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Sports Merchandising Law
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Flashcards
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Patent
A patent is a form of intellectual property that gives its owner the legal right to exclude others from making, using, or selling an invention for a limited period of years. In terms of sports merchandising, a patent might cover new technology in sports equipment that companies wish to exclusively produce and sell.
Licensing Agreement
A licensing agreement is a legal contract between a trademark or copyright owner (licensor) and another party (licensee), allowing the licensee to use the mark or copyrighted work in exchange for a royalty fee. In sports, licensing agreements are crucial for manufacturing and selling team-branded merchandise.
Counterfeit Goods
Counterfeit goods are imitation products that are sold under another company's brand name without their permission. In sports merchandising, sales of counterfeit goods infringe on intellectual property rights and can damage the reputation of teams and brands.
Ambush Marketing
Ambush marketing occurs when a company not officially sponsoring an event uses various tactics to associate itself with that event, thereby capitalizing on the event's popularity without paying sponsorship fees. This is a legal issue in the sports merchandising realm, as it can mislead consumers and harm official sponsorships.
Trademark
A trademark is a recognizable sign, design, or expression which identifies products or services of a particular source from those of others. In sports merchandising, trademarks protect team logos, names, and mascots, ensuring that only those licensed are legally permitted to produce and sell merchandise bearing these marks.
Non-Disclosure Agreement (NDA)
A Non-Disclosure Agreement is a legal contract between at least two parties that outlines confidential material or information that the parties wish to share with one another but restrict from third parties. In sports merchandising, NDAs may be used when discussing new merchandise designs or marketing strategies.
Cease and Desist Letter
A cease and desist letter is a document sent to an individual or business to stop purportedly illegal activities and not to restart them. In the context of sports merchandising, these letters are a step towards legal action against unauthorized production or sale of merchandise.
Counterfeiting
Counterfeiting is the creation and/or distribution of unauthorized replicas designed to be taken as authentic. In the context of sports merchandising, counterfeiting affects the sale of genuine merchandise and infringes on trademark rights.
Merchandise License
A merchandise license is a legal document granting the right to use a particular intellectual property in the creation and sale of goods. This is common in sports for companies seeking to produce merchandise featuring team logos, colors, and trademarks.
Endorsement Deals
Endorsement deals are agreements where an athlete or coach agrees to publicly recommend or approve of a product in exchange for compensation. These deals affect sports merchandising by leveraging the popularity of sports figures to drive sales for featured merchandise.
Sponsorship Agreement
A sponsorship agreement is a contract where a sponsor provides support (financial or otherwise) to an event, team, or individual in exchange for advertising and promotion. Within sports merchandising, such agreements may include the creation and sale of co-branded merchandise.
Right of Publicity
The right of publicity prevents unauthorized commercial use of an individual's name, likeness, or other identifiable characteristics. In sports merchandising, an athlete's right of publicity must be considered when using their image or persona on products.
Passing Off
Passing off is a common law tort which occurs when one person misrepresents their goods or services as those of another. In sports merchandising, passing off can occur when counterfeit or unauthorized merchandise is presented as officially licensed.
Infringement
Infringement is the violation of a law or a right. Within sports merchandising law, infringement typically involves unauthorized use of trademarks, patents, or designs on merchandise, which can lead to legal penalties.
Royalty Fee
A royalty fee is a payment made by one party (the licensee) to another (the licensor) for the use of a particular right, such as a trademark or copyrighted material. In sports merchandising, royalty fees are paid for the right to produce and sell items like jerseys and fan gear.
Merchandising Rights
Merchandising rights refer to the specific rights to manufacture and sell products featuring a particular brand, character, or symbol. In sports, these rights are often sold or licensed to companies that produce fan merchandise like apparel and accessories.
Permitted Use
Permitted use is a term in licensing agreements that specifies how a licensee can use the licensed property. In sports merchandising, this would determine how and in what forms a team's logos or trademarks can appear on products.
Intellectual Property (IP) Law
Intellectual Property Law is the area of law that deals with the rights associated with creative inventions, designs, and artistic works. IP law is central to sports merchandising as it dictates the control and distribution of merchandise featuring logos, designs, and other branding elements.
Exclusive License
An exclusive license is a licensing agreement where the licensee is given the sole right to produce and sell merchandise within a certain category. In sports merchandising, this prevents other companies from making or selling the same type of branded products.
Copyright
Copyright is a legal right granted by the law of a country to the creator of original works, which allows them the exclusive right to use their work for a certain time period. In sports merchandising, copyright may protect original designs of sports apparel, equipment, or promotional material.
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