INTELLECTUAL PROPERTY AND BROADCASTING RIGHTS ININTERNATIONAL SPORTS

Arunima Sen,

Sister Nivedita University, Kolkata

Sports have been an inalienable part of entertainment for the global masses since time immemorial. From cricket, football, and tennis, there are millions of fans for every sport. Sports plays a rather important role in bringing people together and instilling in them a sense of belonging. The international sports industry, as we know it today, is a $350 million industry.  A large part of this magnitude must be attributed to the importance of broadcasting and intellectual property rights that are possessed by the sports sector. With the advancement of technology, there is a higher probability of violation of intellectual property rights, leading to the exploitation of broadcasting rights as well. On the one hand, broadcasters pay exponential sums to the sports sector to secure exclusive rights to broadcast sports competitions, but on the other hand, many websites illegally stream content online. The advent of high-speed internet and portable devices has rendered it more challenging for the sports industry. The rights of broadcasters are infringed and even though such illegal streaming platforms can be taken down with little to no difficulty, more such platforms can be set up just as easily. For the sports sector, the sale of broadcasting rights is the main source of revenue that enables them to organize sports events across the world and the overall development of sports. Let’s elaborate further on the broadcasting and intellectual property rights in the international sports industry and potential solutions to overcome the issues faced by it.

Broadcasting rights in sport

Sports and media are closely related to each other. Television and media companies pay massive amounts to purchase exclusive broadcasting rights for broadcasting sports events, which, in turn, is the primary source of revenue for sports organizations which allows them to contribute to the welfare of sports as a whole, redevelopment of stadiums and organizing sports events across the world. the sums received by the sports sector from media companies by selling their exclusive broadcasting rights enable them to spend on the infrastructure needed to broadcast sports events to fans all over the world. Broadcasters thus have certain rights that come with their relationship with sports companies. broadcasters have rights to authorize rebroadcasting, recording, reproduction, and communication of their broadcasts to the public for 20 years, as per the International Convention for the Protection of Performers, Producers of Phonograms and Broadcasting Organizations (Rome Convention), of 1961. Some of the rights possessed by the broadcasters are as follows:

→    Recognition of entrepreneurial efforts of broadcasting organizations

→    Rewarding their contribution to information and culture

→    Protection of investments in broadcasting sports events

However, despite these existing rights, there is a need to update the broadcasting rights in the international sports industry to keep up with the rapidly evolving technology. New rights which effectively safeguard the rights of broadcasters are required. 

The international sports industry has now become a multi-million-dollar industry. Also, due to the close relationship between sports authorities and media outlets, there is an ever-increasing need for the protection of intellectual property rights. Although the advancement of technology has enabled the global masses to watch sporting events from any part of the world, it does have its downsides as well. This has made sports events more susceptible to online illegal streaming and piracy. Broadcasting companies have unfortunately become a target for unlawful streaming online. This severely undermines the rights of broadcasters as well as the value of their investments in purchasing exclusive media coverage from sports organizations. Despite there being efforts towards taking down illegal streaming platforms for better protection of broadcasting rights, they haven’t been successful in completely eradicating the infringement of broadcasters’ rights. Broadcasters & sports authorities have also put in work to appeal to younger audiences through media by offering sports coverage in a variety of formats. 

Intellectual Property Rights in the International Sports Industry

As time goes on, the potential risk of intellectual property rights being violated increases. This is mainly due to the developments in technology which have changed the way people view content, including sports. As mentioned above, illegal streaming websites are growing by the day and they are severely impacting the intellectual property rights of broadcasting companies. moreover, these sites make gains from the large number of viewers thus making it all the more difficult to shut down.

Another pertinent point to note is that the media companies that purchase exclusive broadcasting rights from sports authorities have to incur significant losses due to the diminished quality of their content when it is being streamed illegally on unauthorized websites. When they purchase exclusive footage from the sports companies, the broadcasting companies offer a host of many other benefits to viewers along with it. Features such as the availability of a variety of formats, the use of modern technology, high-tech cameras, and sophisticated graphical analysis are some of the added advantages that come with such exclusive rights. To avail of these features, the people need to pay money for it, thus generating revenue for broadcasting companies. However, when unauthorized online platforms stream such content for free, it dents the financial security of broadcasting companies since it poses a threat to one of their main sources of revenue. Additionally, it also injures the reputation of broadcasting companies by compromising the quality of content offered by them. This brings us to another major problem faced by media outlets due to infringement of intellectual property rights: counterfeiting. According to a study conducted by the European Union Intellectual Property Office (EUIPO), 6.5% of sales and $560 million are lost by the international sports industry annually as a consequence of counterfeiting. 

