Intellectual Property Protection in the Sports Industry: An Empirical Analysis of Legal Challenges and Strategies

I. Introduction

Over People have made sports a part of their daily lives. They are so ingrained in our lives that they have become an essential part of human life. It has always been a field of immense importance and significance, from ancient times to this era of science and commercialization.

Its nature has shifted from being considered a leisure activity to one that contributes to global economies and generates revenue for individuals. Sports is now regarded as a multibillion-dollar global industry, generating investment in facilities, employing millions of people worldwide, and entertaining many more. The sports industry, which is a massive industry all over the world, has helped to bring various cultures and economies together over the last century.

The example of North and South Korea competing as a single team in the Olympics helped them cut their differences to a large extent after a long time. Professional sports teams' economic viability has increased due to marketing, promotion, franchising, merchandising, and brand building, and they have attempted to only associate with multinational corporations to increase their growth and influence.

The most popular sports, such as tennis, cricket, basketball, football, and car racing, have evolved into mega international events. These have now evolved into lucrative domestic sports events such as the Indian Premier League (IPL), Major League Soccer (MLS), the English Premier League (EPL), the Spanish La Liga, and others. International sports event organizers have reaped enormous financial rewards by leveraging and exploiting aggressive marketing campaigns that capitalize on the marketable potential inherent in these sports.

The commercialization of sports appears to be exceptionally comforting and promising, as it will assist in making gains not only at the individual level, but also at the national level, giving power to the sports business. People all over the world have made money by monetizing aspects of intellectual property rights in sports through various methods such as patents, trademarks, copyrights, merchandising, and so on. Intellectual Property Rights are extremely important and widespread in the sporting arena. Almost every component of the sports industry has intellectual property rights. Sports are powered by intellectual property.

In light of the foregoing, legal regulation of relationships related to the protection of intellectual property rights in sports is of great scientific and practical interest. In fact, the primary goal of this article is to investigate the peculiarities of the legal regulation of these relationships. International context - As social relations in sports became more complicated, there was a growing need for proper legal regulation (Kharytonov et al., 2021). According to Ukrainian law, the state is responsible for the development of physical culture and sports (Bolokan et al., 2021).²

Private legal mechanisms of regulation are necessary in modern sport because they provide the best way to protect the rights of individuals and legal entities - participants in sports relations (Tkalych et al., 2020). Simultaneously, both national and transnational legal systems, as well as "sports law and order," are gradually improving the legal and quasi-legal regulatory mechanisms (Kolomoiets et al., 2021).

The World Intellectual Property Organization (WIPO), a United Nations specialized agency based in Geneva, promotes innovation and creativity for the economic, social, and cultural development of all countries through a balanced and effective Intellectual Property system. Intellectual property has commercial value for sporting clubs and organizations and encompasses a wide range of intangible assets such as copyright, trademarks, and designs. Intellectual property rights, such as copyrights, trademarks, and designs, have become a significant source of value in the sporting arena. WIPO works to ensure that the benefits of the sports industry are widely and deeply distributed. Intellectual property has commercial value for sporting clubs and organizations, and it includes intangible assets such as copyright, trademarks, and designs (Kolomoiets et al., 2021).

Patent, design, copyright, and trade mark rights may apply to sporting equipment. Because the technology used in swimwear is inventive, it can be registered as a patent, the logo printed on the swimwear can be registered as a trade mark, the designer can obtain copyright, and the physical design can be registered as an industrial design. These registrations help to protect the value of the sporting equipment's unique design and marketing capabilities.

Patents protect the technology used to develop the shoe, designs protect the look of the shoe, trademarks distinguish the particular shoe from similar products and protect the shoe's reputation, and copyright protects any and every artwork and audiovisual creations used to publicize the shoe. Furthermore, IPRs are intertwined with many other aspects of the sporting industry, including sponsorship agreements, event promotions, athletes, and merchandising.

IPRs are used to promote sponsorships, games, teams, broadcasting and media deals, celebrity status, and so on. Barcelona, Real Madrid, Manchester United, and Liverpool are prime examples of intellectual property brand capitalization. IP aids in the development of sports and promotes the growth of the sports industry by allowing sporting organizations to finance sporting events.

Research Problem

At the moment, India's sporting industry is rapidly expanding, with almost no direct legislation in place to control and regulate it. IPR in the field of sports is extremely important in almost every component, from technological aspects and sporting equipment to sporting event broadcasting and so on. However, there are still numerous gaps in the sports sector.

