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Introduction
Sports law in India is ever changing and evolving concept that includes various areas of law such as contract law, employment law, intellectual property law and taxation. The statute governing sports in India has gone through major changes with the rise of professional sports league such as Indian Premiere League (IPL). There have been other leagues as well like Pro Kabaddi, Indian Super League (ISL) but out of all of them IPL is the most famous one in the country.
Traditionally, sports were seen and categorized as entertainment within the purview of Indian Constitution. The Ministry of Youth Affairs and Sports which was established in 1982, plays a significant role in administrating policies related to sports and supervising national sports federations. However, India lacks a proper legal framework that addresses the sports law issues and instead, existing laws are applied to resolve the disputes related to sports domain. In modern times, there is increasing trend of sports among the people which has led to its commercialization and to regulate all of them, there is need for regulations which will protect the rights of athletes.
Historical Context of Sports in India
In the ancient times i.e., Vedic period (approximately 1500 BCE to 500 BCE), activities such as wrestling, archery and chariot racing were prevalent. In our scriptures like Mahabharata and Ramayana, there is mention of Bhima and Arjuna showcasing physical strength and celebrated as remarkable athletes.
Furthermore, in the medieval period, the Mughal Empire made pehlwani famous and in this era sports was no important just for showcasing physical prowess but also because of social standing.
In British colonial period, western sports were introduced by the Britishers and cricket emerged as the national obsession serving expression of national pride. Efforts were made to standardize games which lead to the introduction of competitive formats for Kho-Kho and Kabaddi.
After India gained independence in 1947, sports were seen with the view of national pride. The establishment of Indian Olympic Association in 1927, even before independence which laid down the groundwork for India’s organized sports governance. The nation participated in its first Olympic games in 1900. The culture of sports grew with the establishment of national federations responsible for the governance of sports, player development and organizing competitions.
Regulatory Bodies in Indian Sports and Role of Sports Authority in India
In India, the governance of sports is done through various regulatory bodies that play significant role in development and administration of sports at local, national and various international levels. Firstly, Ministry of Youth Affairs and Sports which is government owned body responsible for formulating policies related to sports. Secondly, The Indian Olympic Association which is responsible for selecting the athletes that will represent the country internationally. Thirdly, each sport is governed by it respective Sports Federation responsible for promoting those specific sports in the country. Board of Control for Cricket in India (BCCI), the All-India Football Federation (AIFF), and the Badminton Association of India are the example of some well-known sports federations in our country.
The Sports Authority of India is the apex national body for sports development in the country. It was established in 1984 and was created initially to oversee the preparations for the IX Asian Games hosted in New Delhi. Sports Authority of India is responsible for managing various regional training centres, academics, infrastructure facilities, helping athletes in getting world-class training and coaching. They are responsible for implementing development schemes aimed at nurturing young athletes from various backgrounds including academic development of sports which focuses on providing knowledge to enhance athlete performance while also equipping the athlete with science of training and injuring prevention.
Intellectual Property Rights in Sports
Intellectual Property Rights (IPR) are significant in the sports industry as it provides protections in terms of securing economic and commercial interests of athletes, teams and organizations. In sports, IPR mainly includes trademarks, copyrights, patents, trade secrets. Trademarks protect the identities of brands such as their logos, team names which are important for merchandising and sponsorship opportunities. Copyrights safeguard creative works that are associated with a particular sport such as broadcasts and promotional materials which are essential to combat piracy and also to ensure that media companies can get back their investments. Patents safeguard the new technologies that are developed in sports equipment and training while trade secrets protect the confidential strategies in business so as to gain competitive advantage over the other competitors.
The effective management of IPR is important for the growth of sports industry as organizations use IPR for commercial gains through licensing and brand partnerships. Moreover, they also face challenges related to infringement and unauthorized use. Addressing these challenges require legal strategies to enforce rights and also shaping in success and integrity of athletes.