Broadcasters pay exponential amounts of money to secure broadcasting rights for sports competitions. These sums are greatly responsible for revenue generation for the sports sector. The investment of broadcasting companies for the purchase of exclusive media rights is directly dependent on the protection of intellectual property rights. Thus, the infringement of intellectual property rights, or media rights in particular poses a threat to this source of revenue for the sports sector. Financing of sports companies is of utmost importance for the functioning of the sports sector which is primarily due to the investments by broadcasters. According to a study conducted by the European Commission in 2011, the sports sector receives approximately EUD 500 million through the sale of exclusive broadcasting rights. investment in grassroots sports is important for sports companies as well as sports itself. Thus, it is essential to protect this source of revenue for the security of the sports industry. Without the investment by broadcasters, sports companies would be rendered without financing resulting in significant losses.

Potential Solutions

Firstly, for the protection of intellectual property and broadcasting rights, the countries that host sporting events can come up with creative solutions for doing so. They could educate people on intellectual property rights, develop a system in which they are efficiently enforced,

and ensure that none of the involved parties’ rights are infringed. Thus, the countries which organize sporting events (e.g. Olympics) should bear in mind the intellectual property rights and other aspects related to it. They should formulate their organization while considering its implications for all the stakeholders. 

Secondly, there should be an effective legal framework for intellectual property rights that prioritizes intellectual property rights, particularly in the sports industry. There can also be an effort towards seeking active fan engagement in the promotion of sports events through merchandise and social media which could turn into an additional source of revenue for the stakeholders in the sports industry. 

Thirdly, the legal framework should be created in a way such that it provides a way to monetize the intangible benefits that result from sports events. 

Countries need to work together and bring a universal solution for a uniform set of rules for the protection of intellectual property rights and also take action in cases of violation. Counties could also form committees that would assist the stakeholders in the sports industry in the enforcement of intellectual property rights. they must make sure that their respective legal systems offer a decent foundation to further build upon intellectual property rights, especially in the sports industry. Apart from regular sporting events, sports authorities could organize awareness programs to sensitize the masses about the same. The management and enforcement of intellectual property rights should be such that the fans and masses know more about those rights and act by them.

CONCLUSION

The sports industry and broadcasting & intellectual property rights are intertwined with one another. Sports are a source of more than just entertainment. They bring people together and have an emotional appeal among the masses. It is thus crucial to protect the rights in the sports industry for the furtherance of sports as a whole. Sports have the potential to enhance the global standing of a nation and it should be protected from any unfair treatment. An effective strategy must be adopted for the competent implementation of intellectual property rights. cooperation and collaboration among nations in matters of sports-related intellectual property rights is the need of the hour. There needs to be an equal effort on the part of all the stakeholders for visible results. Technological tools must also be developed in large measure for combating the illegal streaming platforms that are one of the main violators of the broadcasting rights of media companies.

Effective ideas should be brought about in the sustainable development of sports across the globe. 

REFERENCES

1. Mark Lichtenhein, Intellectual Property Rights: driving global sports, WIPO

MAGAZINE                (08                July,                2024,                01:00                PM),

https://www.wipo.int/wipo_magazine/en/2019/02/article_0001.html

2. Jacques de Werra, Reference Guide to Sustaining Sport and its Development through

 Intellectual       Property      Rights,      WORLD      INTELLECTUAL      PROPERTY

ORGANISATION             (08              July,              2024,              02:30              PM),

https://www.wipo.int/documents/d/sports/guide-sustaining-sport-ipr-2022

3. Broadcasting & Media Rights in Sport, WORLD INTELLECTUAL PROPERTY

ORGANISATION             (08              July,              2024,              03:00              PM),

https://www.wipo.int/en/web/sports/broadcasting

*Kindly note that the name of the author in the above article is unknown.