Ambush Marketing: a positive or negative custom?

01-Aug-2011 Companies invest heavily in sporting events to secure marketing exclusivity for those events. It is common though for competitors to market a product or brand by forming an informal association between it and an event; a custom known as “Ambush Marketing”. Some say that Ambush Marketing should be prevented to protect what can be the sponsor’s multi-million pound investment. Others argue that this custom provides competitors with a prime opportunity to advertise to the worldwide audience of sport and encourages competition.

Ambush Marketing can occur by association or intrusion. The common purpose of both approaches is that the non-sponsor comes across as an official sponsor. Association involves the use of events’ logos and intrusion - the use of media and spectators. Both types of ambushing were adopted by Nike at the 1996 Olympic Games. Nike purchased billboard space near the Olympic venues and built a Nike Village next to the athletes’ village. As a result, Nike ambushed the Games official sponsor, Reebok.

Legislation, namely the Olympic Symbol etc (Protection) Act 1995 (“the 1995 Act”) and the London Olympic Games and Paralympic Games Act 2006 (“the 2006 Act”), have therefore been introduced to act as a deterrent to such behaviour for the 2012 Olympic Games in London. The official view is entirely in the sponsors’ camp.

The 1995 Act gives exclusive rights to use the Olympic symbol and motto, and protected words such as “Olympics”. An infringing act would also occur if similar items were used which created in the public mind an association with the Olympics.

As part of the 2006 Act, a court may consider whether the use of a combination of expressions may form associations to the 2012 Olympic Games in London. Expressions are grouped within the Act as part of Group 1 or Group 2 and include “games” and “London” respectively.

Ambush Marketing can, however, have a positive impact. It can promote competition and drive prices down for consumers, and increase consumers’ awareness of products and brands available to them. It also ensures that a company’s ability to break into new commercial markets is not restricted.

The opportunities provided to non official sponsors are very constrained by the 2 Acts referred to above.

To understand what can be done, or how to prevent Ambush Marketing, contact Ian Morris or a member of the Intellectual Property Team.

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