IP and Sports Organizations Case Study: the IOC. Parts 1 & 2. WIPO Regional Seminar on Intellectual Property and Sports for the Association of

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1 IP and Sports Organizations Case Study: the IOC Parts 1 & 2 WIPO Regional Seminar on Intellectual Property and Sports for the Association of South East Asian Nations (ASEAN) Countries Carlos CASTRO, Senior Legal Counsel - Head of Copyright & Content Affairs Jakarta, Indonesia 27 November 2017

2 Agenda Part 1 1. The Olympic Games 2. The Olympic Properties Part 2 3. Exploitation 4. Protection 5. Relevance of IP 2

3 (1) The Olympic Games

4 From Olympia to Paris First ancient Olympic Games can be traced back to 776 BC. They were dedicated to the Olympian gods and were staged on the ancient plains of Olympia, Greece. They continued until 393 A.D., when they were declared "pagan cults and were banned. 4

5 From Olympia to Paris In 1892, in Paris, Pierre de Coubertin announced the re-establishment of the Olympic Games, reviving the ancient Olympic Games, appointing a committee in charge of organising them and creating an international movement. The IOC was created on 23 June 1894; the 1st Olympic Games of the modern era opened in Athens on 6 April 1896; and the Olympic Movement has not stopped growing ever since. 5

6 The International Olympic Committee (IOC) *206 NOCs The IOC is an international non-governmental notfor-profit organization, in the form of an association with the status of a legal person, recognised by the Swiss Federal Council. The object of the IOC is to fulfil the mission, role and responsibilities as assigned to it by the Olympic Charter, to govern and lead the Olympic Movement and to promote Olympism throughout the world. The goal of the Olympic Movement is to contribute to building a peaceful and better world through sport. 6

7 The Olympic Charter Codification of Fundamental Principles of Olympism, Rules and Bye-Laws adopted by the IOC. Governs organisation, action and operation of the Olympic Movement. Sets forth the conditions for the celebration of the Olympic Games. Defines main reciprocal rights and obligations of the main constituents of the Olympic Movement: Athletes, IOC, IFs, NOCs, OCOGs and others - All of which are required to comply with the Olympic Charter. 7

8 From a candidature until the delivery of the Olympic Games 8

9 From candidature to election Approx. 2 years City s candidature and election Olympic Games preparation, organization and delivery Approx. 7 years Approx. 10 years 9

10 Candidature to host the Olympic Games Candidature file: Provide answers to IOC s questionnaire by explaining the city s Olympic Games project: City s vision and motivations for hosting the Games Games concept and venues plan Legacy and post-games use of venues Governance and financing model (public-private) Legal framework 10

11 Candidature to host the Olympic Games Guarantees: Ensure delivery by securing legal commitments from authorities and private entities: Compliance with Olympic Charter Security Finance Venues Accommodation Sustainability Immigration, customs, taxes Marketing 11

12 Host City Contract Standard contract with legal, technical and operational requirements. IOC entrusts the organization of the Olympic Games: o Host City o National Olympic Committee o Organising Committee Franchise like model Continuous update Seven years of preparation Paralympic Games. 12

13 Olympic Games preparation Contribution of the IOC to the success of the Olympic Games: 1.7bn USD for the 2024 Olympic Games consisting of: o Broadcast-related revenues o Marketing-related revenues (Cash & VIK) Host Broadcaster operations Transfer of knowledge 13

14 Operational requirements Key Olympic Venues Test Events Olympic Village(s) Supplementary accommodation System of transport Services to support broadcasters and other media Protection of the Olympic brand and IP rights Services to support Olympic Marketing Partners Accreditation services Ticketing programme Technology services Energy supply Insurance coverage Opening and Closing Ceremonies Medals Medical and health services Anti-doping controls, Olympic torch relay Programme of cultural events Look of the Games 14

15 (2) The Olympic Properties

16 Olympic Charter Rule 7(2): The Olympic Games are the exclusive property of the IOC which owns all rights relating thereto, in particular, and without limitation, all rights relating to (i) the organisation, exploitation and marketing of the Olympic Games, (ii) authorizing the capture of still and moving images of the Olympic Games for use by the media, (iii) registration of audiovisual recordings of the Olympic Games, and (iv) the broadcasting, transmission, retransmission, reproduction, display, dissemination, making available or otherwise communicating to the public, by any means now known or to be developed in the future, works or signals embodying audiovisual registrations or recordings of the Olympic Games. 16

