Team Trademarks in Sports
In the world of sports merchandise, trademarks are valuable assets, leading to consumer confidence, trust, brand establishment, and loyalty. These trademarks serve as powerful symbols, enabling customers to identify and connect with their teams and products on a deeper level (Sport Trademarks: Everything You Need to Know). Trademarks come in various forms, from visual symbols like Nike's iconic swoosh to auditory cues or even player nicknames. Thus, trademarks hold considerable influence, shaping consumer perceptions and brand protection, and safeguarding authenticity within the sports merchandise realm.
Trademarks are powerful tools, allowing customers to recognize and trust products associated with specific brands (Sports Trademarks: Everything You Need to Know). Legal statutes like the Lanham Act and the Uniform Domain-Name Dispute-Resolution Policy (UDRP) provide the necessary framework for protecting these trademarks, which can consist of team logos, mascots, and other identifying marks. The Lanham Act provides civil liability for trademark infringement and false advertising in the case of sports merchandising. The strategic display of trademarks at sporting events not only enhances brand visibility but also drives sales by appealing to fans, with the industry predicted to grow to approximately $44 billion by 2027.
Team names, logos and even specific player names and nicknames are some of the most powerful and widely recognized trademarks in the sports merchandise world. These can include famous logos like the Dallas Cowboys blue star which represents Texas since it is known as the Lone Star state. Another example is Jeremy Lin referring to his short era of dominance in the NBA as “Linsanity.” Trademarked items, displaying the logos, mascots, or names of sports teams, are more than just clothing as they are a display of loyalty for fans . Greg Berkowitz, the Director of Trademarks and Licensing for the University of Maryland, explained to us the famous logos and mascot that the University of Maryland has trademarked, which Maryland uses to generate revenue in licensing deals with major manufacturers.
Shameeka Quallo is the general counsel for the Washington Spirit. She explained to us the Washington Spirits' approach to trademark protection, why they chose to trademark certain slogans.
When fans purchase team merchandise, they are not just buying a product, they are investing in a piece of their team's culture and history. Mitchell & Ness, a renowned producer of nostalgic sports apparel, indicates that "fans resonate with the authenticity and heritage" associated with their products, emphasizing how important it is for customers to feel a genuine connection to the brands they support (Mitchell & Ness). In our conversation with Eli Kumekpor, the CEO of Mitchell and Ness, he referenced the importance of trademarks and team apparel in the world of sports as they are more than a logo; they are also a fashion statement and pop culture reference. Fanatics, which owns Mitchell and Ness, is a leading sports merchandise retailer that sells officially licensed products from the major U.S. sports leagues (NBA, NFL, etc.), ensuring that fans receive high-quality, authentic gear.
Berkowitz also explained to us the importance of licensing agreements in the production and sale of sports merchandise. Through these agreements, owners of sports trademarks authorize sports merchandise manufacturers and seller the right to use those team logos and trademarks, leading to the lawful production and distribution of merchandise. Under Armour is a long-standing partner with the University of Maryland’s sports programs. In our interview with Greg Berkowitz, he described working with a major industry leader like Under Armour.
As Greg Berkowitz explained, licensing agreements address key issues such as royalty rates, exclusivity, and rights. When entering into these agreements, teams and organizations can control the quality and distribution of their branded products, protecting their intellectual property while generating revenue through royalties and sales.
The protection of trademarks in sports is crucial to deter unauthorized use, and protect and maintain revenue streams as the sale of jerseys and merchandise with team branding results in significant revenues for teams. Sports teams invest significant resources into building and marketing their brand which involves the significant use of trademarks, from designing iconic logos like Real Madrid’s logo which is recognized worldwide to crafting memorable slogans like “Americas Team” when referring to the Dallas Cowboys. When these trademarks are infringed upon, not only does it impact revenue through lost sales, but it can also damage the brand image if the logos or other intellectual property is used in ways.
In sports merchandising, counterfeit merchandise poses a significant threat to brand integrity within the sports merchandise industry, as mentioned by Fanatics in their commitment to brand protection (Fanatics). Knockoff and replicated products infringe on authentic merchandise by mimicking merchandise and deceiving fans with identical or similar designs. In our interview with Eli Kumekpor, we discussed the growing concern of brands as these fake products continue to rise in popularity, and whether true fans might not support these counterfeit goods, as it is looked down upon in the fashion industry. Fanatics also acknowledges the detrimental impact of counterfeit goods on brand reputation and consumer trust in their brand protection statement, emphasizing the need for proactive measures to combat this issue (Fanatics). Through legal action targeting trademark counterfeiting and infringement, Fanatics looks to safeguard its trademarks and deter these activities.
A similar endeavor to counterfeiting can be the misuse of a team or players' trademarks and likeness, as discussed with Greg Berkowitz, in the sense of local businesses and bars using the University of Maryland’s brand to promote their businesses, which can also taint brand image. An example of this could include a bar using the university's logos to promote specials for upcoming events like March Madness, which might not align with an academic institution’s values.
References:
1. Glaus, Abby R. “The Intersection of Trademark Law, Athletes, and Money: A "Three-Peat®." Marquette Law Scholarly Commons, 20 May 2022,
https://scholarship.law.marquette.edu/cgi/viewcontent.cgi?article=1829&context=sportslaw. Accessed April 2024.
2. Fanatics Inc. (n.d.). Brand Protection. https://www.fanaticsinc.com/brand-protection
3. Sports Litigation Alert. (2023). The Supreme Court Clarifies Trademark Law: Its Implications for the Sports Industry.
4. “Licensed Sports Merchandise Global Market to Reach $31.9 Billion by 2030: Focus of Brands on Curbing Counterfeiting of Sports Goods Drives Market Growth.” GlobeNewswire, 27 March 2023,
https://www.globenewswire.com/en/news-release/2023/03/27/2635067/28124/en/Licensed-Sport%20s-Merchandise-Global-Market-to-Reach-31-9-Billion-by-2030-Focus-of-Brands-on-Curbing-Co%20unterfeiting-of-Sports-Goods-Drives-Market-Growth.html. Accessed 18 April 2024. 5. “Sport Trademarks: Everything You Need to Know.” UpCounsel,
https://www.upcounsel.com/sport-trademarks. Accessed 18 April 2024.
6. “About Us Mitchell & Ness Nostalgia Co.” Mitchell & Ness, https://www.mitchellandness.com/about. Accessed 1 May 2024.