With the current rate of expansion, the sports industry is becoming highly commercialized in today's world. With this level of commercialization and technological advancement, there is an increasing demand for intellectual property rights in the field of sports. There exist a lot of grey areas within the sports field where IP rights need to be solidified in order to provide express protection.³

Review of Literature

According to Shubhi Trivedi and Nidhi Buch (2023), sports being an inseparable part of human life, are no exception and have seen massive growth in recent times.⁴ Their research revolved around its regulation being governed through piecemeal legislation in India and they aimed to analyze the feasibility of extending protection to the performances and moves of sportspersons under the intellectual property regime. Their article made a significant contribution considering the recent advancements and participation of Indian contestants in various sports, including aesthetic sports, such as gymnastics. Part I of their article introduced the premise of the issue under study along with the interface of sports and intellectual property and part II dealt with issues pertaining to the protection of sports moves and performances under the three most important types of intellectual property: patent, trademark, and copyright. Part III they concluded by talking about the most infringed right under IP in Sports Industry where the results showed that the most significant infringed right was the trademark and according to Faizanur Rahman (2021), sports economy therefore, is an instructive case study of how an IP asset becomes a platform for economic activity and related industries.⁵ The author was of the opinion that IPRs were used as marketing tools toward the branding of games and connected events, sports clubs, teams, celebrity status which all in turn require protection to prevent any complications that may arise in future. He emphasised on the need of the hour for the Government to formulate stringent laws for enforcement of IP rights in sports.

Paras Sharma (2020) Says that every sport is well equipped with innovation yet sports cannot become a commercially productive asset without IPRs attached to it and he says that sports today have undergone rapid changes and have evolved very much since its inception and to a very large extent, Intellectual property rights have provided the right incentives to continuously inspire advancement in sports. His paper examined how intellectual property rights were used in the sports sector to protect assets, generate value, and stimulate growth and also provides an in-depth examination into the role of IP rights in the world of sports. Rakesh S. Menon (2015) in his article, "Intellectual Property Rights in Sports"⁶ discusses the various intellectual property rights (IPRs) that are relevant to the sports industry, such as copyright, trademarks, patents, and personality rights. It also discusses the legal challenges and strategies that can be used to protect IPRs in the sports industry. Rafael Ferraz Vazquez, Sport and broadcasting rights: adding value (April 2013)⁷ emphasised that, at the moment, India's sporting industry is rapidly expanding, with almost no direct legislation in place to control and regulate it. IPR in the field of sports is extremely important in almost every component, from technological aspects and sporting equipment to sporting event broadcasting and so on. However, there are still numerous gaps in the sports sector. With the current rate of expansion, the sports industry is becoming highly commercialized in today's world. With this level of commercialization and technological advancement, there is an increasing demand for intellectual property rights in the field of sports. P. Parmar, "Sports Events and Their Protection Under IPR" (2010)⁸ Sports is big business, and billions of dollars are spent on organizing and commercializing major sporting events like the FIFA World Cup, Cricket World Cup, and Summer and Winter Olympics. In this article, we will look at how the law can protect the significant investments made in these sporting events by organizers and sports teams, sponsors and merchandisers alike, particularly in relation to the 2012 London Olympic Games and the rise of the phenomenon known as 'Ambush Marketing'.

II. Legal framework in india: protection of ip rights in the industry of sports

1. Copyright Act, 1957

The Copyright Act of 1957⁹ plays an important role in protecting intellectual property in India's sports business. This statute protects many types of creative works related to sports. It includes live audiovisual broadcasts of sporting events, such as television and radio broadcasts. Furthermore, the Act applies to sports-related promotional items such as ads, posters, and brochures. This legal framework protects creative literary, dramatic, musical, and artistic works relating to sports against unauthorised use and infringement. Section 14¹⁰ defines various exclusive rights granted to the copyright owner, and Section 51¹¹ provides for remedies against copyright infringement. Broadcasting rights are a critical aspect of sports IP, especially with the rise of sports broadcasting. Sports events are protected against unauthorized broadcasting and rebroadcasting. Entities that hold broadcasting rights can take legal action against those who broadcast the event without permission. Section 37¹² provides for the protection of broadcasting rights. Section 51(a)(ii)¹³ addresses unauthorized rebroadcasting of broadcasts.

2. Trade Marks Act, 1999

The Trade Marks Act of 1999 is an important tool for safeguarding the individual identities of sporting entities and events. Trademarks get legal status under this statute, which includes safeguards for names, logos, emblems, and other identifiers. In the context of sports, this translates to protecting team names and logos from unauthorised use by third parties. It also includes a defence shield for names and emblems linked with sporting events, leagues, and tournaments. Sports merchandise, an important aspect of the sector, is likewise addressed, ensuring that items are exclusively associated with the entities they represent. Section 2(1)(zb)¹⁴ defines a "trademark" and Section 29¹⁵ provides for the infringement of registered trademarks. Section 48¹⁶ provides for the rights conferred by registration of trademarks, including the exclusive right to use the trademark.

3. Patents Act, 1970

The Patents Act of 1970¹⁷ expands its protections to include sports-related breakthroughs and inventions. This legal framework protects innovative and novel ideas, techniques, and technology. Patents are relevant in the context of sports to a variety of advancements, including creative sports equipment designs, cutting-edge training approaches, and game-changing sports-related medical products or technology. This act promotes innovation in the sports business by ensuring that original ideas receive the respect and protection they deserve.

4. Geographical Indications Act, 1999

In terms of preserving items connected with distinct geographical origins, the Geographical Indications Act of 1999¹⁸ is relevant for the sports business. This regulation protects items that have distinct traits, attributes, or reputations due to their origin. In the sphere of sports, this could refer to things such as sports equipment manufactured in specific locations famous for their quality. The status of Geographical Indications ensures that these items preserve their particular identity and reputation, increasing their value in the sports market.

