Cashing in on 2010, legally

The appointment of a new chief justice, the ongoing Western Cape Judge President John Hlophe saga and a number of high-profile court cases may have dominated the legal headlines in recent weeks, but a dispute over a key-ring has served notice of things to come in the build-up to the 2010 World Cup.

Fifa is threatening to take a local businessman to court. The Cape Town entrepreneur registered a soccer-themed key-holder design with the department of trade and industry, which affords him the sole right to use the design for 15 years. But the global soccer-governing body has accused him of ambush marketing and is insisting the registration be cancelled.

It’s not the first case of its kind. Fifa has also tackled retail giant Metcash, which distributed lollipops labelled “Astor 2010 pops” and Eastwoods Tavern, a Pretoria pub close to Loftus Versfeld Stadium, was warned for displaying signs bearing the phrase “World Cup 2010”.

Fifa argues that major tournaments have been “ambush marketing” magnets with companies and individuals exploiting sponsored events without paying for the right to do so, either by suggesting an official association or by deliberately intruding on an event. Examples may include handing out product samples to spectators at stadiums, using official logos in marketing or dressing spectators in the clothing brands of the sponsors’ rivals.

This was a major issue during the previous World Cup in Germany. About 3 700 ambush marketing cases were reported in the build-up to the tournament. Of those it prosecuted, Fifa was successful in more than 90% of the cases.

In one memorable incident, Lufthansa painted soccer ball markings on the nose cones of its aircraft and added a new fleet code, LH06. There was no outright mention of the World Cup but Fifa took the case to court to represent its official airline, Emirates. And, not surprisingly, it won.

South Africa has declared the tournament an event protected by ambush marketing laws, meaning the tough provisions of this act are now in force until December 2010 (six months after the event).

Paul Bannister, the acting CEO of the International Marketing Council, concedes that some people are shying away from 2010 business opportunities because they’re concerned about Fifa and ambush marketing. But he says there is still plenty of scope to benefit from the event. “For example, I’ve had South African scarves made as promotional items, particularly because this is a winter World Cup. Scarves are not Fifa property, so it’s fair game. We need to be creative in order to benefit as much as we can within the boundaries,” he said.