The Olympics are a marketing bonanza, and companies pay millions of dollars to be counted among the official Olympic sponsors and to participate in the exclusive advertising that follows. The 2012 London Olympics will kick off on July 27, and the organizers have set the tone for combating unauthorized use of the “Olympic” trademarks and other forms of “ambush” marketing.
Olympic Trademarks
There are several “Olympic” trademarks, including “Olympic,” “Olympian,” “Paralympic,” “Paralympian,” London 2012,” the Olympic motto “Citius Altius Fortius” (Faster Higher Stronger), the famous five-ring design, and the London Olympic and Paralympic Games’ mascots “Wenlock” and “Mandeville.”[1] In many countries, including in the United Kingdom, the Olympic trademarks are heavily protected property often enjoying special statutory protection.
Any commercial use of the Olympic trademarks during the 2012 Olympics will require written authorization from the International Olympic Committee (“IOC”) and the London Organizing Committee of the Olympic and Paralympic Games (“LOCOG”). The IOC and LOCOG will strictly control the use of the Olympic trademarks to ensure that they are properly used and to protect the massive revenues generated via the official Olympic sponsorship agreements.[2]
Sponsorship revenues provide the majority of the money needed to fund the over $2 billion budget for the Olympics.[3] To protect the integrity of its sponsorship program, the IOC typically requires Olympic host countries to enact special legislation that provides strict penalties for ambush marketing. “Ambush” marketing is defined as activities by nonsponsor commercial entities that “suggest that they or their products are associated with the [Olympics]” or that seek to exploit the public interest in the [Olympic] event by “exposing their brands to spectators at the [Olympic] event and/or broadcast viewers” for commercial purposes.[4]
Under the regulations, it is unlawful for any entity to falsely represent any association, affiliation, endorsement, sponsorship or relationship with the Olympics or Paralympics.[5] For example, the IOC states that unlawful association with the Olympics is likely if a nonsponsor advertises or markets goods or services in a manner that:
(i) uses a combination of any of the following two words: “games,” “two-thousand and twelve,” “2012” and “Twenty-Twelve,”; or
(ii) uses any one of the previous words and the word(s) “London,” “medals,” “sponsors,” “summer,” “gold,” “silver” or “bronze.”[6]
Another example of “ambush” marketing would include the unauthorized advertising, sale or distribution of a nonsponsor’s products for commercial purposes in the “event zones” and during the “event periods.” An event zone is a designated area that includes the Olympic venues and the surrounding area. The event period typically includes at least one day prior to an event at a particular Olympic venue, as well as the day of the event.
Although there are exceptions, distributing materials, displaying billboards, wearing or distributing clothing, holding up electronic devices (mobile phones), or wearing body paint (beware streakers!) in an event zone during an event period that display the brand of a nonsponsor for commercial purposes could all qualify as prohibited activity. Nonsponsors should carefully review the event zone maps and event period schedules (see http://www.london2012.com) to avoid violating the regulations.
Exceptions to the above would include, for example, a person wearing a costume, clothing or body paint bearing a nonsponsored brand, or using an electronic device displaying a nonsponsored brand, if that person is not knowingly participating in an ambush marketing campaign.[7] In addition, persons that unknowingly become involved in an ambush marketing campaign (e.g., wears a hat given to him or her by someone else that bears a nonsponsored brand) will not be liable for violating the regulations as long as the individual ceases the activity upon learning of involvement in an ambush marketing campaign.
The Olympic regulations also prohibit unauthorized “trading” within the event zones. As defined, “trading” includes street peddlers, entities providing public entertainment for gain or reward, entities providing retail, food and other services, and even collecting donations for charities.[8] Again, exceptions exist, such as for merchants who, long before the London Olympics, established and continue to operate their business in an area that will be designated an event zone during the London Olympic Games.
Olympic authorities have stated that they will vigorously and strictly enforce regulations established to deter ambush marketing. According to the IOC, the strict anti-ambush marketing regulations ensure that official Olympic sponsors gain full advantage of their investment, generate revenue for the Olympics, and support an enjoyable and welcoming environment for spectators.
Of course, there are always non-Olympic sponsor entities who try to find creative avenues for promoting their brands during the Olympics without violating anti-ambush marketing regulations. In addition, some nonsponsor entities are extremely aggressive in promoting their brands during the Olympics even with the risk of violating anti-ambush marketing regulations due to the sometimes massive amount of publicity generated from the “ambush.” Let the games begin!
–By Susan Natland and Gregory Phillips, Knobbe Martens Olson & Bear LLP
Susan Natland is a partner and Gregory Phillips is an associate in Knobbe Martens’ Orange County, Calif., office.
The opinions expressed are those of the authors and do not necessarily reflect the views of the firm, its clients, or Portfolio Media Inc., or any of its or their respective affiliates. This article is for general information purposes and is not intended to be and should not be taken as legal advice.
[1] Using the Brand (available at http://www.london2012.com/about-us/our-brand/using-the-brand).
[2] Id.
[3] Brand Protection, Non-Commercial Organization – What you Need to Know, The London Organizing Committee of the Olympic Games and Paralympic Games Ltd. (Aug. 2010) (available at www.london2012.com/documents/brand-guidelines/guidelines-for-non-commercial-use.pdf)
[4] Advertising and Trading, Detailed Provisions of the Advertising and Trading Regulations, Olympic Delivery Authority (Nov. 2011) (available at http://www.london2012.com/mm/Document/Publications/General/01/24/09/42/detailed-provisions-of-the-advertising-and-trading-regulations.pdf )
[5] Using the Brand (available at http://www.london2012.com/about-us/our-brand/using-the-brand).
[6] Brand Protection, London 2012’s UK Statutory Marketing Rights, April 2010 (available at http://www.london2012.com/mm/Document/Publications/General/01/24/71/64/statutory-marketing-rights_English.pdf)
[7] Advertising and Trading, Detailed Provisions of the Advertising and Trading Regulations, Olympic Delivery Authority (Nov. 2011) (available at http://www.london2012.com/mm/Document/Publications/General/01/24/09/42/detailed-provisions-of-the-advertising-and-trading-regulations.pdf )
[8] Id.
