Scarinci Hollenbeck, LLC, LLCScarinci Hollenbeck, LLC, LLC

Firm Insights

How the IOC's Amended Rule 40 is Benefiting Olympic Athletes

Author: Scarinci Hollenbeck, LLC

Date: August 19, 2016

Key Contacts

Back

IOC Relaxes Rule 40 Restrictions on Non-Official Olympic Sponsors

Many of the athletes competing in Rio would not be at the Olympics without the financial support provided by corporate sponsors. However, the International Olympic Committee’s (IOC) strict advertising rules (specifically Rule 40) generally prohibit competitors from even tweeting about non-official sponsors, and those companies are banned from running advertisements featuring sponsored athletes during the Games.

rule 40

In response to criticism regarding the stringent advertising restrictions, particularly with regard to the impact of athletes’ rights, the IOC did relax the rules slightly in advance of the Rio Games. However, there are still a number of hoops that businesses must jump through in order to avoid intellectual property infringement liability.

Rule 40 of the Olympic Charter

Rule 40 of the Olympic Charter states: “Except as permitted by the IOC Executive Board, no competitor, coach, trainer or official who participates in the Olympic Games may allow his person, name, picture or sports performances to be used for advertising purposes during the Olympic Games.”

The IOC’s Rule 40 guidelines place a number of restrictions on both athletes and non-Olympic commercial partners.

By way of example, any use of the image of a participant, taken during the Olympic Games, in combination with a company or brand, is prohibited. Olympic advertising rules also prohibit athletes from wearing branded apparel or accessories that are not part of the U.S. Team apparel issued by the USOC.

Under IOC guidelines, athletes may only use social media during the period of the Games for the purposes of sharing their experiences and communicating with their friends, family and supporters. Using social media for commercial and/or advertising purposes, including thanking sponsors, is expressly prohibited.

Changes Under the Relaxed Rules

In 2015, the IOC amended its Rule 40 guidance to enable continuation of in-market generic advertising featuring Rio Games participants during the Games period. The U.S. Olympic Committee (USOC) subsequently adopted the IOC’s rule change.

In order to benefit from the Rule 40 changes, U.S. athletes and non-official sponsor companies were required to submit waivers to the USOC by January 27, 2016, including plans for advertising and social media campaigns. In addition, the campaigns must have been launched by March 27, 2016.

It is important to highlight that official Olympic IP, such the Olympic rings, is still off-limits.

Approved campaigns may not include direct or indirect association with the Rio Games, the USOC, Team USA, Olympic IP or terms generally associated with the Olympic Games. However, for companies that sponsor well-known athletes like Michael Phelps or Simone Biles, the official logos aren’t really necessary for a successful campaign. For an example, check out Under Armor’s “Rule Yourself” campaign with Michael Phelps and GoPro’s digital video series, “Finding Missy,” featuring Missy Franklin.

rule 40

For small businesses that did not have the opportunity to take advantage of the waiver process for the Rio Games, the 2018 Winter Olympics in Pyeongchang, South Korea are not that far away. In addition, there are ways to talk about the Olympics on social media without mentioning the Games by name, marketers just have to get creative (check out Ford’s “We Are All Fans”). Finally, Zerorez, a carpet cleaning company in Minnesota, filed a lawsuit against the USOC, alleging that the advertising rules exceed the trademark protection afforded under U.S. Code Chapter 2205.

If you are a business owner unsure of how to safely become a sponsor without liability or would like to discuss the matter further, contact me, Anthony Caruso.

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Scarinci Hollenbeck, LLC, LLC

Related Posts

See all
Section 363 Sales in Bankruptcy: What Businesses, Lenders, and Buyers Need to Know post image

Section 363 Sales in Bankruptcy: What Businesses, Lenders, and Buyers Need to Know

When a company enters Chapter 11 bankruptcy, many assume the process will culminate in a lengthy reorganization plan. However, distressed businesses are increasingly being sold through a different mechanism — a sale under Section 363 of the United States Bankruptcy Code. A Section 363 sale allows a company, as a debtor-in-possession in bankruptcy, to sell […]

Author: John D. Giampolo

Link to post with title - "Section 363 Sales in Bankruptcy: What Businesses, Lenders, and Buyers Need to Know"
Zoning Laws Explained: What You Need to Know Before Buying Property post image

Zoning Laws Explained: What You Need to Know Before Buying Property

Before buying property, it is critical to determine whether local zoning laws may affect your plans. If you plan to redevelop the property, you will want to confirm that local zoning regulations permit development as intended. If acquiring property that is already developed, you must verify that the use is permitted in the underlying zoning […]

Author: Wendy Rubinstein Quiroga

Link to post with title - "Zoning Laws Explained: What You Need to Know Before Buying Property"
Special Needs Trusts in New Jersey: Planning for Your Loved One’s Future post image

Special Needs Trusts in New Jersey: Planning for Your Loved One’s Future

For parents of a child with a disability, estate planning raises concerns that go well beyond deciding who will inherit their assets. Parents may spend years making sure their child has the right care, services, and support. Eventually, they must also confront a difficult question: Who will take over when they can no longer do […]

Author: George McGowan

Link to post with title - "Special Needs Trusts in New Jersey: Planning for Your Loved One’s Future"
What Every Real Estate Investor Should Know Before Buying a Rental Property post image

What Every Real Estate Investor Should Know Before Buying a Rental Property

Before buying a New Jersey rental property, an investor should verify realistic operating numbers, the property’s legal and regulatory status, lead-based paint and flood compliance, the existing leases and tenant protections, and the right ownership structure. A rental property is more than a piece of real estate; it is an operating business subject to legal, […]

Author: Donald M. Pepe

Link to post with title - "What Every Real Estate Investor Should Know Before Buying a Rental Property"
Can You Change an Irrevocable Trust in New Jersey? post image

Can You Change an Irrevocable Trust in New Jersey?

In New Jersey, an irrevocable trust can sometimes be modified even though its name suggests otherwise, and one of the primary tools for doing so is a process called decanting. Whether decanting is available depends on the specific terms of the trust and the discretion given to the trustee. Key takeaways: New Jersey has no […]

Author: Marc J. Comer

Link to post with title - "Can You Change an Irrevocable Trust in New Jersey?"
How Intellectual Property Valuation Will Impact Business Transactions post image

How Intellectual Property Valuation Will Impact Business Transactions

Intellectual property valuation determines the monetary value of a business’s IP assets, and it drives outcomes in licensing deals, joint ventures, mergers and acquisitions, financing, and ownership disputes. The most valuable assets of a business are often the things that cannot be seen or touched: a proprietary process, a copyrighted work, brand recognition, or the […]

Author: Jay McDaniel

Link to post with title - "How Intellectual Property Valuation Will Impact Business Transactions"

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Sign up to get the latest from our attorneys!

Explore What Matters Most to You.

Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.

Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.

Let`s get in touch!

* The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form. By providing a telephone number and submitting this form you are consenting to be contacted by SMS text message. Message & data rates may apply. Message frequency may vary. You can reply STOP to opt-out of further messaging.
“If you would like to submit a file, please email it directly to info@sh-law.com.

Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!