17 Olympic Charter Rule 7(4): The Olympic symbol, flag, motto, anthem, identifications (including but not limited to Olympic Games and Games of the Olympiad ), designations, emblems, flame and torches, as defined in Rules 8-14 below, and any other musical works, audio-visual works or other creative works or artefacts commissioned in connection with the Olympic Games by the IOC, the NOCs and/or the OCOGs, may, for convenience, be collectively or individually referred to as Olympic properties. All rights to the Olympic properties, as well as all rights to the use thereof, belong exclusively to the IOC, including but not limited to the use for any profit-making, commercial or advertising purposes. The IOC may license all or part of its rights on terms and conditions set forth by the IOC Executive Board. 17

18 Host City Contract Section 41(a): The City, the NOC and the OCOG acknowledge and agree that the Games and all events organised by the City, the NOC and/or the OCOG in connection therewith including without limitation, all events included the Programme of the Games (as defined in Section 33 above) and all Ceremonies (as defined in Section 37 above) - are the exclusive property of the IOC and that the IOC owns all rights and data relating thereto, throughout the world and in perpetuity. Such exclusive rights of the IOC shall include in particular all Intellectual Property Rights (as defined below) in and to the Games and all goodwill associated therewith, as well as all other rights, titles and interest relating to the planning, organising, financing and staging of the Games, including the Games Broadcast, Coverage and Exhibition (as defined in Section 54a below) and any other form of exploitation, recording, representation, marketing, reproduction, access and dissemination thereof by any means or mechanism whatsoever, whether now existing or developed in the future. 18

19 Host City Contract Section 41(c): The IOC may, in its sole discretion, assign, license or otherwise convey, on an exclusive or nonexclusive basis, all or any part of the rights and interests referred to in Section 41a above, or any title or benefit that the IOC derives therefrom, to the OCOG for the duration of this Contract and for the purposes of the planning, organising, financing and staging of the Games. Any such conveyance of rights, titles or interests shall be conditional at all times upon the OCOG s full compliance with this Contract and in particular the IOC s satisfaction with the protection implemented pursuant to Section 41b above. The IOC reserves the right to revoke any assignment, licence, authorisation or right conveyed pursuant to this Section 41c, at any time and without restrictions or any compensation of any kind due to the City, the NOC and/or the OCOG, should the City, the NOC and/or the OCOG not fulfil their obligations under this Contract. 19

20 Host City Contract Section 43(iii): all Intellectual Property Rights and other rights to the Games-related properties listed in Section 41d above are assigned to the IOC free of charge (i) effective not later than 31 December 2022 with respect to the Host Country and (ii) effective immediately from the outset (i.e. upon the creation of such properties) with respect to all territories outside the Host Country. With respect to copyright, such assignment includes assignment by way of a present assignment of future copyright. Subject to any rights of the IOC pursuant to this Contract, or any other agreement related to the Games, the OCOG, or any entity determined by the OCOG, shall be entitled to any royalties generated until 31 December 2022 from any copyright-protected Games-related Properties referred to in Section 41d above. 20

21 Olympic Properties - Scope Olympic Symbols Films / Videos Pictures / Photos Music / Audio Recordings Written Historical Archives Artefacts Numismatics Philately Coverage / Broadcast Games Results Publications Others 21

22 Thank You! International Olympic Committee - All rights reserved

23 IP and Sports Organizations Case Study: the IOC Parts 1 & 2 WIPO Regional Seminar on Intellectual Property and Sports for the Association of South East Asian Nations (ASEAN) Countries Carlos CASTRO, Senior Legal Counsel - Head of Copyright & Content Affairs Jakarta, Indonesia 27 November 2017

24 Agenda Part 1 1. The Olympic Games 2. The Olympic Properties Part 2 3. Exploitation 4. Protection 5. Relevance of IP 24

