1.02 legal issues pertaining to sports and entertainment management.

Discuss legal issues associated with marketing products. (cont..)  Patents are granted for an invention or an improvement on a product. Patents are granted for a limited period of time.  Trademarks and service marks. A word, phrase, symbol, or design that identifies and distinguishes the company from others. Granted legal protection through the United States Patent and Trademark Office. TMSM

Discuss legal issues associated with marketing products. (cont..)  Copyrights are granted to, and retained by, creators of: Literary works (novels, poems, newspapers). Artistic works (photography, paintings). Broadcasts (television, radio, Internet). Films. Original musical composition.

Discuss legal issues associated with marketing products. (cont..)  The Lanham Trademark Act is designed to protect trademarks, certification marks, and collective marks.  Teams or leagues such as the NFL, NBA, and Duke University own their logos.

Discuss legal issues associated with marketing products. (cont..)  The owners of logos can license others (licensees) to use their logo to produce and sell merchandise.  Billions of dollars of merchandise are sold without licensing.  Trademark infringement is using a trademark without authorization.  Licensing is a lucrative business venture for licensors because they are able to make maximum revenue with minimum effort.

Sherman Antitrust Act  Federal legislation to protect industries from having one competitor that discourages competition within the industry. NO MONOPOLIES  MLB is the only branch of sports identified as exempt from the Sherman Antitrust Act. Baseball teams cannot relocate without approval from MLB. Other sports teams do not have to have permission.

Broadcasting Rules  Sports Broadcasting Act of 1961 allows leagues to pool their broadcasting rights and sell them as a package to television networks.  Blackouts League can block its broadcast in the home territory if the game is not a sell-out. Meant to encourage ticket sales but are often a source of frustration for fans. Pressure on sport/event marketers working to sell out games and keep public relations positive.

Celebrity Rights  Right of privacy celebrity can sue for invasion of privacy when his/her seclusion has been intruded upon, when s/he has been given an unreasonable amount of publicity, or when s/he has been placed in a false light. Tabloids

Celebrity Rights (cont’d)  Right of publicity protects a person from the unauthorized use of his/ her name and likeness for financial gain.

Labor relations  National Labor Relations Act all U.S. workers the right to organize into unions to collectively bargain and strike.  Collective bargaining employees join together as a single unit to negotiate with management. Gives players the right to organize, use the agent of choice and protect themselves.  In the 1970s, athletes in the major leagues began forming unions called players’ associations.  Players’ associations and leagues can’t reach agreement? Could result in: player strike owner lockout.

Sponsor contracts Exclusivity Sponsors usually insist on being the only ones in their particular category of goods or services. Option to renew allows the sponsor to extend the agreement after the contract expires Right of first refusal event organizers will allow the sponsor the opportunity to renew before offering the contract to any other sponsors

Television contracts Negotiations with broadcasters are very complex due to the high interest in sport events and the increase in satellite, cable, and Internet options for viewing them.

Venue and personnel  Venue contracts usually include: lease rate along with provisions for security and concession.  Venue contracts with personnel include: a detailed list of responsibilities, begin and end dates for work, payment schedules, and tax withholding. These agreements also specify any provisions for changes in the contract, such as an extension or an increase in responsibilities.