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Ambush Marketing And The Rugby World Cup

March 2011

If you are a business owner there is a good chance you will be eagerly anticipating the Rugby World Cup 2011 ("RWC"), and the significant commercial opportunities this event will bring.  You must however be mindful of the Major Events Management Act 2007 ("the Act"), a piece of legislation which protects the position of those who have paid for the rights to advertise in connection with such events.

Ambush Marketing

The obvious way to generate association with a major event such as the RWC is to enter into a sponsorship agreement with the official event organiser, whereby you agree on the terms of your right to advertise in connection with the event.

By contrast, Ambush Marketing is the practice of businesses trying to create an association with major events by advertising without entering into such an agreement (and by not paying official sponsorship fees).  Ambush Marketing, as encapsulated in the Act, also prohibits other advertising behaviours in association with major events which you may not think of as illegal.
 
What is special about the Act?

There is already ample legislation offering protection to owners of brand names and other intellectual property, with the Fair Trading Act 1986 ("FTA") forming the centrepiece.  The Act however offers a far more incisive tool for the authorities in dealing with persons attempting to pass off an association with major events such as the RWC, as it prescribes a strict code of prohibited activities that constitute offences.

The  Act prohibits:
  • Representations which suggest that individuals, businesses, brands, goods or services have an association with RWC when they do not.  The Act specifically identifies certain words, logos and other trade marks (prohibited material) which cannot be used by those other than the event organiser or official sponsors.
  • Advertising and promotional activities which are deemed an intrusion on RWC activities and / or the attention of the audiences of the activities.  This includes prohibition on street trading in areas which are deemed to be "clean zones" – that is, defined areas around the venue of the event.
  • Activities that may compromise the smooth running of the RWC, for instance, ticket scalping and pitch invasion.
  • Any kind of advertising which uses prohibited material in order to create an association – for instance, television and radio commercials, on-line/ internet advertising, printed materials, shop displays and window dressings, or merchandise.

Penalties

Businesses (or individuals) that are not official sponsors must proceed with extreme caution when advertising, marketing and promoting themselves and their products and services during major events such as the RWC  to ensure they do not create an association with the event that contravenes the Act.

If found to be in breach of the Act, business owners or individuals could be liable for civil damages as well as be subject to certain criminal sanctions.

Fortune Manning's commercial team is well placed to provide advice on intellectual property issues. Please contact David Selkirk on 09 915 2421 or at david.selkirk@fortunemanning.co.nz for further assistance.
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Contact

David Selkirk
Partner
DDI: (+64 9) 915 2421
E:david.selkirk@fortunemanning.co.nz
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