ONE OF THE WORLD’S MOST LUCRATIVE INDUSTRIES – THE TRADE IN COUNTERFEIT SPORTS GOODS

Brands are critical for creating business value, and the sports business is no exception. Strong brands command customer loyalty and premium prices, constituting valuable assets that drive company revenue and growth. They are central to many sports business transactions, especially sponsorship deals and product merchandising. And at the heart of branding lie trade marks.1 One interesting point to highlight from the World Intellectual Property Organisation (WIPO) note on the interaction between Sport and Branding is the notion that trade marks “represent, if successful, a promise kept”. If unsuccessful therefore it serves to follow that a customer experiences a promise broken which is rarely perceived as a positive attribute.

When applied to trade marks that broken promise is most likely to manifest itself in the form of defective or counterfeit goods. If goods bearing a trade mark are not genuine, ie. they do not adhere to the brand values associated with that promise they arguably not only undermine the capability of the trade mark to function as a trade mark but can also damage the reputation of the brand owner in question. If trade marks act as a guarantee of origin and embody a set of brand values that for example might denote characteristics such as high quality or technological superiority, conversely, counterfeit goods represent the opposite end of the spectrum. They are the broken promise of a trade mark and associated brand values.

This feature examines the threats facing Intellectual Property Rights (IPRs) Holders within the Sports industry from counterfeit goods and piracy. A related article (available here), explores the extent of the problem in China, and the measures that Rights Holders can take to counteract the economic and social impact of counterfeiting. For more see...https://www.lawinsport.com/articles/item/one-of-the-world-s-most-lucrative-industries-the-trade-in-counterfeit-sport-goods?category_id=112

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