5. Right of Publicity and Personality Rights

While India lacks a dedicated statute governing image rights, the recognition of the right of publicity and personality rights under the ambit right to privacy which is embodied in Article 21¹⁹ i.e. right to life & personal liberty provides a layer of protection for individuals within the sports industry. Athletes and celebrities can seek protection against unauthorized commercial use of their name, image, or likeness. This recognition serves as a safeguard against exploitation and unauthorized endorsements, allowing individuals to maintain control over their personal brand within the sports domain.

6. Sports Law and Regulations

The Indian sports business is governed by sports regulatory bodies and organisations, each of which has its own set of legislation and contractual agreements addressing intellectual property concerns. The Board of Control for Cricket in India (BCCI), for example, has set regulations that control the use of intellectual property, such as team logos and names. These rules help to preserve the integrity and exclusivity of intellectual property in the sports setting.

7. Licensing and Contracts

Licencing and endorsement contracts are critical components of intellectual property protection in the sports industry. Athletes, teams, and sports organisations can use these contractual structures to grant licences for the authorised use of their intellectual property. This includes logos, photos, and other identifiers, which enable for controlled use in exchange for contractual fees. Such agreements enable third parties to associate with sporting entities in an organised and legal manner while protecting intellectual property rights.

III. Importance of intellectual property rights in sports industry

(This graph shows the responses of the public who took part in the survey for this empirical analysis)

In the current sports industry landscape, intellectual property rights continue to hold immense significance. With the rapid advancements in technology, innovations such as wearable devices, data analytics tools, and virtual reality experiences have become integral to enhancing athlete performance and fan engagement. Intellectual property protection ensures that these innovative solutions remain exclusive to their creators, encouraging further investment and research in this field.

Moreover, the rise of digital streaming platforms and social media has amplified the importance of copyright and trademark protection. Sports broadcasts, team logos, and promotional content are shared and accessed globally in real-time, making it crucial to safeguard these assets against unauthorized use. This protection not only preserves the value of sports franchises and organizations but also ensures that fans receive quality, authentic experiences.

In a broader context, intellectual property rights foster collaboration between sports entities and technology companies. Partnerships to develop new equipment, training methodologies, and fan engagement strategies rely on clear IP frameworks to allocate ownership and commercial rights. This collaborative approach drives innovation while promoting healthy competition in the industry.

Ultimately, the robust protection of intellectual property rights in the sports industry serves as a driving force behind its continued growth and evolution, facilitating a balance between innovation, competition, and commercialization in an increasingly interconnected world.

IV. Legal challenges and strategies

The field of intellectual property (IP) in the sports industry presents a range of complex legal challenges that require careful consideration and innovative solutions. These challenges span various aspects of IP protection, enforcement, and management within the dynamic and evolving landscape of sports. The most common legal challenges observed are Infringement of Personality Rights, Ambush marketing, Counterfeiting and Infringement of Broadcasting Rights.

(This graph shows the responses of the public how took part in the survey for this empirical analysis)

1. Personality Rights:

Sports celebrities are created overnight in today's world, and this celebrity status leads to various forms of brand endorsement, image creation, revenue generation, and capitalizing on fame. Thus, endorsements, status, and image, as well as the use of personality, are major sources of revenue for sports celebrities. Personality right is the right to control any commercial exploitation of one's name, image, likeness, or any other aspect of one's personal identity. Furthermore, a sports celebrity may file and acquire a trademark in respect of his or her name under the Indian Trademark Act, 1999.

Sachin Tendulkar, for example, has a trademark on his name. Celebrities and other famous people have a personality right that entitles them to prevent their image from being exploited for ill-gotten gains. Some athletes and sports celebrities, on the other hand, extend the scope of their personality rights exploitation by establishing enterprises or ventures to produce, market, and sell merchandise bearing their image and personality rights. Another example of exploitation of personality and image rights is when a sports team launches a merchandising campaign featuring its most popular players.

However, it is argued that sports enterprises can only rightfully exploit such personality rights, which are based on the fact that the players are members of teams that compete in their competitions, and thus cannot extend their usage of the sportsman's personality rights to his individual personal rights. The Delhi High Court clarified this point in ICC Development (International) Ltd v Arvee Enterprises and Anr²⁰, holding that:

“The right of publicity has evolved from the right of privacy and can inhere only in an individual or in any indicia of an individual's personality like his name, personality trait, signature, voice, etc. An individual may acquire the right of publicity by virtue of his association with an event, sport, movie, etc. However, that right does not in here in the event in question, that made the individual famous, nor in the corporation that has brought about the organization of the event. Any effort to take away the right of publicity from the individuals, to the organizer (non-human entity) of the event would be vocative of Articles 19 and 21 of the Constitution of India. No persona can be monopolized. The right of Publicity vests in an individual and he alone is entitled to profit from it. For example if any entity, was to use Kapil Dev or Sachin Tendulkar's name/persona/indicia in connection with the 'World Cup' without their authorization, they would have a valid and enforceable cause of action.”²¹

Addressing personality rights infringement in the sports industry requires a multifaceted approach that combines legal reforms, industry standards, and proactive strategies. This paper outlines a comprehensive solution to mitigate personality rights infringement, ensuring athletes' control over their image and promoting a fair and ethical sports ecosystem.

