Intellectual Property and Football: Legal and Economic Dimensions by: Dr. Mostafa Refaat Awad, Expert and Head of the WIPO File at the Permanent Delegation of the League of Arab States in Geneva.

24 April

Introduction

Sports are not merely a source of entertainment; they represent a global industry that forms a significant part of the global economy. Football, in particular, is the world’s most popular sport, followed by billions of fans. This popularity has turned football into a rich field for innovation and development, making intellectual property protection essential to ensure continued growth and safeguard the rights of all stakeholders.

1. Trademarks in Football

Clubs and national teams heavily rely on their trademarks to enhance their identity and increase revenues. Trademarks include club names, logos, and even jersey colors. For instance, the "Real Madrid" trademark is not just a name; it is a brand valued at approximately $1.5 billion, making it one of the most valuable sports brands worldwide.

However, challenges such as trademark infringement and counterfeit products bearing famous club logos persist. These violations impact revenues and tarnish the club’s image. Clubs, especially in emerging markets, are encouraged to utilize the Madrid Protocol to register their trademarks internationally, ensuring broader protection and enhanced global presence.

2. Broadcasting Rights and Digital Content

Broadcasting rights for matches are one of the largest revenue sources in football. For example, the English Premier League’s broadcasting rights have generated around $10 billion in the current cycle. These revenues are protected under intellectual property laws, granting exclusive rights to broadcasters covering sports events.

Nevertheless, the industry faces significant challenges, notably digital piracy. Reports indicate that global losses due to sports content piracy have exceeded $28 billion annually. To combat these challenges, clubs and federations are advised to collaborate with international organizations like WIPO to develop advanced tracking technologies and strengthen the enforcement of broadcasting rights.

3. The Role of International Agreements in Protecting IP in Football

International agreements are vital frameworks for protecting intellectual property associated with football. Through these agreements, clubs, players, and fans alike can benefit from enhanced fairness and innovation in the field.
• Madrid Protocol: Simplifies the registration of trademarks internationally. Major clubs such as Barcelona (Spain) and Al-Ahly (Egypt) benefit from this system to protect their trademarks across multiple markets.
• The Hague System for Industrial Designs: Helps protect designs for sports equipment, such as footballs and official kits. For instance, the official match ball used in the 2022 FIFA World Cup, hosted by Qatar, was protected under international design laws.
• The Lisbon System for Geographical Indications: Ensures the protection of region-specific products, such as hand-made footballs from Sialkot (Pakistan).
• WIPO’s Role: The World Intellectual Property Organization (WIPO) plays a crucial role in raising global awareness about the importance of intellectual property protection. Through services like the Madrid Protocol and the Hague System, WIPO provides advanced tools to help clubs and companies protect their IP rights and expand their global outreach.

4. Innovation and Technology in Sports Equipment Development

Innovation in football extends beyond on-field performance to include the development of sports equipment such as balls, boots, and refereeing technologies (e.g., VAR). These innovations are often protected by patents.
For example, Adidas introduced advanced technology in the "Al Rihla" football used in the 2022 FIFA World Cup, hosted by Qatar, incorporating an internal sensor to provide accurate data during matches. Such innovations demonstrate how intellectual property can support technological advancements.

5. Protecting Players’ Rights as Individuals and Brands

Players are considered living brands. Their names and images are used in advertising campaigns and commercial products. For instance, Cristiano Ronaldo’s annual earnings from the use of his name and image are estimated at over $40 million.
To protect their rights, players are advised to work with legal advisors to ensure fair terms in contracts related to marketing and the use of names and images. Additionally, sports organizations can develop policies to safeguard players’ rights in cases of disputes.

6. IP as a Foundation for Economic Growth in Football

Intellectual property serves as a primary driver for achieving sustainable revenues in football. For example, the licensed sports merchandise market was valued at approximately $35 billion in 2022. Protecting trademarks and designs contributes to the growth of this market.

Furthermore, intellectual property creates new job opportunities in various fields such as marketing, design, and technology. By protecting innovation, investments in talent development and infrastructure can be enhanced.

Conclusion

Intellectual property is not just a set of laws; it is a cornerstone for the sustainability and growth of the football industry. Through international collaboration and the enhancement of institutions like WIPO, innovation can be protected, and economic and social justice can be achieved.

It is essential to continue efforts to raise awareness about the importance of IP protection, contributing to a brighter future for this sport that unites people worldwide.