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Send  Share  RSS  Twitter  29 Nov 2009

2010 WORLD CUP: Business As Usual For Local Business


Recent Western Cape Business News

In response to questions from the media regarding Fifa’s Rights Protection Programme, the City of Cape Town has clarified the position of local businesses regarding the commercial exploitation of the 2010 Fifa World Cup Final Draw on 4 December.

The City says it recognises the importance of ensuring that small businesses can connect to World Cup-related business opportunities without infringing on the intellectual property rights of Fifa’s sponsors, partners and affiliates of the World Cup.

It is universally accepted that sponsorships are the lifeblood of events like the World Cup. Sponsors therefore need to be given fair exposure and be protected against exploitation. It follows that if an event organiser can’t secure the support of its sponsors, the event will be at risk.

In terms of the Host City Agreement between Fifa and the City of Cape Town, the City is obliged to implement the Rights Protection Programme.

Rights holders pay large sums of money to be able to use the event for marketing purposes, so it is logical that non-rights holders who attempt ‘ambush marketing’ should be prevented from doing so.

Ambush marketing occurs in two ways: by way of association, in which the marketer misleads the public into thinking that it is associated with the event; or by intrusion, giving its own brand exposure by riding on the back of the publicity attracted by the event. This is unfair as the ambush marketer seeks to benefit financially from the World Cup without giving any financial support.

Only official sponsors, licensees and partners of the World Cup are allowed to suggest a connection with the event.

For the City of Cape Town it’s ‘business as usual’, but the 2010 by-law will ensure that the rights of sponsors are carefully protected in the so-called ‘exclusion zones’.

Businesses will be able to go about their normal business, but there can be no change in advertising from the visual audit carried out in advance by the City. Any business that contravenes the by-law will be prosecuted and the ambush material taken down. Rights holders also have the right to claim damages.

Non-rights holders may not:

  • Make unauthorised use of a sponsored event’s trademarks or logos.

  • Place advertisements on the outskirts of a stadium or fan park at which a sponsored event is taking place.

  • Use an aircraft to overfly an event with an advertising banner in tow.

  • Run advertisements referring to a sponsored event.

  • Run a promotional competition referring to the sponsored event.

  • Arrange for a group of spectators to wear clothing that promotes a product as this implies an association with the event.

  • Hand out unofficial programmes and sell merchandise inside and outside venues.

  • Set up new business activities in Controlled Access Sites without prior consultation with Fifa.

Non-rights holders may:

  • Conduct business as usual and sell their products.

  • Advertise their existing logo on the company’s premises.

  • Sell local and regional specialities such as food and drinks.

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