Strategies that could be adopted to overcome this issue:

(i) Strengthening Legal Frameworks:

a. Clearer Right of Publicity Laws: Enhance existing right of publicity laws to explicitly protect athletes' names, images, and likenesses, ensuring legal recourse against unauthorized use.

b. Extraterritorial Jurisdiction: Develop mechanisms to enforce personality rights across jurisdictions, ensuring consistent protection globally.

c. Statutory Damages: Implement statutory damages for personality rights infringement to deter potential infringers and compensate athletes.

(ii) Establishing Industry Standards:

a. Code of Ethics: Develop an industry-wide code of ethics that emphasizes respect for athletes' personality rights and outlines consequences for violations.

b. Licensing and Endorsement Guidelines: Create transparent guidelines for licensing and endorsements, ensuring that athletes' consent is obtained for any commercial use of their image.

(iii) Technological Solutions:

a. Digital Watermarking: Encourage the use of digital watermarking to embed ownership information in images and videos, making it easier to track and identify unauthorized use.

b. Image Recognition Software: Employ advanced AI-based tools to detect and report instances of unauthorized image usage on online platforms.

(iv) Athlete Empowerment and Education:

a. Know-Your-Rights Campaigns: Launch educational initiatives that inform athletes about their personality rights, empowering them to recognize and address potential infringements.

b. Legal Support: Provide athletes with access to legal resources and advice to take action against personality rights violations.

(v) Collaborative Partnerships:

a. Athlete Associations: Collaborate with athlete associations to create a unified voice advocating for stronger personality rights protection within the sports industry.

b. Industry Collaboration: Engage broadcasters, sponsors, and endorsers in discussions to collectively combat personality rights infringement.

(vi) Streamlined Legal Proceedings:

a. Expedited Procedures: Establish expedited legal procedures specifically for personality rights cases, allowing quicker resolution and discouraging prolonged infringement.

(vii) Digital Platforms and Social Media Engagement:

a. Reporting Mechanisms: Partner with digital platforms to develop efficient reporting mechanisms for infringing content, facilitating prompt removal.

b. Platform Responsibility: Encourage platforms to adopt measures that prevent unauthorized sharing and screen recording during live broadcasts.

(viii)Continuous Monitoring and Evaluation:

a. Regular Audits: Conduct periodic audits to assess the effectiveness of implemented solutions and identify areas for improvement.

b. Evolving Strategies: Adapt strategies as technology and the sports industry landscape evolve, ensuring ongoing protection against emerging threats.

(ix) Public Awareness and Advocacy:

a. Media Campaigns: Launch public awareness campaigns to educate fans, viewers, and consumers about the importance of respecting athletes' personality rights.

b. Advocacy Efforts: Collaborate with media, influencers, and celebrities to advocate for stronger personality rights protection.

Combating personality rights infringement in the sports industry requires a concerted effort from legal authorities, industry stakeholders, athletes, and the public. By combining legal reforms, ethical guidelines, technological solutions, and widespread education, the sports ecosystem can be transformed into one where athletes' personality rights are respected and upheld, fostering a fair and ethical environment for all parties involved.

2. Ambush Marketing

Ambush marketing refers to a marketing strategy in which a company or brand seeks to associate itself with a particular event, such as a sports competition or a major cultural occasion, without having official sponsorship or authorization. This type of marketing is designed to capitalize on the attention and popularity of the event to promote their products or services, often creating confusion in the minds of consumers by giving the false impression of being an official sponsor or partner. Ambush marketing is typically done through creative and sometimes misleading means, aiming to ride the coattails of the event's publicity without incurring the associated sponsorship costs.

This practice undermines the integrity of official sponsorships, diluting their exclusivity and value. It can result in revenue losses for event organizers and impact the financial sustainability of sports events, potentially affecting their quality and scale. Moreover, ambush marketing confuses consumers by blurring the lines between official sponsors and non-sponsoring brands, leading to a distorted perception of event partnerships. This confusion not only harms the clarity of sponsorship messages but can also result in negative public perceptions and reputational damage for brands engaging in such tactics. Legally, ambush marketing raises concerns related to intellectual property rights and false advertising, potentially triggering legal actions. Additionally, the practice diminishes the return on investment for official sponsors, affecting their willingness to invest in future sponsorships. Ultimately, ambush marketing not only undermines the financial aspects of the sports industry but can also impact the overall experience and quality of sports events for athletes, spectators, and participants alike.

In India, the first case of Ambush Marketing was witnessed during the 1996 World Cup, wherein Pepsi was seen campaigning with the tagline "Nothing official about it" although the official sponsor for the tournament was Coca-Cola. Pepsi boldly launched the 'nothing official about it' campaign, which captured the attention of viewers. Pepsi recruited cricketing legends such as Sachin Tendulkar and Courtney Walsh to participate in the commercial. This was a blatant attack on Coca-Cola's marketing strategies. The plan was to capitalise on a sport that is nearly a religion in this region of the world. Since then, there have been numerous cases where such behaviour has been clearly seen. The Ambush advertisements were also seen by the Indian people on a few hoardings in Mumbai. It was when Jet Airways launched a campaign titled "We've Changed" and Kingfisher Airlines launched a campaign titled "We've Made Them Change." These two were further ambushed when Go Airways displayed a billboard stating, "We've Not Changed. We are still the most intelligent way to fly."

