By Melissa Higham - 3 Mar 2011
New Zealand's greatest sporting event, the Rugby World Cup 2011
(RWC), will soon be here. It appears to be a fantastic opportunity
for New Zealand businesses to capitalise on the hype and drum up
some extra business for themselves. But doing so may be more
difficult than many hope.
The Major Events Management Act 2007 (MEMA) prevents 'ambush
marketing' practices, and protects the owners and official sponsors
of major events. Ambush marketing is where businesses try to link
themselves with major events by advertising without signing a
sponsorship agreement or paying any sponsorship fees. The RWC is a
major event under the MEMA.
The MEMA prohibits the following commercial activities:
- Advertising and promotions that can be deemed an intrusion on
RWC activities or the audience of those activities. So street
trading is prohibited in defined areas around the stadiums called
'clean zones'.
- Representations suggesting that individuals, businesses,
brands, goods or services have an association with the RWC when
they do not. The MEMA specifically outlines certain words,
logos and other trademarks ('prohibited information') that can be
used only by the event organiser or official sponsors.
- Activities that may compromise the RWC - e.g. ticket scalping
or pitch invasion.
- Any kind of advertising which uses prohibited information to
create an association.
Others have tried - and failed
A good example of ambush marketing occurred at a recent Fifa
World Cup game in South Africa. A group of 36 women were hired to
wear orange dresses promoting the Dutch brewery Bavaria. The women
were ejected from the stadium, and two were arrested and charged
under the Contravention of Merchandise Marks Act. This Act prevents
companies from benefiting from an event without paying for
advertising.
In the UK, The Independent reported on 8 February that
organisers of the London 2012 Olympic games are taking a similar,
active anti-ambush approach. Already, an East End café called Café
Olympic is being targeted, despite it being around for three years
already and not using the Olympic five rings logo.
In New Zealand, the MEMA has already had its first culprit. In
September 2010, a man was charged for importing fake RWC
merchandise. The Auckland District Court fined both the man and his
company $20,000.
The Commerce Commission is keen to ensure that businesses play
by the rules in attempting to cash in on the opportunities
presented by the Rugby World Cup 2011. A new page on the
Commission's website provides assistance to businesses and
consumers about issues that may arise in the context of the RWC.
See www.comcom.govt.nz/rwc.
If you are unsure about whether something may breach the MEMA or
create an association with the RWC, always seek legal advice before
proceeding. Please contact Andrew Nicoll or your usual contact at
Martelli McKegg on 09 379 7333.