Use of Trademark in protection of Sport Teams and Events
Trademarks are proved to be invaluable assets for sports teams and events as they play essential role in brand identity and recognition. A trademark consists of logos, team name and a catchy slogan that perfectly describes their motto of team which help in distinguishing a team from other teams so as to create uniqueness in the minds of fans. By registering these trademarks, sports organizations can protect their brand ensuring their image and reputation is intact in competitive market. For instance. “Jumpman” logo is associated with Michael Jordan which symbolizes prestige and helps in garnering commercial drivers through various sorts of sponsorships.[1] Another example is of helicopter shot that is trademarked by M.S. Dhoni as he is famous for the same.
The strategic use of trademark is useful in marketing and commercialization of sports events. Sponsorship deals are dependent upon the visibility of trademarks of popular teams to garner fanbase. The organizations behind popular teams vigorously defend their trademarks to maintain the integrity, enhance consumer trust. This careful management of trademarks ultimately contributes to the long-term success and growth of sports teams and events.
Copyright Issues in Sports Broadcasting
Copyright issues are increasingly prominent in the sports broadcasting where content creation, distribution and usage are protected under legal aspects. While the sporting event may not be copyrighted but the broadcasts themselves such as commentary, graphics and audio-visual presentations are protected as original works. This means that organizations such as media companies secure exclusive copyrights to their programming. Unauthorized usage, distribution or rebroadcasting are illegal and a person can face legal repercussions as they directly affect the profitability. Even though these contents are copyrighted but with the advancement of technology, there is enormous growth in unauthorized live streaming and the legal frameworks like Copyright Act[2], lag behind these advancements and organizations struggle to stop the same. With the advancement, there is requirement of amendment in the existing statutes to protect the sports broadcasting rights in an increasing competitive and dynamic market where ever little thing can affect the profitability and viewership of the event.
Challenges and Controversies in Sports Law and IPR
One of the primary challenges is enforcement of copyrights because in the era of technology, unauthorized streaming and content sharing threaten the profitability of the organization and makes it difficult for them to recoup their investments. Another pressing issue is increase in athlete endorsements and the associated rights of publicity. As athletes promote brands on their social media, the legal frameworks governing these endorsements have come under scrutiny. Sometimes, controversies arise during negotiation of endorsement deals and sometimes athletes engage in behaviours that may damage the reputation of them along with the brand associated with them. Furthermore, there are controversies related to brand conflicts where a person cannot promote two different brands dealing in same business. All these can only be avoided when there are clear legal guidelines and robust contracts while dealing with athlete endorsement arrangements. Some other challenges that are either faced by the individual player or teams are :-
Doping Allegations
Doping means the act of consuming illegal substances to gain competitive advantage over others. Doping allegations present significant challenges regarding governance of athletes and integrity of competitions. In India, the introduction of National Anti-Doping Act 2022[3] aims to maintain fair play but also raises questions about athletes’ rights and due process. Athletes charged with doping face severe penalties including temporary suspensions and reputational damage and in some circumstances they are permanently removed. Regardless, any of it highly impact their careers and endorsement deals.
Player Image Rights, Commercial Rights and Endorsements
The commercial exploitation of player image is prominent contention in the area of sports law. There is need for stringent frameworks that will protect the individuals against unauthorized commercial use of their likeness. Athletes face challenges in terms of managing their image rights as the clubs and organization with which they have signed for a term, often try to reap commercial and economic benefits from athletes persona without taking individuals permission explicitly. These dynamics can result in multiple conflicts where an endorsement agreement can clash with the rules and policies of the club. These rules limit an individual’s own personality and often he remains more like a commodity because a club thinks that they have given all their rights and now they own the athletes. All these happens because athletes want to make their career and for that, they need the club’s support. Taking advantage of all that, the clubs draft contracts allowing minimal or no negotiation that minimizes an athletes individuality. That’s why there is need of robust framework that will govern these negotiations.
