Leveraging Intellectual Property in The Global Sports Economy

LEVERAGING INTELLECTUAL

PROPERTY IN THE GLOBAL

SPORTS ECONOMY
SPORTS AS A TOOL FOR
PROGRESS AND DEVELOPMENT
TABLE OF CONTENTS
Executive Summary.................................................................................................................. 5
Introduction.............................................................................................................................. 7

1. IP Rights and Sports: A Symbiotic Relationship................................................................10
1.1 Mapping IP Rights in the Sports Sector......................................................................................................... 10
1.11 Patents.............................................................................................................................................................................10
1.1.2 Trademarks...................................................................................................................................................................14
1.1.3 Design Rights...............................................................................................................................................................15
1.1.4 Copyrights.....................................................................................................................................................................16
1.1.5 Trade Secrets...............................................................................................................................................................18
1.2 IP Assets in the Sports Marketplace..............................................................................................................20
1.3 The Untapped Potential of Emerging Economies........................................................................................23
2. The Cost to Society of IP Infringement of Sports-Related Goods and Content............ 24
2.1 T
he Global Impact of Counterfeit Sporting Goods and
Sportswear: Trademark Zoom-In....................................................................................................................24
2.1.1 The Potential Dangers of Counterfeiting..............................................................................................................24
2.1.2 Counterfeiting in the Sporting Goods and Sportswear Sectors....................................................................26
2.1.3 Estimating the Global Economic Impact of Counterfeiting on the

Sporting Goods and Sportswear Industries....................................................................................................... 27
2.2 P
iracy of Live Sports Broadcasting in Emerging Economies:
A Barrier for National Sports Development.................................................................................................29
2.2.1 Piracy of Live Broadcasting of Sports Events: A Global Concern.................................................................29
2.2.2 The Pivotal Role of Robust Copyright Protection in Promoting Sports......................................................29
2.2.3 Promoting the National Sport Through Better IP Protection: The Case of China...................................30
2.3 Set-Top Boxes: A New Battleground in the Fight Against Sports Broadcasting Piracy.........................33
2.3.1 Set-Top Boxes: Introducing “Lean-Back” Piracy................................................................................................ 33
2.3.2 The Impact of Set-Top Box Piracy on Live Sports Broadcasting.................................................................. 34
2.3.3 Measuring the Magnitude of Sports Broadcasting Piracy.............................................................................35
2.3.4 Countering Set-Top Box Piracy of Sports Broadcasting: A Developing Field.......................................... 37
3. Conclusions and Final Thoughts....................................................................................... 38

TABLES AND FIGURES
Table 1: Make-up of the Sports Sector (as defined in this report)...................................................................................... 8
Table 2: Number of Utility Patents Granted to Date Across 17 Selected

Patent Offices Around the World, Selected Sports Categories..........................................................................11
Table 3: Revenues from TV and Digital Subscriptions of the Chinese

Super League Compared with ESPN and Eurosport............................................................................................31
Figure 1: Wearable Heart Rate Monitor (U.S. Patent 14,292,669, Fitbit Inc.)....................................................................12
Figure 2: Global Revenue Forecast for Apps and Wearables (in million USD)................................................................13
Figure 3: Top 10 Sports Teams by Brand Value Exceeding the Average

(in million USD), Forbes Fab 40, 2017.................................................................................................................................. 15
Figure 4: Revenues from Olympic Games’ Broadcasting Rights (in million USD)........................................................... 17
Figure 5: North America Sporting Events Market by Segment............................................................................................21
Figure 6: The Impact of Counterfeiting on the Global Market for Sporting

Goods and Sportswear................................................................................................................................................28
Figure 7: Example of a Currently Available “Fully Loaded” Set-Top Box......................................................................... 33
Figure 8: The Economic Cycle of Set-Top Box Piracy........................................................................................................... 34
Figure 9: Share of Consumers Most Interested in Viewig Pirated Live

