Agenda – KINE 3510 Week 4

• In the News: 2016 Summer Olympics - Rio de Janeiro; Forbes franchise valuations ; NFL labour situation

• Sport Marketing and the Law– Interview with Paresh Trivedi, Attorney at Law,

Proskauer Rose LLP• Public Relations• Sport Marketing and Popular Culture: A

Synergistic Relationship– Branded segment (LeBron James documentary)– Spotlight: WTA, NBA, WWE– In-class exercise: “Sexying” up the PGA

• Recap

The Legal Aspects of Sport Marketing

Objectives

• To introduce the key legal concepts and issues that affect the marketing of the sport product

• To inform sport marketers about the need, and the methods, to protect intellectual property associated with the creation of a sport product or event, or with ideas developed out of sport sponsorship and licensing programs

• To examine the legal limits of sport marketing and promotion so sport marketers can avoid legal liability

What Is Intellectual Property?• Primary goal of intellectual property law is to

reward invention, ingenuity, and creativity in an effort to maintain an open and competitive marketplace.

• It is made up of three areas:1. Trademarks

1. Protect unique words, names, symbols and slogans

2. Copyrightsprotect original works of authorship

3. Patentsprotect inventions (new designs and processes)

• Trademarks, copyrights and patents can be licensed, but use without permission is infringement

Trademark Law

• A trademark is a word, name, symbol, or device used by a person, generally a manufacturer or merchant, to identify and distinguish its goods from those manufactured and sold by others, and to indicate the source of the goods (see endnote 5 in book).

• Types of trademarks:– Trade dress– Service mark

• e.g World Series, NCAA Final Four

– Collective mark• e.g. NHLPA logo

Overview of Trademark Law:Purposes

• Trademarks identify the source or origin.• Trademarks protect consumers from

confusion or deception.• A trademark is used to designate a

consistent level of quality. • A trademark represents the goodwill of the

owner’s products or services.• Trademarks signify a substantial

advertising investment.

Types of Trademarks

Strength relates to distinctiveness and level ofprotections:

• Fanciful: Distinctive• Arbitrary: Common term associated with entity • Suggestive: Connotes something about

product • Descriptive: Commonly used word or phrase

that is difficult, although not impossible, to protect

• Generic: Commonly used word or phrase that is never entitled to trademark protection

Trademark Infringement

• Traditional trademark infringement: Confusion or mistake or used to deceive

• False designation of origin• Dilution

e.g. Tony LaRussa vs. Twitter

Determining Trademark Infringement

• The strength of the trademark • The degree of similarity • The similarity of the products involved• The market channels involved• The distribution channels involved • The intent of the defendant in adopting the

trademark • The sophistication of the potential consumers • The evidence of actual confusion

e.g. United States Olympic Committee vs. Olympic Supply

Other Issues Related to Infringement

Defenses to Trademark Infringement:

• Abandonment • Fair use defense • Genericness • Functionality

e.g. Robert Welsh vs. The Big Ten Conference

• Cybersquatting– e.g. Agassi Enterprises Inc. vs. andre-agassi.com

Ambush Marketing

• When a company capitalizes on the goodwill of an event by using tactics to imply an official association with that sport event

• The larger and more popular the event, the more often ambush marketing arises

Copyright Law and Sport Marketing

Copyrights, for instance, protect the music that is played during games and requires sport marketers to seek approval through ASCAP, which protects musicians’ copyrights in their works.

Works of AuthorshipThat Are Protected

• Literary works, such as books and stories• Musical works, including any accompanying words• Dramatic works, including any accompanying

music• Pantomimes and choreographic works• Pictorial, graphic, and sculptural works• Motion pictures and other audiovisual works• Sound recordings• Architectural works

Copyright Act Grants a Copyright Owner the Right

• To reproduce and distribute copies or sound recordings of the copyrighted work to the public by sale, rental, lease, or lending

• To prepare derivative works based on the copyrighted work

• To perform the copyrighted work publicly (literary, musical, dramatic, and choreographic works; pantomimes; motion pictures, and the like)

• To display the copyrighted work publicly (literary, musical, dramatic, and choreographic works; pantomimes; and pictorial, graphic, or sculptural works, including individual images of a motion picture or other audiovisual work)

• To perform the copyrighted work publicly by means of a digital audio transmission (sound recordings)

Copyright Infringement

1. The purpose of the use, including whether such use is of a commercial nature or is for nonprofit educational purposes

2. The nature (character) of the copyrighted work3. The amount and substantiality of the portion used

in relation to the copyrighted work as a whole4. The effect of the use on the potential market for, or

value of, the copyrighted work

Copyright infringement occurs when someone makes an unauthorized use of a copyrighted work. Courts consider four factors when determining whether copyright infringement has occurred:

Defenses to Copyright Infringement

The fair use doctrine: • Criticism• Comment• News reporting• Teaching (including multiple copies for classroom

use)• Scholarship• Research

e.g. Showing Animals respect and Kindness (SHARK)vs. Professional Rodeo Cowboys Association

Patents

• May be granted to anyone who invents or discovers any new and useful process, machine, manufacture, or composition of matter, or any new and useful improvement.

