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'South Africa: Harsh Penalties for 2010 Trademark Abuses'

Businesses and individuals caught using Fifa's trademarks illegally face harsh penalties, including having to make substantial royalty payments and possible jail time.
The football governing body is investigating more than 50 cases linked to the forthcoming World Cup.Owen Dean, from Spoor and Fisher, the legal firm that handles Fifa's trademark affairs, said those who broke the rules would be shown no mercy. But he said that those who used Fifa's trademarks illegally often acted in ignorance. The majority of cases were for advertising and using Fifa trademarks on merchandise.

The words "2010", "World Cup" and "S"These people will be caught. You cannot use any of Fifa's logos or trademarks without their consent." Penalties would be determined by the cost of damage to Fifa and its official sponsors, he said.

"In bigger cases with companies, the infringer will be expected to pay substantial royalties.
"In a criminal case, where counterfeit goods are confiscated, the penalties are very severe. Fines of up to R5 000 or three years in prison per offending article (T-shirt, keyring, for example) could be imposed." Fifa's sponsors have paid a total of $1-billion (R7.6bn) - a third of Fifa's earnings - to be the only brands to benefit from the tournament's enormous coverage. Dean explained that during previous World Cups, ambush marketing, where people try to benefit from the event without being official partners, increased in the last few months before the tournament. "I'm sure we are going to see more of these cases closer to the event."

Three companies are expected to face the wrath of Fifa in the next few months over various 2010 trademark and copyright issues. Fifa has targeted the Eastwood Tavern, a sports bar in Pretoria, Executive African Trading, which produces keyrings and ornaments, and World Cup homes, which is offering accommodation for the tournament.

In Cape Town, former commercial crimes investigator Sidney van Dyk has been tasked with leading a dedicated team of 30 metro police officers to monitor and prosecute businesses that illegally take advantage of World Cup publicity. Earlier, Pam Naidoo, of the city's 2010 operations team, said businesses needed to creatively navigate their way around the restrictions to take full advantage of opportunities.
"There will be opportunities for businesses, but they can't put out their brand or logos, or use any of the Fifa marks," she said.

The city is compelled to support Fifa's rights protection programme, to protect Fifa from event piracy and ambush marketing before, during and after the event.outh Africa", sometimes used in combination, were among the words in dispute in these cases.
"Two cases are currently before the courts, with another one expected to be heard next month," said Dean. "In addition to that, three cases were launched but got settled."
He warned business owners and entrepreneurs to read Fifa's rights protection guide.
"More and more people are using Fifa's trademarks to advertise and sell products," he said.