Contractual Disputes and Player Transfers
Contractual disputes in sports, particularly in relation to player transfers, illustrate the interplay between the legal frameworks and sports industry. In India, the Indian Contract Act, 1872[4], establishes principles governing all types of contracts, yet transfer of player lead to complexities such as disputes over transfer fees and other regulations etc,. Controversies arise when parties interpret the terms of the contract differently regarding what happens if a player wants to leave the club. These agreements involve multiple stakeholders including the players, clubs, agents etc that further complex the contracts.
Disciplinary Actions and Code of Conduct
Disciplinary actions and code of conduct seek to enforce uniform and standard discipline among the athletes. For this, a framework for governance is established yet there is no proper implementation, leading to disputes regarding the fairness of penalties imposed on athletes. This inconsistency seldom leads to conflicts and athletes may feel that their rights are compromised and there is no due process. Moreover, with the evolving issues of gender equality and inclusivity, the complexity of how disciplinary actions are perceived is important and a dialogue regarding the same within the community is necessary.
Landmark Cases in Sports Law and IPR in India
ICC Development (International) Ltd. v. Arvee Enterprises[5]
In this, the Delhi High Court addressed the issues of ambush marketing which is a situation when an advertiser who is not officially associated with the event or team tries to associate itself so as to gain the fanbase without paying the sponsorship fees and also talked about protection of IPR for the ICC. The court highlighted that there is need of robust framework so as to safeguard the intellectual property associated with sporting events.
Zee Telefilms Ltd. v. Union of India[6]
This case is often regarded as crucial in Indian sports law and it arose after the Board of Control for Cricket in India (BCCI) terminated broadcasting content with the Zee Telefilms because of which a dispute arose over the scope of BCCI’s functions. The Supreme Court ruled that BCCI is not a state under Article 12 of the Indian Constitution but can come under judicial scrutiny.
Cricket Association of Bihar v. Board of Control for Cricket in India (BCCI)[7]
In this case, the cricket association of Bihar filed a write petition against BCCI regarding its governance practices specifically while organizing the tournaments like Indian Premiere League (IPL). The Supreme Court established Lodha committee to investigate BCCI’s operations and also emphasized on importance of fairness and accountability in sports organizations.
Possible Solutions and Recommendations
To combat the problems related to intellectual property or any other problems related to sports industry, there is need for stringent legal framework, enhanced governance mechanisms and educational initiatives. Currently, there is lack of sports law that is applicable in the whole country which can address various issues pertaining to problems in sports industry. There is need for legislations for the problems like player rights, commercial rights, broadcasting regulations aside from the general principles in Indian Contract Act. Moreover, improving governance structures is crucial and the bodies like BCCI and other national federations should be asked to be more transparent while discharging the functions that are of public importance. Furthermore, a clear dialogue should be promoted among various stakeholders so that there is effective decision making which is democratic as everyone will have chance to speak.
Conclusion
The sports industry is evolving rapidly presenting both opportunities and challenges for growth. The comprehensive legislation needs to be established as soon as possible so as to safeguard the rights of athletes and organizations. Athletes, organizations and government must work collaboratively to promote accountability and transparency and ensure that all the voices are heard which will only enhance the integrity of sports as a whole.
Author: Saloni Agarwal, in case of any queries please contact/write back to us via email to chhavi@khuranaandkhurana.com or at Khurana & Khurana, Advocates and IP Attorney.
[1] ByIgor Demcak. “The Role of Trademarks in Sports: How Athletes and Teams Protect Their Brands.” tramatm.com_(October 27, 2024, 7:30 AM)_https://www.tramatm.com/blog/category/media/the-role-of-trademarks-in-sports-how-athletes-and-teams-protect-their-brands.
[2] The Copyright Act, 1957, Act no. 14 of 1957 (India).
[3] National Anti-Doping Act, 2022, Act of Parliament (India).
[4] Indian Contract Act, 1872, Act no. 9 of 1872 (India).
[5] ICC Development (International) Ltd. v. Arvee Enterprises & Anr., 2003 (26) PTC 245
[6] Zee Telefilms v. Union of India (2005) 4 SCC 649
[7] BCCI v. Cricket Association of Bihar (2015) 3 SCC 251