Brand antipiracy rule irritates FIFA

28/09/2011 - 10h36

Among the questions FIFA has regarding the World Cup 2014 General Law, the biggest complaint of the big shots centers around the timidity of the protective measures for its sponsors and the official event products.

The irritation of football's largest organization with the World Cup rules, which negatively affects its income, is generating conflict with the federal government.

A source connected to the organization talked about taking the World Cup away from the country because of the law. Officially, FIFA said no threats were made to Brazil, but it didn't deny its dissatisfaction.

The intention of the federation is to avoid ambush marketing, where companies take advantage of the World Cup, and piracy, which makes use of the brands on products.

By law, it was determined that those who sell unofficial products related to the World Cup may suffer imprisonment of one to three months, or a fine. FIFA wanted longer sentences.

Another issue is the amount of the fines, which can reach R$27,250 per day for ambush marketing or piracy. There is the possibility that the process establishes a fine depending on FIFA's losses in each case.

A source connected to FIFA considers the value ridiculous compared to the earnings that could be made through the improper use of the World Cup image.

Marketing incidents are common at the World Cup. In Africa, women were arrested for beer advertising.

FIFA has a contractual obligation to protect its partners, avoiding undue exposure. Because it received around $1.1 billion just in sponsorships for the 2010 Cup.

It earned another $71 million in licensing. In total, this results in about 30% of the organizations earnings.

Therefore, FIFA allies fear a wave of lawsuits against it by partners protesting piracy.

A lawyer for a Cup sponsor, who declined to be identified, said that it is difficult for any of them to actually sue the organization.

Regarding half-price tickets for seniors at the World Cup, held by the government, FIFA also has a concern, but these tickets are a smaller part of its income.

These receipts, usually intended for the COL (Local Organizing Committee), were $300 million in Africa. So the organization headed by Ricardo Teixeira could be the biggest loser in this case.

Already the revenue from television is the highest, reaching $2.4 billion for the last World Cup. The Cup law anticipates distribution of these images to Brazilian broadcasters without rights, that could use 3% of the total.

The measure only applies to Brazil, a smaller market to the organization than Europe or the USA. The fear of FIFA's allies is that TV networks around the world will ask for the same rights as those granted to the Brazilians.

Collaboration by MARTÍN FERNANDEZ, special envoy to Belém

Translated by DAVE WOLIN