ambush marketing douglas j. wood partner reed smith llp
TRANSCRIPT
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Ambush Marketing
Douglas J. WoodPartner
Reed Smith LLP
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Investment in sponsorship feesLocation $ AmountSeoul (1988) US$ 338
MillionBarcelona (1992) US$ 700
MillionTurin (2006) US$ 4
BillionBeijing (2008)Main Sponsors US$ 80
Million (2005-2008) each
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What is ambush marketing?
• Origin– Circa the 1984 Olympics in Los Angeles (first
Olympic games to market sponsorship)– Created by frustrated marketers (non
sponsors) who turned to ambush marketing to:• maintain some association with the event
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What is ambush marketing?
• Generally defined as:• marketing and promotional activities
that:– seek an association with a sponsored event
• without the authorization or consent of the
organizer of the event or sponsor, and
• without paying the requisite fee
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What is ambush marketing?
• Goal:– to misappropriate or capitalize on the goodwill
and popularity of the sponsored event– intentionally confuse the public into thinking
that the ambush marketer is the official sponsor of the event
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What is ambush marketing?
• to deflect some attention away from the
competing sponsors
• to reduce the effectiveness of their
communication while also undermining the value
and the quality of the sponsorship opportunity
that was sold
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What is ambush marketing?
• The result:– consumers may be confused as to who is
the official sponsor of the event– ambush marketing may impact
negatively on sponsorship rights
• Therefore:– sponsors seek some guarantee from the
organizer of the event that offenders will be pursued (in the sponsorship agreement)
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Forms of ambush marketing
• Simultaneous promotions (for example:
sample/free product distribution at sponsored
event, billboard advertising or flying blimp with
advertiser’s mark over venue)
• Purchase of sub-category rights (for example:
broadcast rights purchased from a TV network
from marketers who are not official sponsors of
the event for the duration of the sponsored
event)
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Forms of ambush marketing
• May involve the misappropriation of trademarks
available to official sponsors by the use of logos
or images associated with the event (example:
Olympic rings) or involve design variations of
protected logos
• Often done by using city, country or even generic
names to avoid trademark infringement
• May involve the use of official tickets or prizes in
sweepstakes to imply an association with the
organization or event
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AMBUSHERS
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Special Teams
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Soccer European Championship 2000
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Athletics World Championship 2001
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What is allowed?
Best Media Markt ever:We will get the Title!
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What is allowed?
There is only one attraction in 2006:Why don‘t you drive there?
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What is allowed?
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THE 2006 EXPERIENCE
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Italy
The Specific law No. 167 of August 17th, 2005
• Introduces measures to protect the Olympic symbols
during the Turin 2006 Olympic Winter Games
• Reserves all rights concerning use of Olympic symbols to:
– Italian National Olympic Committee
– Organizing Committee for the 20th Winter Games, and
– Executive Agency of the 20th Winter Games
• Allows use by third parties on prior authorization
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Italy
• The Law:– Prohibits:
• publication, commercial distribution and sales of products or services with distinctive signs likely to suggest the existence of a license, authorization or other form of association,
• explicitly bans “ambush marketing” (i.e. “activities for profit performed in parallel to those properly licensed or authorized.”
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Italy• The Law:
– Provides (aside from ordinary remedies available for TM
infringement, unfair competition and misleading
advertising):
• administrative sanctions (fines) from Euro 1,000 up to
Euro 100,000,
• enforcement through Financial & State Police and
competent Legal Authorities,
• possibility of obtaining seizure of all infringing products,
• protection coverage until December 31st, 2006.
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How did it work?
• No Olympic Pizza or Cake on sale in Turin
• No fly zone over sports venues• Bar Olympic (pub in central location)
had to cover the logo• Same obligation for a sports apparel
and equipment shop
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How did it work?
• At sports venues:– Special sponsor brand protection teams
asked reporters:• to cover the logos on their laptops with
black electrical tape,• to strip of logos from their beverage
bottles, or• to put them under the desk.
