When sports become business: the strategic value of intellectual property
Written by Michelle Denis
The World Intellectual Property Organization (WIPO) celebrated World Intellectual Property Day 2026 under the theme “IP and Sports: Ready, Set, Innovate!”, highlighting the central role of intellectual property in the global sports industry.
This discussion is particularly timely for the Dominican Republic, which will host the XXV Central American and Caribbean Games, one of the region’s premier multi-sport events.
Beyond athletic competition, major sporting events illustrate how sport has evolved into a sophisticated business ecosystem.
Today, the sports industry generates substantial economic value by fostering innovation and creating business opportunities through trademarks, sponsorship and licensing arrangements, media rights, merchandising, and the commercialization of intellectual property.
Much more than a competition
When we think of a sporting event, we usually picture the athletes, their performances, records, and celebrations.
However, behind every competition lies a complex business framework involving event organizers, sponsors, broadcasters, official merchandise, digital content, and technology innovation.
Much of the value generated by a sporting event extends well beyond the action on the field of play. It stems from the legal and commercial framework that enables the protection, management, and commercialization of the intellectual property assets the event creates.
In the Dominican Republic, this legal framework is primarily governed by Industrial Property Law No. 20-00 and Copyright Law No. 65-00. These laws provide protection for trademarks and other distinctive signs, industrial designs, inventions, copyrighted works, and related rights.
In the sports industry, these rights acquire significant strategic value.
Intellectual Property Assets That Create Value
The commercial value of a sporting event begins with its identity. Event names, logos, color schemes, typography, slogans, mascots, and other branding elements create a distinctive identity that allows fans to recognize the event and build an emotional connection with it.
This identity is reinforced through advertising campaigns, official theme songs, audiovisual productions, and other creative content that shape the overall fan experience.
These intellectual property assets are significant revenue generators. They support trademark licensing programs, sponsorships, commercial partnerships, official merchandise, and the commercialization of content across digital and social media platforms.
Media rights, including broadcast and streaming rights, form another cornerstone of the sports business ecosystem.
In an era of real-time content consumption, the live transmission of sporting events has become one of the industry’s most valuable assets, driving revenue through broadcasting agreements, streaming platforms, and sublicensing arrangements.
Athletes themselves also play a central role in this ecosystem. Their reputations and, in many cases, their name, image, and likeness (NIL) constitute valuable business assets that may be monetized through endorsement agreements, sponsorship arrangements, and advertising campaigns.
Innovation is equally transforming the sports industry. From advanced sporting equipment to technologies designed to enhance athletic performance, monitor health metrics, and prevent injuries, many of these innovations are eligible for patent protection.
As a result, they become valuable intellectual property assets capable of creating competitive advantages and creating new business opportunities.
Managing the risks
The significant value of these intellectual property assets also makes them vulnerable to unauthorized use and misappropriation by third parties.
It is therefore common to encounter counterfeit merchandise, unauthorized reproductions of event branding, and marketing campaigns designed to capitalize on the popularity and reputation of a sporting event without authorization.
Similarly, the unauthorized broadcasting or streaming of sporting competitions undermines the substantial investments made by event organizers, sponsors, broadcasters, and other rights holders.
Depending on the applicable legal framework, such conduct may constitute intellectual property infringement, unfair competition, or other violations that give rise to civil, administrative, or even criminal enforcement actions.
For this reason, event organizers typically implement comprehensive intellectual property protection strategies well in advance of the competition.
Registering event names, logos, and other distinctive branding elements helps secure the exclusive commercialization of the associated rights while providing a strong legal basis for enforcing those rights against infringement and other unauthorized business practices.
Ambush marketing: when brand exposure crosses the line
Sponsorship is one of the principal revenue streams generated by major sporting events, and the exclusivity granted to official sponsors represents a highly valuable business asset.
Against this backdrop, companies that are not part of the official sponsorship program may attempt to create an unauthorized commercial association with the event through marketing strategies designed to capitalize on its visibility and goodwill without acquiring the corresponding rights.
Common examples include implying official sponsor status, placing advertising in the vicinity of event venues, or organizing promotional activities targeting the same audience in a manner that suggests a connection with the event. These practices are commonly referred to as ambush marketing.
A lack of awareness of the legal implications of ambush marketing does not shield businesses from liability. Such practices may infringe the rights of official sponsors and, depending on the applicable legal framework and the specific conduct involved, may constitute trademark infringement, unfair competition, misleading advertising, or other actionable violations.
The resulting legal consequences may include injunctive relief, monetary damages, corrective measures, and, in certain jurisdictions, criminal sanctions.
Intellectual property: a strategic business asset in sport
Strategic legal counsel is essential in the context of major sporting events to protect the intellectual property rights involved and provide legal certainty for all stakeholders.
An effective intellectual property strategy extends well beyond legal compliance. It helps safeguard investments, strengthen business relationships, preserve the value of sponsorship and licensing programs, and unlock new revenue opportunities.
In practice, this includes:
– Registering trademarks and other distinctive signs at an early stage.
– Structuring sponsorship agreements with clear exclusivity and intellectual property provisions.
– Negotiating and documenting licensing arrangements for official merchandise and other intellectual property assets.
– Implementing monitoring and enforcement programs to identify and address unauthorized uses.
– Taking timely enforcement action against infringements and other unauthorized business practices.
Companies seeking to leverage the commercial appeal of major sporting events without acquiring official sponsorship rights should exercise caution.
Marketing campaigns should avoid creating any unauthorized association with the event, its organizers, or its official sponsors, and all advertising materials and commercial arrangements should be carefully reviewed to mitigate the risk of intellectual property infringement or unfair competition claims.
Ultimately, major sporting events are far more than high-profile competitions. They are sophisticated business platforms whose value is driven by intellectual property and other intangible assets.
Protecting and strategically managing those assets is fundamental to maximizing their economic value while preserving the integrity of the sports business ecosystem.
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