1.02 Interpret legal issues pertaining to

sports and entertainment management.

Discuss legal issues associated with marketing products.

Certain products are protected from reproduction or use unless permission is granted by the owner.

Intellectual property:is a person’s property that results from a person’s original creative thought, as patents, copyright material, and trademarks.

Protecting intellectual property is important because:

Substantial profit is a reflection of a good idea.

Businesses who originate an idea and protect it usually maximize profits.

Discuss legal issues associated with marketing products. (cont..)

Patents are granted for an invention or an improvement on a product.

Patents are granted for a limited period of time.

Trademarks and service marksA word, phrase, symbol, or design that

identifies and distinguishes the company from others.

Granted legal protection through the United States Patent and Trademark Office.

Discuss legal issues associated

Copyrights are granted to creators of: Literary works (novels, poems,

newspapers). Artistic works (photography,

paintings). Broadcasts (television, radio,

Internet). Films. Original musical composition.

Discuss legal issues

Industrial designs apply to structural designs, aesthetics, or the look of a product.

Certification marks are marks that certifies and protects the origin, material, quality, mode of manufacture, accuracy, or other characteristic of a product or service.

Discuss legal issues associated with marketing products. (cont..)

Collective marks trademark or service mark used by the members of a group or organization to identify themselves as members.

Most sports and entertainment companies need to retain legal counsel to navigate and protect their company.

Teams or leagues such as the NFL, NBA, and Duke University own their logos.

Discuss legal issues associated with marketing products. (cont..)

The owners of logos can license others to use their logo to sell merchandise.

Billions of dollars of merchandise are sold without licensing. Trademark infringement is using a trademark

without authorization. Team owners see this as potential loss of

revenue. May result in higher prices for legally registered

merchandise.

Sherman Antitrust Act

The term antitrust is used to describe any contract or conspiracy that illegally restrains trade and promotes anti-competitive behavior. Think of the term anti-competition rather than antitrust.

Sherman Antitrust Act is federal legislation to protect industries from one competitor that discourages competition within the industry.

MLB is exempt from the Sherman Antitrust Act because of a 1922 U.S. Supreme Court Ruling

It is thought of as a game rather than a business

Sports Broadcasting Act of 1961, allows Pro Sport teams to have contracts with networks for national broadcasting rights. 

Example: In 2011, the NFL made a nine-year extensions to its broadcast television packages with Fox, NBC and CBS for $27 Billion.

Blackout - is when a league blocks the broadcast of a certain game in a certain territory.

UNFORTUNATELY, IN COLLECTIVE BARGAINING ONE PARTY OR THE OTHER TOO OFTEN TRIES TO GAIN AN ADVANTAGE - A BARGAIN, LIKE BUYING SOMETHING

IN A STORE FOR LESS THAN IT IS WORTH.-CHARLES E. WILSON

FORMER GE PRESIDENT

Collective Bargaining

Collective bargaining

Gives players the right to organize, use the agent of choice and protect themselves.

Collective bargaining agreements are agreements between players’ associations (or unions) and team ownership/management.

Free Agency- is an athletes' ability to renegotiate his/her contract with their existing team or with another team

What do Entertainers and Athletes Want?

Also includes: A minimum salary Player’s rights Medical disability insurance Labor rules Length of contract Restrictions of certain activities or behaviors. Rules for agents Player and team travel

PLAYERS’ ASSOCIATIONS

The labor unions that represent athletes and function the same as unions in other industries.

They help aid athletes in issues such as salaries, contracts, and profit sharing.

The sports’ leagues represent the owners and managers and their goals = control costs.

In 1935, the National Labor Relations Act gave all U.S. workers the right to organize into unions to collectively bargain and strike.

STRIKE! STRIKE! STRIKE!

When negotiations between a players’ union and the owners’ organization cannot be reached, the players might vote to determine if they should go on strike.

This leads to no revenue being generated, employees not working, and a decrease in consumer spending.

More Contracts

Exclusivity - Sponsors usually insist on being the only ones in their particular category of goods or services.

For example, Coke and Pepsi would never sponsor the same event, nor would Nike and Reebok.

Option to renew and a right of first refusal

The option to renew -allows the sponsor to extend the agreement after the contract expires.

The right of first refusal - The event organizers will allow the sponsor the opportunity to renew before offering the contract to any other sponsors.

RIGHT OF PUBLICITY & PRIVACY LAWS

Right of publicity protects a person from the unauthorized use of his/ her name and likeness for financial gain.

The main difference between the two is that right of privacy is meant to mentally/emotionally protect a person, whereas right of publicity is meant to financially protect a person.

Ticketing

Ticket brokers are registered businesses that legally buy and sell tickets to a variety of entertainment events and guarantee ticket authenticity.

TicketmasterTicket TreeFango Movie Tickets

Ticket Scalping is the act of reselling tickets for admission to events