Broadcasting of Sports................................................................................................................................................36
EXECUTIVE SUMMARY
Intellectual property (IP) rights stimulate creativity in virtually all aspects of human behavior; they provide
the platform to translate good ideas into profitable endeavors. This report analyzes how IP rights enable
one seemingly unrelated economy: the world of sports.
By its nature, sports involves multiple layers of economic activity. Properly framed, kicking the ball on
a rural dirt field can become instead a stadium filled with tens of thousands of spectators plus millions
more glued to their televisions, laptops, or smartphones. Cutting-edge sports gear, alluring sportswear
designs, and the excitement surrounding competition make sports a highly enjoyable and popular
activity. But each sport and the related sports industries need the protection of some form of IP rights,
and an environment that enforces those rights. In an enabling environment of robust IP rights, a chain
reaction occurs benefiting multiple sectors of the economy—to the tune of 1% of global GDP.
Key finding 1: The modern sports industry depends on and cannot exist without
IP rights.
Innovation is present in every sport. Yet sports cannot become a commercially productive asset
without IP rights and incentives. Patent-protected inventions drive improvement in sporting equipment,
including sportswear and footwear. Broadcasting rights are the foundation for investment in transmitting
tournaments to fans and sports enthusiasts. Trademarks protect the goodwill of events, leagues, teams,
and manufacturers of sporting goods. Licensing and merchandising agreements generate the revenues
needed to take sports to higher levels of productivity. The sports economy is an instructive case study of
how an IP asset becomes a platform for economic activity and related industries.
Key finding 2: A modern sports industry requires a broad menu of IP rights to thrive.
Traditionally, sports has been associated with two main IP rights: copyright and trademarks. But this
report finds that this traditional view is a limited view of how sports industries use IP rights. Copyright and
trademarks are still foundational to various subsectors (e.g., broadcasting, apparel, brand value) but the
use of other types of IP rights to protect content/creation is significant. For example, the rise of enhanced
technologies yields more research-driven innovative sporting products. In turn, these products require
strong patent protection. There are literally tens of thousands of utility patents relating to sports. A search
of the Google Patents Public Datasets (a patent database aggregated from 17 patent offices around the
world) reveals hundreds of thousands of utility patents related to sports and making reference to such
terms as “athletic” or “athletes.” Many sporting goods companies are also technology companies with
broad patent portfolios. Similarly, the growth of the internet and globalization of sports—with international
viewership of domestic leagues growing exponentially—necessitate clear and strong broadcasting
rights. Revenues from broadcasting and media rights are becoming the main source of revenue for
sports organizations (including leagues and individual teams) to build stadiums, host tournaments and
championships, and carry out community outreach to maintain and grow public interest in their sport.
To build a modern, successful sports economy, countries must provide a broad menu of IP rights.
5
LEVERAGING INTELLECTUAL PROPERTY
IN THE GLOBAL SPORTS ECONOMY
SPORTS AS A TOOL FOR PROGRESS AND DEVELOPMENT
Key finding 3: Physical counterfeiting poses a real threat to the sports industry and
to consumers.
Counterfeit sporting goods and sportswear have a substantial and detrimental impact on economies—
depriving leagues and athletes of economic gains, damaging brand integrity and consumer confidence,
and resulting in loss of legitimate jobs. Given the rise in online shopping, with rates of e-commerce
increasing by double digits annually, levels of counterfeiting are growing exponentially. This study
estimates that the direct economic impact of counterfeiting on the global sporting goods and sportswear
markets is almost $50 billion each year. When accounting for the indirect effect on related services, the
overall impact of counterfeiting is an estimated $84 billion each year.
Key finding 4: Online piracy of sports broadcasting is mushrooming, but

