2012 Olympic Games: Taking Steps to Protect Official Sponsorship Rights

A wave of excitement has hit the UK, and the countdown has officially begun for the commencement of the 2012 Olympic and Parlympic Games. What fuels the event, of course, is sponsorship. Investment from sponsors creates substantial revenue which in turn helps to pay for the hefty costs. As London becomes a hub for creative advertising campaigns, marketing executives embark on associating their products and services with the Olympics in order to appeal to consumers.

From a legal and commercial standpoint, the danger lies in the fact that not all of these advertisers are official sponsors of the Games. 'Ambush marketing' is the term coined for the attempt by non-sponsoring businesses to take advantage of the enthusiasm surrounding the event by suggesting links to the Olympics and Paralympics. These marketers are gaining an unfair competitive advantage, paying no sponsorship licensing fees and damaging the integrity of both official sponsors who have paid for the privilege of association and the Olympics and Paralympics Associations themselves.

In a bid to prevent ambush marketing at the Games, Parliament has introduced a new Bill to implement certain provisions of the London Olympic Games and Paralympic Games Act 2006. Broadly, the Bill attempts to prevent businesses from unlawfully associating themselves with the event. Both police and, primarily, enforcement officers designated by the Olympic Delivery Authority will enforce the rules. In instances of persistent offending, enforcement officers can remove or destroy offending items and, in cases of serious ambush-marketing, advertisers may find themselves being prosecuted through the criminal courts. Significantly, the Bill also raises the maximum penalty for illegally selling tickets for the Games from £5000 to £20,000.

We are currently awaiting a date for the second reading of the Bill. In the meantime, the UK, Scottish and Welsh governments have issued a joint consultation on ambush marketing and other issues arising from the Games, which is due to end on 30 May 2011.