FIFA launches legal actions to protect World Cup brand
Reuters - Thursday 06 May 2010, 15:32
JOHANNESBURG - FIFA has launched 2,500
legal actions around the globe to protect its World Cup brand, a
senior official of football's governing body said on Thursday.
Mpumi Mazibuko, FIFA Rights Protection manager, said that
450 actions had been taken or were pending in South Africa
alone. Almost all concluded cases were settled out of court.
FIFA's defence of its brand is so stringent that officials
said street traders near stadiums who sell drinks that are not
manufactured by World Cup sponsors would have to decant them
into unbranded bottles.
The policies have been controversial here with accusations
FIFA has been heavy-handed in bringing legal action and that
local businesses will suffer because of the exclusivity awarded
to the World Cup's major corporate partners.
At a news conference called to defend the policy, FIFA
Marketing Director Thierry Weil said corporate partnerships were
essential to raise the almost $1.5 billion cost of the World
Cup, and the sponsors paid big money for exclusive rights.
"Without the commercial affiliates, FIFA would not be in a
position to run the event," he said.
Sibongile Mazibuko, World Cup director in the Johannesburg
City council, rejected repeated criticism that the informal
traders who traditionally sell food outside stadiums would not
benefit from the tournament.
But she said they would have to sell unbranded food, going
to the extent of decanting drinks into "neutral" plastic bottles
provided by the city. Similar programmes would be in place in
other World Cup cities, she said.
Mazibuko said the city had gone to great lengths to educate
traders on the rights protection laws and to ensure that food
sellers, known as "mamas" would make money from the World Cup.
"MAMAS" PROTECTED
They would not be allowed inside the stadium precinct, where
only corporate partners or pre-existing shops could operate, but
would have special facilities on the route into the arenas.
"We feel very strongly that those mamas who have actually
been selling at the stadiums should not be unnecessarily
affected by the exclusive zone," she said.
"While we understand the protection of the rights of FIFA,
we have a responsibility not to sacrifice our own informal
traders out of business because there is a tournament here," she
said.
Local food and curio sellers would also be able to operate
inside the fan parks where large screens will be set up to show
games away from the stadiums. But again, food must be unbranded.
Local authorities and FIFA took an audit over the last three
years of existing businesses around the stadiums and they will
be able to continue operating. But any new advertising by non
rights holders will have to be covered up during the World Cup,
officials said.
FIFA makes most of its money - which has to last until the
next World Cup in four years time - through selling television
rights and deals with commercial sponsors. More than 60 percent
of FIFA's 2007-2010 revenue of $3.2 billion comes from TV rights
and around 30 percent from commercial marketing.
Ticket revenue goes to the South African organising
committee.
Mpumi Mazibuko said South Africa had particularly strong
laws to protect intellectual properly and to punish "ambush
marketing" where non affiliated companies try to use the World
Cup brand.
"This is the first time the World Cup has been held in a
country with these laws," he said.
Last month, Kulula, a local low cost airline known for
humorous advertisements, agreed to withdraw its tongue-in-cheek
billboards after a legal letter from FIFA which was given wide
media coverage here.
The advertisement called Kulula the unofficial carrier of
the "You-know-what" and showed footballs, vuvuzela fan trumpets
and football players.
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