• Logos on porcelain in venues’ restrooms were also tape covered
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How did it work?
Despite huge efforts some teams run afoul
Logo on the helmet, duly covered
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The TARGET Express Train
• A moving billboard
• Spectators approaching the sports venues travelled on special “Target Express” trains:– red and white bull’s-eye logos everywhere
– when leaving at stations connecting to Olympic
locations, riders were provided with wooden train
whistles, air horns, and large foam gloves shaped as
hands, all with Target’s logo
– Riders were greeted with the slogan “Target helps you
express your passion. Get ready to make some noise!"
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What else has been allowed?
• Examples:– “Our lemonade for the World Cup ...“– “For the World Cup, we are
presenting ...“– “We are flying you to the soccer World
Cup 2006 “– “Our World Cup special: ...“– “For the soccer World Cup 2006, we are
dropping our prices for the period from ...“
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WHAT’S COMING UP?
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London 2012• In discussion, protection on:
– Other words as: “games”, “medal”, “gold”,
“silver”, “bronze”
– “2012”, “sponsor”, “summer”
• While a fierce struggle takes place between:
– Sponsors/Organizers (in favour of maximum
protection)
– Business and Advertising Industry (worried
about excessive barriers/restrictions)
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London 2012
• Relaxed Italian last-minute approach: – a new law 6 months prior to the OWGs in
Turin
• Pragmatic British way of dealing with money issues:– a draft bill 6 years ahead of the 2012
Games in London
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London 2012• Draft bill proposes protection on:
– Words “Olympic”, “Olympiad”, “Olympian/Olympic
rings”
– Team GB & BOA logo, British Paralympic Ass. & team
logos
– Words London 2012, London's bid logo & derivatives of
London2012.com,
– 2012 Games logo and mascots (not designed yet),
– Olympic motto “Citius, Altius, Fortius” (Faster, Higher,
Stronger)
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London 2012
Tactics like this won’t be allowed in London.
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CHINAAMBUSH MARKETING
2008 Beijing Olympics
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• China is poised to become the world’s second largest consumer market by 2014
• From 1979 to 2005, China’s real GDP grew at an average annual rate of 9.6%
• GDP hit 18.2 trillion yuan (US$2.3 trillion) in 2005
• Retail sales in 2005 reached US$827 billion
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China Laws & Regulations
• No specific laws or regulations on ambush marketing.
• Laws that have some effect are:– Article 21 of the Advertising Law of the
PRC– Article 2 of the Law Against Unfair
Competition of the PRC
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China’s Fight Against Ambush Marketing
• Beijing Regulations on the Intellectual Property Protection of Olympics-related IPRs
• Regulations on the Protection of Olympic Symbols
• Beijing 2008 Olympic Games Sponsorship Program
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Are the Measures Enough?BeijingBeijing Regulations on the Intellectual Property Protection of Olympics-related Intellectual Property Rights
China State CouncilRegulations on the Protection of Olympic Symbols
●Olympic symbols and emblems●Mascots●“Olympic Games”●“Green Olympics”“Beijing 2008”, ●“Implied commercial purposes”
Organizing Committee (“BOCOG”)●No advertisements allowed in any Olympic venue without BOCOG
approval●Size and location of logos on athlete’s apparel strictly regulated ●All outdoor advertisements in the host and co-host cities (Beijing,
Tianjin, Shanghai, Qingdao, Shenyang and Qinhuangdao) are managed by BOCOG
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Lacoste vs. Niannian Gao, et. al.
•Seizure of infringing goods•Apology in China newspapers•Stop to production and sale•Fine of Rmb760,000, roughly US$100,000•Retailer liability
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Finding Balance in Ambush Marketing
• Review the Beijing 2008 Olympic Games Sponsorship Program
• Adopt a comprehensive sponsorship package
• Consolidate, enhance and protect the rights and privileges of the sponsoring corporations
• Find balance in the anti-ambush marketing program of BOCOG
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Thank You