Strategies that could be adopted to overcome this issue:

(i)Clear Legal Framework:

Establish a comprehensive legal framework that explicitly defines and prohibits ambush marketing tactics. Implement stringent regulations that address various forms of ambush marketing, such as associative and direct ambushes. By clearly outlining the boundaries of acceptable marketing practices, legal measures can act as a deterrent and provide a basis for legal actions against offenders.

(ii)Strengthening Sponsorship Agreements:

Craft sponsorship agreements with clauses that explicitly prohibit athletes, teams, and other stakeholders from engaging in or endorsing ambush marketing activities. Establish clear penalties for breaches of these clauses, ensuring that stakeholders are aligned with the efforts to curb ambush marketing.

(iii)Responsive Social Media Monitoring:

Leverage social media monitoring tools to identify and counteract ambush marketing campaigns in real time. Swiftly respond to unauthorized social media posts or advertisements that attempt to associate with a sports event, preventing their reach and impact.

(iv)Controlled Venue Environment:

Implement stricter controls within event venues to prevent unauthorized advertising and promotional activities. Enforce regulations that require approval for all advertising and branding within the event space, ensuring that only authorized sponsors are allowed to display their messaging.

3. Counterfeiting

Counterfeiting refers to the unauthorized production, distribution, or sale of imitation or replica products that closely resemble genuine goods. These counterfeit products are designed to deceive consumers into believing they are purchasing legitimate and authentic items. In the context of the sports industry, counterfeiting involves the unauthorized reproduction of sports merchandise, apparel, equipment, and memorabilia, often bearing logos, team names, player names, and other trademarks associated with sports teams and events.

Counterfeiting, the illicit production and sale of imitation sports merchandise, inflicts a range of detrimental impacts on the sports industry. Economically, it translates into substantial financial losses as counterfeit goods flood the market at significantly reduced prices, siphoning revenue away from legitimate sports organizations and events. This erosion of financial resources threatens the sustainability of sports teams and their ability to invest in critical areas like player development, facilities, and fan engagement initiatives. Beyond economic ramifications, counterfeiting dilutes the very essence of sports brands. The proliferation of counterfeit sports apparel and memorabilia tarnishes the prestige of authentic logos and trademarks. Consumers inadvertently link inferior counterfeit products to the official brand, eroding its reputation and diminishing its perceived value. As a result, the cherished bond between fans and the sports entities they support is eroded, with disillusionment replacing the authentic connection that should characterize fan engagement.

The impact extends to consumer safety, a paramount concern. Counterfeit sports equipment, lacking the rigorous quality and safety standards of genuine products, endangers athletes and fans. Subpar materials and construction compromise the well-being of those who rely on authentic, high-quality gear for protection. This safety risk poses an ethical dilemma, underscoring the imperative to combat counterfeiting for the welfare of participants and spectators alike. Counterfeiting's repercussions reverberate throughout the ecosystem of sports sponsorships. The devaluation of official brands through counterfeit goods undermines the value of sponsorships, dissuading potential partners from investing in associations that could be tainted by inauthentic products. This, in turn, impacts the overall financial stability of sports events and organizations, creating a ripple effect that stifles growth and innovation.

Strategies that could be adopted to overcome this issue:

(i)Intellectual Property Protection:

Enhance the protection of intellectual property rights, including trademarks, logos, and designs associated with sports entities and events. Register and enforce these rights to prevent unauthorized use. Seek injunctions and legal actions against counterfeiters to send a clear message that counterfeiting will not be tolerated.

(ii)Technological Solutions:

Leverage cutting-edge technologies to authenticate and trace genuine products. Implement QR codes, NFC tags, holograms, and other anti-counterfeiting measures on merchandise. Utilize blockchain to create an immutable record of product origins and transactions, ensuring transparency and authenticity.

(iii)Collaboration with E-commerce Platforms:

Partner with e-commerce platforms to identify and remove counterfeit listings promptly. Implement mechanisms for reporting and verifying authenticity, and collaborate with platforms to establish strict policies against counterfeiting.

4. Broadcasting rights

One of the most valuable sports commodities is the live broadcast of sporting events. Live sports are one of the few entertainment mediums where advertisers can truly reach a mass audience given the increasing fragmentation of entertainment and the variety of television and online offerings. In fact, advertisers prioritize the biggest sporting events of the year. For instance, Disney Star, the official television broadcaster of IPL, said an astounding 50.5 crore viewers tuned in to watch the live broadcast of T20 matches on television and the number for total viewers, including coverages around matches and highlights, stood at 53.5 crore.²² Per second of an advertising video costs about Rs. 1,82,500/.²³ Media rights increasingly represent the fastest-growing segment of the sports market. The IPL has seen a compounded annual growth rate (CAGR) of 18% in its media rights from 2008 to 2023. The growth in absolute terms between the 2017 and 2023 cycles surged by a whopping 196%.²⁴ Another example in context to international/ other countries sports, The Super Bowl, the centerpiece of the American National Football League, attracted about 114 million viewers in 2017, and a 30-second slot of advertising cost about $5 million on average, or more than $166,000 per second.The sports market's fastest-growing industry is, by far, media rights. As previously stated, it is anticipated that by 2021, this market segment in North America will account for nearly 30% of all sports market revenues, growing at a compound annual growth rate of 4.3%. Talking about the other example from 2020, It was estimated that 3 million people watched the professional boxing match between Floyd Mayweather Jr. and Conor McGregor illegally (including through social media sites like Facebook), resulting in estimated revenue losses of $250 million.

