Ambush Marketing

Douglas J. WoodPartner

Reed Smith LLP

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

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

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

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

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

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)

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)

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

AMBUSHERS

Special Teams

Soccer European Championship 2000

Athletics World Championship 2001

What is allowed?

Best Media Markt ever:We will get the Title!

What is allowed?

There is only one attraction in 2006:Why don‘t you drive there?

What is allowed?

THE 2006 EXPERIENCE

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

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.”

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.

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

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

How did it work?

Despite huge efforts some teams run afoul

Logo on the helmet, duly covered

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!"

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 ...“

WHAT’S COMING UP?

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)

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

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)

London 2012

Tactics like this won’t be allowed in London.

CHINAAMBUSH MARKETING

2008 Beijing Olympics

• 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

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

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

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

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

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

Thank You