• A patent cannot be granted for a mere idea, only for the actual invention or complete description of it (see endnote 106 in book).

• Patent lasts 20 years. After patent runs out, anyone can use technology or make product.

e.g. Renata Marcinkowska vs. IMG Worldwide Inc.

The Right of Publicityand Invasion of Privacy

• The right of privacy protects against intrusion on one’s seclusion, the misappropriation of one’s name or likeness, unreasonable publicity, and placing one in a false light.

• The right of publicity prevents the unauthorized commercial use of an individual’s name, likeness, or other recognizable aspects of his or her persona.

e.g. World B. Free vs. Nike Inc.

Emerging Issues

• Global protection of intellectual property • Ownership of “real time” information and

player statistics

Public Relations

Objectives

• To understand public relations and its role in positioning and in the formulation of the marketing mix

• To recognize the importance of effective community relations programming in product positioning and effective marketing efforts

• To understand the role, scope, and influence of the media and how that role can be used in conjunction with public and community relations programming to alter perceptions and influence public opinion and support

Defining Public Relations

• “Public relations is the management function that evaluates public attitudes, identifies the policies and procedures of an individual or an organization with the public interest, and executes a program of action to earn public understanding and acceptance” (see endnote 3 in book).

• It is “the profitable integration of an organization's new and continuing relationship with stakeholders, including customers, by managing all communications contacts with the organization that create and protect the reputation of the organization” (see endnote 4 in book).

Public Relations Formula

• Public relations = Media relations + Community relations

Functions of PR Department

• Planning campaigns• Facilitating interviews• Disseminating press releases• Compiling statistical information and other helpful

promotion information• Holding press conferences

The ultimate goal for the public relations department is to cultivate a positive image of the company by proactively seeking and accommodating favorable opportunities in the press through these means:

Public Relations Specialist Skills

• Building Relationships • Communication • Creating the Public Relations Plan • Making the Pitch • Managing the Story • Talking Points • Crisis Management

Media Relations

• Reactive: Responds to inquiries.• Proactive: The point of initiation is the

organization rather than some external entity.

• Interactive: Develops mutually beneficial relationships with the media and assists the media on a variety of issues.

Three Distinct Forms of Community Relations

1. Those initiated by players

2. Those initiated by teams or institutions

3. Those initiated by leagues or governing bodies

Public Relations IntegratedWith Marketing

Interactive marketing communications strategy that seeks to create a variety of media designed to convey the philosophies, goals, and objectives of an organization to identified groups and publics for the purpose of developing a relationship based on comprehension, interest, and support

Public Relations Functions

• Provide information and general communication (to consumers, shareholders, suppliers, competitors, government agencies, and the general public).

• Inform and communicate.• Shape and enhance image. • Promote employee relations. • Gain political or popular support.• Recruit and develop business.• Launch new products or innovations.• Generate and collect feedback.• Cope with crisis.

Media Impact on Sport Public Relations: Sport in the Daily Mix of Life

• Athletes away from the playing field: Ball four

• Sport as entertainment: Monday Night Football

• Expanded sport coverage: ESPN

Strategic Planning and Public Relations

• Strategic planning is a philosophy of management based on identifying purpose, objectives, and desired results; establishing a realistic program for obtaining these results; and evaluating the performance.

• Public relations initiatives should be a part of the strategic plan, and public relations professionals should have input regarding the development of the plan.

Sport Marketing andPopular Culture:

A Synergistic Relationship

Experiential DNA

Sports

Aesthetic

Technological

Cultural/Political

Touch, sense, feel

Dramatic

Economic

Consumers Producers

Politicians Media

Competitors Fans

Interface Value

• Represents a brand’s ability to connect to multiple audiences

• The more it resonates the higher the interface value, the more successful the entertainment brand

• It is the material connection between the brand and the experience

• Long tail -> the ongoing demand for the interface value the brand generates

• Focusing on the long tail helps secure the future success of the entertainment brand– e.g. various MLSEL ventures

What strong examples exist in sport?

Criteria for Strong Interface Value

• Rich and consistent history (characters, narratives, archetypes)

• Story that is adaptable to different opinions and interpretations

• One that resonates with my own life• Experiential adaptability• Star power (personified interface value)• Previous history of brand success in a different

market• Mayhem and mystery surrounding the production

process• Production technologies as they feed the story and

its characters• An effective blending of all these elements

Authenticity

• Connection to athletes• Hard to generate, manage and prolong• Genuine original true performer vs. fake

engineered deceptive performer• Deauthentication – how? – “Fall from Grace

Myth”– e.g. baseball drug scandal (i.e. McGwire, Clemens)

• Paradise myth - Rookie + business accolade = superstar world-class entertainment product– e.g. rise of Tiger Woods

Sports

Media

Technology

Fashion

Video Games Music

Film