However, detecting and combating piracy of live sports broadcasts is extremely difficult. Consider the websites like "VIPBoxTV, VIPLeague and VIPRow Sports". These websites broadcast pirated sports events, complete with banner and pop-up advertisements. Another example is “LiveTV.sx”, this site is the world's 1,750th most popular website²⁵, and it is managed in Panama with a domain name registered in the Caribbean by a Kazakh national. According to a 2011 report, tens of thousands of websites, peer-to-peer filing file sharing networks, and unicasts are illegally streaming live sports events. The widespread availability of illegal sports content, as well as the growing number of consumers willing to use it, is having a long-term negative impact on legitimate sports broadcasting. Pirated streaming is so common in many countries that legitimate viewership of live sports broadcasts is declining. In fact, a survey conducted back in 2020 in the UK revealed that more than 50% of all respondents ages 18 to 24 admitted to regularly watching pirated live broadcasts of sports events compared with only 4% of respondents over age 35, and younger viewers are half as likely to purchase a paid subscription for live broadcasting of sports compared with older viewers.²⁶

Piracy has profound economic implications for the sports industry. It undermines the revenue streams that broadcasters rely on, including advertising, subscription fees, and licensing agreements. As piracy spreads, the willingness of sponsors and advertisers to invest in broadcasting decreases, potentially affecting the quality of coverage and overall viewer experience. Broadcasters are actively developing technological countermeasures to combat piracy. Digital rights management (DRM) systems, watermarking techniques, and geo-blocking mechanisms aim to restrict unauthorized access and distribution. Additionally, legal actions against piracy offenders are pursued, though the global nature of the internet presents challenges in enforcement.

Strategies that could be adopted to overcome this issue:

The challenge lies in striking a balance between providing legitimate viewers with easy access to live sports content while safeguarding against piracy. Overly restrictive measures could deter genuine viewers, while lenient approaches could enable pirates to exploit the content. Broadcasters must adopt comprehensive strategies that combine technological innovation, legal recourse, and awareness campaigns. To overcome such infringements, the following solution can be adopted;

(i)Encryption Technology:

Employing robust encryption technology acts as a formidable barrier against unauthorized access and distribution of sports content. Through encryption, sensitive broadcasting signals and digital assets are transformed into encrypted codes that can only be deciphered by authorized recipients possessing the decryption key. This ensures that content remains inaccessible to unauthorized parties, effectively mitigating the risk of pirated broadcasts and illicit redistribution. Encryption technology also bolsters the security of streaming services, shielding live broadcasts and video-on-demand content from interception and unauthorized sharing. This not only safeguards the value of broadcasting rights but also enhances the user experience by guaranteeing high-quality, exclusive content delivery.

(ii)Anti-Screening Algorithms:

Anti-screening algorithms represent a cutting-edge solution designed to thwart unauthorized capturing and dissemination of sports broadcasts. These algorithms employ advanced machine learning techniques to detect and counteract attempts to record or capture broadcasted content using unauthorized devices. By analyzing patterns and behaviors indicative of screen recording or capturing, these algorithms can trigger countermeasures, such as disabling recording functions or introducing visual disruptions. This deters individuals from engaging in unauthorized redistribution and protects the exclusivity of live sports events. Anti-screening algorithms contribute to a controlled broadcast environment, curtailing the proliferation of counterfeit streams and safeguarding the interests of both content creators and consumers.

(iii)Digital watermarking:

Digital watermarking is a sophisticated technique that embeds imperceptible digital markers into images, videos, or other digital content. These markers serve as a digital signature, allowing content owners to track and trace their materials across various platforms and identify unauthorized use. This technology enables real-time monitoring and identification of infringements, enabling prompt action to protect valuable IP assets.

V. Small role of indian courts: barrier due to lack of expert knowledge

In India, there have been disputes concerning broadcasting rights²⁷ and arbitrary actions by the Sports Authorities.²⁸ Sport adjudication usually necessitates the application of a number of rules. Because sports issues include matters requiring professional knowledge in the fields of games, Indian courts have refrained from adjudicating on them. Unfortunately, the Indian Legislature has shown no interest in developing a legal framework for sports that is compatible with the current situation. As a result, sports law in India is thoroughly out-of-date and out of step with developments in the field, despite the existence of a large number of sports authorities in India, as opposed to the United States of America, France, China, and Canada.

