publicity Infringement

False endorsement or unauthorized commercial exploitation of identity

Patents

Legal protection for inventions; provides 20-year exclusivity

Examples in Sports

Equipment innovations, apparel designs, unique game equipment, training devices

Patent Infringement

Unauthorized making, selling, or importing of patented items

Other Key IP Concepts

Additional legal protections and strategies in sports

Licensing

Legal permission to use IP (e.g., NCAA logos on merchandise)

Ambush Marketing

Unauthorized association with events to benefit a brand, harming official sponsors

Olympic Marks

Special legal protection for Olympic symbols (e.g., interlocking rings)

Domain Names & Cybersquatting

Purchasing domain names for brands and selling at inflated prices; potential infringement if used to confuse consumers