governments struggle to keep up with the threat.
Unauthorized streaming services and websites for pirated sports broadcasting are operating by the
thousands. Ubiquitous and cheap “plug-and-play” set-top boxes are providing free access to sports
broadcasts at the click of a mouse. The fast proliferation of broadcast piracy is a major concern, as it is
stunting growth of subscription fees and advertising, estimated at dozens of billions of dollars each year.
For example, in China online piracy is stifling of its domestic soccer league (Chinese Football Association
Super League). Specifically, despite growing consumer interest and match attendance, league revenue
from paid subscription amounts to less than 10% of overall revenue; this compared with 50% in mature
markets. While in mature markets governments and key stakeholders like Amazon, eBay, and Facebook
are taking steps to combat the threat posed by piracy, emerging economies are still struggling to define the
scope of their copyright laws and are unable to take swift action to shut down sources of pirated content.
6
INTRODUCTION
In December 2016, the United Nations (UN) General Assembly adopted a Resolution affirming the role of
sports in the 2030 Agenda for Sustainable Development. The Resolution acknowledged the contribution
that sports has on promoting education, improving health, stimulating development, and achieving
peace.1 In the words of the UN Secretary General, “sport has become a world language, a common
denominator that breaks down all the walls, all the barriers. It is a worldwide industry whose practices
can have widespread impact. Most of all, it is a powerful tool for progress and for development.”2
Of course, everything cuts both ways, including sports. At times hooliganism and violence have tarnished
sports, but thankfully, such behavior is the exception rather than the rule. By its very nature, sports brings people
together and blurs cultural, political, and ethnic differences by promoting dialogue and reducing tensions.
MAPPING THE SPORTS ECONOMY
The Olympics and the Fédération Internationale de Football (FIFA) World Cup are two events that manage
to unite the world in unique ways. From the “ping-pong diplomacy” of the 1970s to the rapprochement
of the Koreas for the 2018 Winter Olympic Games, sports has proved to be a powerful instrument of
peace and progress. While nations cheer their athletes trying to out-perform their competitors, younger
generations get inspired to take on the task years down the road. This progress would not be possible
without the investment in organizing and broadcasting these games to all corners of the world.3
Additionally, according to World Intellectual Property Organization (WIPO), sports is an important generator
of economic value: The sports sector fuels job creation—especially high-skill, high-value jobs—and
stimulates a wide spectrum of economic activity.4 More specifically, the makeup of the sports sector as
defined in this report includes:
Teams and leagues: The economic value created by teams and leagues, stemming from selling tickets
•
at stadiums, hosting tournaments and championships, and merchandising. This economic value also
includes support for related food, beverage, and hospitality services that cater to sports fans
Broadcasting: The broadcasting industry that allows fans and enthusiasts to follow their teams
•
wherever they play
Sporting goods: The sporting goods industry, including manufacturers of bicycles, helmets,
•
tennis racquets, golf clubs, surfboards, and sports equipment generally, as well as manufacturers of
technology-based sports products such as electronic wearables, fitness trackers, apps, and software
Apparel and sportswear: The sportswear industry, including manufacturers of clothing, footwear,
•
and apparel
7
Table 1 gives a depiction of the makeup of the sports sector as defined in this report.
TABLE 1: MAKE-UP OF THE SPORTS SECTOR (AS DEFINED IN THIS REPORT)
Make-up of the Sports Sector

(as defined in this report)
SPORTS SECTOR
TEAMS &
BROADCASTING
LEAGUES
SPORTING APPAREL &