The judgement of the Apex Court of India in the Zee Telefilms case is sometimes termed as the “magna cart” a Sports Jurisprudence.²⁹ This case raised an intriguing question concerning the arbitrary cancellation of broadcasting rights to the petitioners, who had made the highest bid and were thus the rightful claimant of the telecast rights. Dissatisfied with the BCCI's harshness, the petitioners approached the Court under Article 32, requesting that the agreement with the BCCI be enforced. Although the majority of the bench rejected the petition due to the technicality of the BCCI not falling under the definition of 'State' as defined in Part III of the Constitution, the minority judgement of Justice Sinha, in which he laid bare the important role that cricket plays in India, is a rare treatise on the role of sporting authorities in the international sphere. This is possibly the only decision in India that has addressed the significance of games in such depth.

In addition to the Zee Telefilms case, a number of other decisions have shaped the body of Indian sports law precedent. The Apex Court had the chance to once more examine the significance of sports in India in a case that was comparable. The appropriateness of the representatives' appointment to the Indian Olympic Association in this case. The Supreme Court made the following comment while expressing its reluctance to render a decision in the case: This does not seem to be a matter where individual rights in terms of the laws and rules of the Society should engage our attention. The community has come to view sports as being of utmost importance in modern times. For more than a few decades, international sports have been in the spotlight and have grown in importance. In some of the most recent Olympic Games, the performance of small States was excellent and laudable while India, a great nation with the second-highest population in the world, performed poorly. Sports continue to be neglected and call for better governance as a result of the authorities' lack of interest.

Regulatory organizations like the BCCI, IHF, AIFF, BFI, AITA, and most importantly the Sports Authority of India are not in short supply yet, there is no central authority apart from the Ministry of Sports to ensure the proper management of these institutions in a transparent manner. In some cases, a sports organization like the BCCI—the richest sports organization in India financially—has outright refused to join the Ministry of Sports. This highlights the close connection between the Government and sports organizations for their own self-interests. The Supreme Court addressed this issue and made the following ruling in the Zee Telefilms case: Given the significance of sports in the modern world, it should not be the case that the majority of sports organizations in India are not accountable to the government or any other central body.

VI. Conclusion

The realm of intellectual property in the sports industry is a multifaceted landscape characterized by intricate legal challenges and evolving strategies. This empirical analysis delved into key issues encompassing personality rights, ambush marketing, counterfeiting, and broadcasting rights. These challenges pose significant threats to the integrity, financial sustainability, and reputation of the sports industry, demanding innovative and collaborative approaches for mitigation.

The right of publicity and personality rights are paramount for athletes and sports celebrities, enabling them to capitalize on their fame and image. However, the exploitation of personality rights through unauthorized endorsements and merchandising campaigns raises ethical and legal concerns. The need for a robust legal framework, industry standards, and technological solutions is essential to protect athletes' control over their image and preserve the authenticity of sports brands. Ambush marketing, while creative, undermines the sanctity of official sponsorships, diluting their exclusivity and impacting revenues. The dynamic strategies outlined above offer a comprehensive approach to combat ambush marketing, striking a balance between creative marketing tactics and ethical sponsorship practices.

Counterfeiting presents a grave challenge to the sports industry, eroding revenue streams, damaging brand reputation, and compromising consumer safety. The multifaceted strategies detailed earlier provide a holistic roadmap to deter counterfeiters, safeguard genuine products, and maintain the trust of consumers and stakeholders. Broadcasting rights, a cornerstone of sports entertainment, face piracy threats that undermine revenues and viewer experiences. Technological advancements, legal measures, and collaborative efforts outlined in this analysis offer a comprehensive shield against illicit broadcasting practices, ensuring fair compensation for content creators and enhancing the quality of sports broadcasts.

While these issues persist, the small role of Indian courts and the need for modernized legal frameworks underscore the urgency for legal reforms and improved governance. The delicate balance between preserving athletes' rights, fostering innovation, and upholding ethical standards within the sports industry requires continuous vigilance, adaptation, and stakeholder collaboration.

In essence, the sports industry's future prosperity hinges on the effective navigation of intellectual property challenges. By embracing the recommended strategies, sports organizations, athletes, policymakers, and industry stakeholders can fortify the integrity of sports, safeguard their creative assets, and create a sustainable and ethically sound ecosystem that resonates with fans, athletes, and partners alike. Through collective effort and unwavering commitment, the sports industry can emerge stronger, more resilient, and more aligned with the principles of fair play and respect for intellectual property rights.

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VII. References

1. Rahman Faizanur, (2021). Analysing the Impact and Role of Intellectual Property Rights in Sports. In book: Law relating to Sports in India (pp.37-46)Edition: First, Chapter: 4, Publisher: Taxmann Publications Pvt. Ltd., New Delhi.

2. Paras Sharma. (2020), INTELLECTUAL PROPERTY RIGHTS IN SPORTS, 2020 IJCRT | Volume 8, Issue 3 March 2020 | ISSN: 2320-2882.

3. Shubhi Trivedi and Nidhi Buch, Intellectual Property Protection for Sports Performances and Sports Moves: An Analysis Under the U.S., EU, and Indian Laws. Gaming Law Review.May 2023.164-172. http://doi.org/10.1089/glr2.2022.0052, Published in Volume: 27 Issue 4: May 15, 2023.