25 (3) Exploitation

26 How to make it work? 26

27 The Event: the Olympic Games More than a Sporting Event global appeal, all demographics positive values into all TV Homes A 17 day spectacular hours of Summer Games hours of Winter Games A Multi Sports extravaganza athletes in 26 Summer sports athletes in 7 Winter sports A National involvement A national pride to race for the Gold From local heroes to Olympic medalists 27

28 The Brand: the Olympic Rings ASSOCIATED with: - Global - Unity - Peace - Friendship - 5 continents 95% RECOGNITION Worldwide 93% RECOGNITION Worldwide *(Sochi 2014) Most correctly identified symbol worldwide Values Associated: - Global - Diversity - Excellence - Friendship - Heritage & Tradition - Inspirational - Optimistic - Peace - Respectful - Authentic * Contribute to building a better world through sport. 28

29 a CELEBRATING FRIENDSHIP STRIVING FOR EXCELLENCE DEMONSTRATING RESPECT 29

30 The Distribution: the Olympic Games Broadcast 30

31 Broadcast Partnership Overview Key Rights: Exclusive rights to broadcast the Games on awarded platforms and in granted languages and territory Rights to use Olympic Properties to promote the broadcast of the Games in territory Key Commitments: Guaranteed events of national interest the widest possible world-wide Olympic brand/values opportunities to Olympic Sponsors free-to-air exposure of Olympic Reach audience Promote Preferential advertising and sponsorship 31 31

32 RHBs INDIVIDUAL RHBs UNIONS, CONSORTIUMS & AGENCIES Hrvatska radiotelevizija / Croatian Radiotelevision 32 32

33 Olympic Games Broadcast History Milestones ( ) The first Olympic Games to be televised on a closed circuit system in and around the Olympic venues in Berlin The first Olympic Games to be broadcast with more than 500,000 viewers, mostly residing within a 50-mile radius of London, watch the 64 hours of Olympic programming The Olympic Games are televised live for the first time to 18 European countries, and only hours later in the United States, Canada and Japan For the first time, satellite broadcast coverage is used to relay images overseas The Games are broadcast live in colour for the first time. Slow-motion footage is also available live BERLIN LONDON ROME TOKYO MEXICO CITY 33

34 Olympic Games Broadcast History Milestones ( ) 21 st. Century Television and radio rights are acquired by 156 nations, with more than 2.5 billion people viewing the Games For the first time in Olympic broadcast history, a multi-tier TV structure is operated in several countries. Surveys of the US, the UK & Spain show an average of more than nine out of ten people tune in to the Games Viewers in 220 countries and territories watch an average of more than 12 hours of coverage each Over 1.5 billion people watched the Opening Ceremony, biggest ever watched TV event Nearly 350,000 total of hours broadcast Globally (200,000 hours for London 2012); estimated global audience of 5 billion - the largest ever audience for an Olympic games > LOS ANGELES BARCELONA ATHENS BEIJING RIO DE JANEIRO 34 34

35 Evolution of Broadcast Rights Revenues (in USD Billions) Historical exchange rates 35

36 The Content: the Olympic Multimedia Library IOC owns over a century of Olympic archives in the form of photos, audiovisual materials, historic documents and objects from the Olympic Museum s collection. Program launched in 1990s and completed in

37 The Sponsorship: the TOP Programme 37

38 TOP Programme Founded in 1985, TOP is the worldwide Olympic sponsorship programme that grants, to a limited number of companies, exclusive rights in a given product category to associate themselves with the IOC, the NOCs and the Olympic Games 38

39 Primary Sources of Revenues for the IOC 39

40 Allocation of Revenues amongst the Olympic Movement The IOC distributes over 90% of its revenues to organisations throughout the Olympic Movement to support the staging of the Olympic Games and to promote the worldwide development of sport. The IOC retains less than 10% of its revenue for the operational and administrative costs of governing the Olympic Movement. 40

41 (4) Protection

42 Means of Protection Nairobi Treaty / Trademark registrations IP Legislation / Olympic/Sports Legislation IP Enforcement / Technological Protection Measures 42