GOODS SPORTSWEAR
A recent study by A.T. Kearney estimates the global market for sporting events alone in 2014 at $80 billion,
with a forecast 7% growth rate.5 The value jumps to $700 billion when adding sporting goods, apparel,
equipment, and health and fitness spending, collectively estimated to contribute 1% of global GDP.6 In
short, the sports sector is a key economic engine and contributor to higher living standards.
Yet the role of IP rights in generating this value is often underestimated or missed entirely.
From world championships to regional, national and even local sporting events, IP rights play a key role
in the success and long-term viability of the sports sector. Sports is an intangible asset and IP rights
provide the legal protection to build economic value and stimulate interest and vitality in sports.
8
REPORT OVERVIEW
The purpose of this report is to provide an in-depth examination into the role of IP rights in the world
of sports. Developed economies have seen firsthand how IP rights have facilitated the rise of their
sports sectors, and the resulting economic growth and social well-being. Conversely, many emerging
economies express a clear aspiration to build a vibrant sports sector but struggle to gain the critical mass
needed to become world players.
Section 1 of the report examines the interplay between IP rights and the sports sector; a term used to
describe broadly all aspects related to sports. It also describes with more granularity how different IP
rights enable different parts of the sports economy, namely the practice of the sport itself; the existence
of teams and leagues that host sporting events, tournaments, and championships; the broadcasting of
such events, tournaments, and championships; and the economy around sporting goods, sportswear,
and merchandising. The section provides a number of case studies of sports-related products that
illustrate how specific types of IP rights spurred development and commercialization.
Section 2 documents the detrimental effects of IP infringement on the sports sector, looking at three
specific types of infringements and their economic impact:
a) physical counterfeiting of sporting goods and sportswear;
b) pirating of sports broadcasting events, with a specific focus on China and the Chinese Football
Association Super League; and
c) a new generation of piracy enabled by the proliferation of set-top boxes.
Section 3 provides concluding thoughts and ties together the data and information of the preceding sections.
9
1. IP RIGHTS AND SPORTS: A SYMBIOTIC RELATIONSHIP

1.1 MAPPING IP RIGHTS IN THE SPORTS SECTOR
There is virtually no sport that has remained unchanged since its inception; all have seen innovation and
growth. What has driven this progress? To a large extent, IP rights have provided the right incentives to
continuously inspire advancement in sports.
Different kinds of IP rights stimulate the growth of the sports industry in different ways. This section
examines how five important categories of IP rights (patents, trademarks, design rights, copyrights, and
trade secrets) are used in the sports sector to protect assets, generate value, and stimulate growth.
1.1.1 PATENTS
In a nutshell, the patent system is a contract between inventors and the public: In exchange for sharing
the details of how to make an invention, the government will prevent others from copying it for a period
of time—about 20 years in most economies—giving the inventor the opportunity to recoup investment
as the only source in the marketplace selling the invention. There are generally two kinds of patents:
utility and design patents (design rights, whether protected by patents or specific IP rights, are discussed
