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The Rugby World Cup is less than a year away and businesses should try to position themselves now to take advantage of the opportunities that the event will bring. However businesses must be aware of the rules contained in the Major Events Management Act 2007 which restrict the use of unauthorised or ambush marketing relating to the event.

The Act applies to any event declared to be a ‘major event’ for the purposes of the legislation.  Previously, for example, the FIFA U-17 Women’s World Cup was declared to be a major event. Now the RWC has been declared a major event and protected by the rules under the Act.

The Act prohibits ambush marketing by association and ambush marketing by intrusion.

Ambush marketing by association

During the protection period from 11 September 2008 to 21 November 2011 you must not make a representation suggesting you, your business or your brand have an association with the RWC when you are not an official authorised sponsor.

You will be presumed to have made an infringing representation if you use a major event emblem or word. In relation to the RWC:

• the major event emblems you must not use include the RWC and IRB (International Rugby Board) logos and images of the cup; and
• the major event words you must not use include Rugby World Cup, RWC, International Rugby Board, RWC, Spirit of Rugby, The World in Union, Total Rugby, Webb Ellis Cup, World Cup 2011 and other variations of the words.

So you must not use these emblems or words on your products or in your advertising unless you have authority to do so.

Ambush marketing by intrusion

During a ‘clean’ period you:

• must not engage in any ‘street trading’ in ‘clean zones’. Street tradingmeans selling, hawking, or giving away goods or services; and
• must not advertise in a clean zone;

unless you have written authority from the event organiser. As at the date of this article the clean periods and clean zones for the RWC have not been determined. It is expected that the clean zones will be areas around stadiums hosting rugby games and the clean periods will be time periods before and after the relevant game.

Penalties

If you breach the Act then you may be:

• subject to civil proceedings and face court orders such as injunctions, payment of damages or an account or profits;
• subject to criminal proceedings including fines of up to $150,000.

Summary

While it is understandable that protection needs to be given to companies that have paid to be official RWC sponsors, many might take the view that the Act goes further than is necessary. Despite your views on the merits of the Act the rules are in place and must be followed by all businesses.

The RWC has not been held in New Zealandsince 1987 so is a rare opportunity that businesses should try to take advantage of, despite the restrictions in the Act. For information about RWC opportunities, including tenders you can apply for, you can visit the Auckland Plus website http://www.aucklandplus.com. (8 October 2010)