4. https://doi.org/10.46398/cuestpol.3969.33

5. https://doi.org/10.1089/glr2.2022.0052

6. Rakesh S. Menon (2015, Intellectual Property Rights in Sports, ALLIANCE SCHOOL OF LAW ALLIANCE UNIVERSITY, BANGALORE JUNE, 2020, http://gnanagang a.inflibnet.ac.in:8080/jspui/bitstream/123456789/314/1/Rakesh%20S%20Menon.pdf

7. Sport and broadcasting rights: Adding Value. Rafael Ferraz Vázquez, April 2013. WIPO Magazine.

8. Parmar, Pariksha. “Sports Events and Their Protection Under IPR.” (2010), https://api.semanticscholaar.org/CorpusID:110619359.

9. The Guardian, More than half of young people watch illegal streams of live sports, study finds, 25.4.2017, https://www.theguardian.com/sport/2017/apr/25/illegal-streams-live-sports-sports-industry-group.

10. Secretary, Ministry of Information and Broadcasting & Cricket Association of Bengal, AIR 1995 SC 1236.

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Footnotes

1. Author is a Student at Saveetha School of Law, Chennai, India.

2. Cuestiones Políticas, Intellectual property law in the field of sports: specifics of manifestations and features of legal regulation, Vol. 39, No. 69 (Julio - Diciembre) 2021, 530-546, https://doi.org/10.46398/cuestpol.3969.33 ↩

3. Rakesh S. Menon (2015, Intellectual Property Rights in Sports, ALLIANCE SCHOOL OF LAW ALLIANCE UNIVERSITY, BANGALORE JUNE, 2020, http://gnanaganga.inflibnet.ac.in:8080/jspui/bitstream/123456789/314/1/Rakesh%20S%20Menon.pdf ↩

4. https://doi.org/10.1089/glr2.2022.0052 ↩

5. Rahman, Faizanur. (2021). Analysing the Impact and Role of Intellectual Property Rights in Sports. ↩

6. Rakesh S. Menon (2015, Intellectual Property Rights in Sports, ALLIANCE SCHOOL OF LAW ALLIANCE UNIVERSITY, BANGALORE JUNE, 2020, http://gnanaganga.inflibnet.ac.in:8080/jspui/bitstream/123456789/ 314/1/Rakesh%20S%20Menon.pdf ↩

7. Sport and broadcasting rights: Adding Value. Rafael Ferraz Vázquez, April 2013. WIPO Magazine. ↩

8. Parmar, Pariksha. “Sports Events and Their Protection Under IPR.” (2010), https://api.semanticscholar.org/Co rpusID:110619359. ↩

9. The Copyrights Act, 1957. ↩

10. The Copyrights Act, sec. 14,1957. ↩

11. The Copyrights Act, sec. 51,1957. ↩

12. The Copyrights Act, sec. 37, 1957. ↩

13. The Copyrights Act, sec. 51,1957. ↩

14. The Trade Marks Act, sec. 2, sub. 1, 1957. ↩

15. The Trade Marks Act, sec.29, 1957. ↩

16. The Trade Marks Act, sec.48, 1957. ↩

17. The Patent Act, 1970. ↩

18. The Geographical Indications Act of 1999. ↩

19. CONST INDIA, art. 21, 1950. ↩

20. VII AD Delhi 405. ↩

21. Nishant Kewalaramti, Character merchandising, Journal of Intellectual Property Rights http://nopr.niscair.res.in/bitstream/123456789/14770/3/JIPR%2017(5)%20454-462.pdf\ ↩

22. Gourab Das, Disney Star, JioCinema's IPL 2023 viewership fight ends with record numbers for both, The Economics Times (Jun 08, 2023, 10:16 PM IST), https://economictimes.indiatimes.com/industry/media/e ntertainment/media/disney-star-jiocinemas-ipl-2023-viewership-fight-ends-with-record-numbers-for-both/articleshow/100843590.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst. ↩

23. The Media Ant, Advertising in IPL 2023, https://www.themediaant.com/television/indian-premier-league-2023-tv-advertising ↩

24. Varuni Khosla, IPL brand value touches $3 billion, LiveMint (10 Jul 2023, 05:07 PM IST), https://www.livemint.com/sports/cricket-news/ipl-brand-value-touches-3-billion-11688987841596.html. ↩

25. Paras Sharma. (2020), INTELLECTUAL PROPERTY RIGHTS IN SPORTS, 2020 IJCRT | Volume 8, Issue 3 March 2020 | ISSN: 2320-2882. ↩

26. The Guardian, More than half of young people watch illegal streams of live sports, study finds, 25.4.2017, https://www.theguardian.com/sport/2017/apr/25/illegal-streams-live-sports-sports-industry-group. ↩

27. Secretary, Ministry of Information and Broadcasting & Cricket Association of Bengal, AIR 1995 SC 1236. ↩

28. Zee Telefilms v. Union of India, (2005) 4 SCC 649. ↩

29. Zee Telefilms V. Union of India (2005) 4 SCC 619. ↩