separately below).7 The former protects functional aspects of an invention, while the latter protects
the ornamental aspects. This system has proved to be a powerful incentive to innovate with a no less
important societal benefit of enhancing the common pool of knowledge and stimulating others to build
on and improve the current state of the art—setting a virtuous cycle in motion.
Sports is a sector that directly uses and benefits from the patent system. Sporting equipment is
continuously evolving. New technologies help athletes jump higher, swim faster, cycle longer, and hit a
ball harder and farther. Safety also improves with technologies that lessen impact and stress on athletes’
bodies. These technologies are a direct result of a patent system that offers proper incentives to innovate
and a stable platform to disseminate inventions and make them widely available in the marketplace.
There are literally tens of thousands of utility patents relating to sports. A search of the Google Patents
Public Datasets reveals hundreds of thousands of utility patents related to sports and making reference to
such terms as “athletic” or “athletes.”8 Table 2 provides a breakdown of the number of utility patents for a
selection of major sports.
10
TABLE 2: NUMBER OF UTILITY PATENTS GRANTED TO DATE ACROSS 17 SELECTED PATENT OFFICES
AROUND THE WORLD, SELECTED SPORTS CATEGORIES
Kitesurfing 14,224
Hockey 17,668
Polo 19,793
Soccer 28,779
Boxing 32,694
Baseball 44,468
Tennis 52,526
Skiing 110,501
Golf 112,256
Source: Google Patents; analysis: Pugatch Consilium
Case Study 1: The Waffle Trainer
Up until the 1960s, running shoes featured flat soles. The University of
Oregon’s running coach Bill Bowerman took on the task to improve traction
and shock absorption in training shoes. He experimented by using his wife’s
waffle maker to mold rubber spikes on the soles, and created a superior
running shoe he named the Waffle Trainer. The design revolutionized the
sneaker industry. Bowerman and one of his students, Phil Knight, founded Blue
Ribbon Sports, which eventually became Nike. Today, Nike has obtained
thousands of patents worldwide and now has a patent portfolio that rivals that
of many leading companies in the pharmaceutical, automotive, and defense
sectors, all traditionally research and development- and technology-intensive industries.9
The following subsections provide examples of how different parts of the sports industry are using patent
rights to drive their businesses and develop new sports-based products and technologies.
APPS AND WEARABLES
From footwear that senses running and fitness information, to belts tracking athlete performance, to smart
watches and rings with Global Positioning System (GPS) capabilities and accelerometers, a vast platform
of sports hardware is becoming more affordable and ubiquitous. The market for wearable devices is
expected to double in the next three years, from 125 million devices in 2017 to 240 million in 2021, with
the so-called smart clothing category growing at a 76% compound annual growth rate.10 Sales of smart
watches and wristbands are forecasted to jump from 70 million units in 2017 to 161 million units by 2021.
Utility patents are at the core of this wave of technology development. For example, Fitbit, the maker
of popular fitness trackers, has over 90 U.S. utility patents (issued and pending) describing different
technological aspects of the tracker.11 Multiple other utility patents are licensed to Fitbit as well. Figure 1
shows an example of a utility patent covering one aspect of a popular fitness tracker.
11
Figure 1: Wearable Heart Rate Monitor (U.S. Patent 14,292,669, Fitbit Inc.)
Figure 1: U.S. Patent 14,292,669

