Guarding the Brand: Intellectual Property Challenges in Sports

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Athletes and major sports organizations aren’t just participants in a game; they are powerful global brands that capture the hearts and attention of millions. Their influence extends far beyond the field, drawing fans into a world where every game, piece of merchandise and social media interaction matters.

With great influence comes great responsibility, especially when it comes to protecting intellectual property. Several recent cases have highlighted the importance of having a solid IP strategy to protect the rights of athletes and their organizations.

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Unauthorized Brand Association

A significant challenge for sports entities is unauthorized brand association. The 2024 Paris Olympic games just wrapped up with Team USA dominating the podium, winning 40 medals. The U.S. Olympic Committee also dominates its trademarks. The USOC commands some of the most exclusive and expensive sponsorship deals in the world. As a result, it is constantly enforcing its rights to prevent unauthorized use of its branding.

Most recently, Kevin Durant found himself in the middle of a lawsuit between Prime Hydration and the U.S. Olympic Committee. Prime Hydration, founded by influencer Logan Paul, is accused of using trademarked phrases to advertise its product in association with the Olympics.

Like the Olympic trademark, product placement and sponsorship exclusivity exist within sports teams. The NFL has a long-standing partnership with PepsiCo, meaning you won’t see coaches or players drinking Coca-Cola on the sidelines. However, in the fast-paced world of social media, it’s challenging to monitor and prevent every instance where an athlete might be featured using a product that hasn’t been officially endorsed or sponsored, especially in quick posts like those on TikTok.

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It requires careful management to navigate the potentially conflicting interests of the athletes, their leagues and the sponsors involved.

Trademark Dispute: The Reigning MVP vs. The Hall of Famer

Lamar Jackson is known for being one of the best dual-threat quarterbacks in the entire NFL, but Jackson is also well-known for his brand in today’s digital age. The reigning MVP’s attempt to trademark his number eight has caught headlines as he “battles” with Hall-of-Famer Troy Aikman. Aikman wore the number for the entirety of his career at UCLA as well as all 12 seasons with the Dallas Cowboys.

Jackson formally lodged a notice of opposition with the U.S. Patent and Trademark Office (USPTO) regarding the use of the number eight in marketing and branding. In essence, the proceeding argues that Aikman’s use of the number could potentially cause confusion with Jackson’s number.

With several prominent figures also associated with the number eight, from Aaron Rodgers as a New York Jet to the late Kobe Bryant, the challenge for Jackson will be arguing that his use of the number eight could be easily confused with those other prominent figures.

Copyright Issues

Contrary to popular belief, you can’t use music without paying for it. Copyright law, while sometimes perceived as complex, is fundamentally clear on this matter.

Music plays a pivotal role in enhancing the fan experience, just ask the Dallas Cowboys Cheerleaders or any MLB star with a signature walk-up song. Whether energizing a game-day atmosphere in the stadium or creating compelling promotional content, sports teams need proper licensing to use music in accordance with copyright law.

Kobalt Music represents songwriters, composers and publishers, managing the rights to a vast catalog of music, and they are now suing 14 NBA teams. Organizations including the Atlanta Hawks, Cleveland Cavaliers, Denver Nuggets and others are being accused of using music in promotional content on social media that is managed by Kobalt Music without the proper licensing. Among the artists named are John Legend, Jay-Z, Cardi Bee, Meek Mill and many others. Part of Kobalt’s role in representing these artists is ensuring that they are fairly compensated for their work.

It is important to recognize that not all legal actions in the realm of copyright are driven by genuine concern for protecting intellectual property. The sports industry, with its high visibility and substantial financial stakes, can attract opportunistic copyright trolls, sometimes referred to as the “ambulance chasers” of the IP field. These individuals or firms seek to exploit IP disputes for quick financial gains, rather than engaging in meaningful enforcement of copyright laws. Such practices can complicate the enforcement landscape and strain relationships between sports entities and their legal advisors.

Effective IP management involves not only securing appropriate licensing but also maintaining ethical standards in legal practice to protect the integrity of both the brands and the industry as a whole.

Sports teams, such as an NFL franchise, have dedicated legal teams to manage these demands, but with varying levels of clearance and oversight. With most teams having in house counsel, overarching league counsel, as well as outside legal counsel. some issues can slip through the cracks. Additionally, athletes often have their own sports lawyers and agents, who manage deals and contracts and balance their roles as both athletes and small business owners. Given the costly and time-consuming nature of thorough content review, it is practically impossible to vet every tweet or public statement, leading to occasional lapses that can result in legal disputes.

Protecting a sports brand, whether it be an organization or an individual athlete, can be a challenging endeavor. The process of obtaining even minimal protection can be costly, time-consuming and may yield uncertain or disadvantageous results for the brand. For this reason, it is paramount for these individuals and entities to remain vigilant in the competitive sports and legal landscape in which they operate.

Lindsay Jones

Lindsay Jones is a trademark, marketing and advertising attorney at Merchant & Gould, helping companies protect their creative assets and enforce them against unwanted third-party use and publication. Jones has a background in the sports and entertainment industry, securing and defending intellectual property rights. Lindsay advises on trademark infringement, copyright issues, and IP licensing aligning legal strategies with clients’ brand goals.

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