43 Nairobi Treaty Adopted in 1981 Administered by WIPO 52 Member States. Open to all Member States of WIPO, Paris Union (Paris Convention ), the United Nations or any of the UN s specialized Agencies. Limited to TM/Olympic Symbol 43

44 Olympic Legislation 44

45 Olympic / Sports Legislation National Law protecting the Olympic Properties: either specific law or national sports act. o Host countries of the Games: e.g. Australia, France, USA, Greece, Italy, China, United Kingdom, Russia and Brazil. o Non-host countries of the Games: e.g. Argentina, Czech Republic, Egypt, South Africa and Poland. 45

46 IOC s Internet Monitoring Programme IOC: copyright owner of the broadcast coverage of the Olympic Games. RHBs: exclusive licensees per media/territory. IOC s IMP: o Internet anti-piracy programme launched in the current decade. o Objective is to protect the rights of the IOC and its Partners o IOC technology driven: based on fingerprint technology solution and web crawling for automated quick take down 46

47 IOC s Internet Monitoring Program Operations 47

48 Others means of protection IOC Guidelines and Contracts/Licence agreements: o News Access Rules: Issued by IOC for non-rights Holders Separate rules for television and radio Rules may be adapted by territories o Social Media Guidelines 48

49 Ambush marketing Guerilla marketing / Parasitic marketing 49

50 Ambush marketing «A planned effort (campaign) by an organization to associate themselves indirectly with an event in order to commercially gain at least some of the recognition and benefits that are associated with being an official sponsor but without contributing financially to supporting the event» Sandler & Shani

51 Ambush marketing: infringement? 51

52 Ambush marketing: infringement? 52

53 Ambush marketing: infringement? 53

54 Ambush marketing: infringement? 54

55 Ambush Marketing: the London 2012 case London Olympic Games and Paralympic Games Act 2006 Infringement: general 2 (1) A person infringes the London Olympics association right if in the course of trade he uses in relation to goods or services any representation (of any kind) in a manner likely to suggest to the public that there is an association between the London Olympics and (a)the goods or services, or (b)a person who provides the goods or services. (2)Sub-paragraph (1) is subject to the provisions of this Schedule. 55

56 Ambush Marketing: the London 2012 case London Olympic Games and Paralympic Games Act 2006 Infringement: specific expressions 3 (1) For the purpose of considering whether a person has infringed the London Olympics association right a court may, in particular, take account of his use of a combination of expressions of a kind specified in subparagraph (2). (2) The combinations referred to in sub-paragraph (1) are combinations of (a)any of the expressions in the first group, with (b)any of the expressions in the second group or any of the other expressions in the first group. (3) The following expressions form the first group for the purposes of sub-paragraph (2) (a) games, (b) Two Thousand and Twelve, (c) 2012, and (d) twenty twelve. (4) The following expressions form the second group for the purposes of sub-paragraph (2) (a)gold, (b)silver, (c)bronze, (d)london, (e)medals, (f)sponsor, and (g)summer. 56

57 London 2012 NIKE Ad - London, Ohio, and London, Norway, and East London, South Africa, and Little London, Jamaica, and Small London, Nigeria and the London Hotel and London Road. 57

58 Ambush marketing: current definition Ambush Marketing means any advertising, communications, commercial identification, or other activity, undertaken by a person or business, that is an attempt to imply, or that results in, an unauthorised association with the Olympic Games, any Olympic entity, or the Olympic Movement. 58

59 Welcome Programme Relevance of IP

60 Relevance of IP: Most of the Olympic Properties are IP assets. Need for protecting both: the Olympic Movement s immaterial assets/rights, but also our partners rights. BROADCASTERS 60

61 Relevance of IP: Unauthorized uses/association are a threat the Olympic Movement/sports organizations main business model/main source of income: broadcast/television rights & marketing rights. GAMES 17 days Post-Games Pre-Games GAMES 17 days 61

62 Relevance of IP: Sales of Broadcast rights and Marketing rights are based on exclusivity of content / category and territory. If content is available outside authorised channels or if anyone can associate with the event / entity, potential value decreases. IP protection is paramount for maintaining the exclusivity and ensuring the corresponding incomes to fund sport events. 62

63 Thank You! International Olympic Committee - All rights reserved