Wearable Heart Rate Monitor
Assignee: Fitbit Inc.
Source: Google Patents
With the advent of wearable technologies capable of tracking vital signs such as heart rate and burned
calories, a new related industry has emerged in the form of patentable apps designed to motivate and
help sports enthusiasts improve their training. In fact, this new industry and line of products—built on
the existence of the wearable devices—is projected to actually generate more sales than the devices
themselves. Figure 2 shows how the use of fitness apps is projected to grow faster than wearables over
the next six years.12 Without proper IP protection, however, the development and commercialization of
these new apps becomes virtually impossible.
12
Figure 2: Global revenue forecast for apps and wearables (in million USD)
Source: statista.com; analysis: Pugatch Consilium
ENERGY DRINKS AND SUPPLEMENTS
Innovation has been equally ubiquitous in the field of energy drinks and supplements designed to
help athletes perform better and rehydrate faster. A Google Patent search on sports energy drinks, for
example, yields more than 3,000 patents. One of the assignees of many of these patents is Gatorade,
invented by Dr. Robert Cade and three medical fellows in a University of Florida lab in 1965 to help
athletes restore electrolytes after intense physical activities.13 It is currently the most popular energy
drink, with a 52.8% market share in 2016 and sales of over $3.3 billion in the United States.14
THE WAY SPORTS ARE PLAYED
The way sports are played has also seen its share of technology development. New technology is being
used to help judges, umpires, and referees make close judgment calls. For example, Hawk-Eye’s goal-
line technology currently used in 18 different sports to determine if part of a ball has touched or crossed
a line in close calls.15 Similarly, there have been advancements with respect to sporting moves, methods,
and techniques such as placing a golf ball,16 fitness training17, training pitchers in baseball,18 and so on.
13
1.1.2 TRADEMARKS
Branding plays an essential role in creating value, interest, and vitality in sports. It drives consumer loyalty
and confidence in the quality and features of sporting goods. It also generates allegiance to sports
teams and sportswear styles. Trademarks work differently for goods and for services in the sports sector
depending on the product or asset being protected, but the common denominator is the distinctiveness of
the mark. Importantly, trademarks provide protection against confusion about the source of a given product.
The sports sector presents a unique opportunity to create a “domino effect” in trademark value creation.
Consider an individual athlete who becomes a dominant player in a team sport and develops his or her
own individual brand. The dominance of this athlete drives the growth and popularity of the athlete’s
team as well as the entire professional league in which he or she plays. There are numerous examples
of athletes who raise teams and entire sports leagues to national and even global prominence and
strengthen the brand and goodwill associated with both. This in turn creates business opportunities for
related sports industries, including for sporting goods manufacturers (apparel and shoes as well as sport-
specific gear) and broadcasters as television viewership and interest in the sport increase.
PERSONALITY RIGHTS
Celebrity athletes capitalize on their branding power to drive goodwill in sporting goods and sportswear
by developing their own product lines. These “personality rights” allow athletes to control the commercial
and economic exploitation of their personal attributes. Moreover, these rights have helped athletes
establish successful business endeavors, generating revenue long after their sports careers end. Sports
teams and associations have also leveraged these rights to build goodwill, attract new fans, and boost
their competitive edge.
BRANDING OF TEAMS AND LEAGUES
Branding has also become an essential asset and revenue producer for sports teams and clubs. From
a consumer’s perspective, branding is critical. Brands are indicative of quality and value. Significant
resources are invested in enhancing the goodwill of individual teams’ and sports leagues’ branding,
generally through community outreach and sports-related activities designed to pique interest in the
sport and inspire new generations of athletes. As such, teams become the pride of the host city or
economy, generate an allegiance among fans, and drive sales of products bearing their brands. An extra
layer of branding and goodwill comes from the leagues or sports organizations hosting tournaments and
championships among teams. Thus, sponsorship of sports events can link sponsors to the prestige and
allure of those events.
Brand value makes up a significant share of the overall value of sports teams and leagues. Although not
an exact science (from an accounting perspective, the estimated value of intangible assets including
goodwill and brand value is difficult to calculate), it is possible to quantify the brand value of sports
teams. For example, in its annual Fab 40 rankings, Forbes estimates the brand value of sports teams.19
According to Forbes, this is “the portion of [a sports team’s] enterprise value attributable to local revenue
streams like television, advertising, merchandise and tickets, that exceeds what a typical team in the
same sports generates.” Figure 3 lists the brand value of several sports teams according to Forbes.
14
Figure 3: Top 10 sports teams by brand value exceeding the average (in million USD), Forbes Fab 40 2017
Dallas Cowboys $896 million
New York Yankees $688 million
Los Angeles Lakers $595 million
Manchester United $564 million
Barcelona FC $537 million
New England Patriots $518 million
Real Madrid FC $510 million
New York Knicks $505 million
Boston Red Sox $458 million
Chicago Cubs $457 million
$0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1000
Brand value exceeding the average value generated from local revenue
streams by a typical team in the same sports category, in million USD
Source: Forbes; analysis: Pugatch Consilium
As teams become more successful, the value of their brands climbs. Similarly, as a sport becomes more
popular, the goodwill of the league or sport organization becomes stronger. A virtuous cycle is then set in
motion, in which better players emerge, improved stadiums are constructed, and more elaborate events,
tournaments, and championships can take place, enhancing the overall entertainment experience and
expanding the number of enthusiasts. This in turn leads to higher demand from fans for viewership, and
for merchandising bearing the brands.
1.1.3 DESIGN RIGHTS
An equally important IP right in the sports sector is aesthetics protected by design-specific IP rights.
Industrial designs are key to making a product attractive and desirable. Companies spend vast amounts
of resources on understanding consumers’ tastes and developing stylish and attractive product designs to
capture valuable market segments. These designs often become their most valuable assets.
Protection for design rights varies by jurisdiction. For example, Registered Community Designs (RCDs),
created in 1998 in the European Union, provide 25 years of protection to unique aesthetic features
designed to give a product “individual character” and make it stand out from the competition.20 An industrial
design has “unique character” if the “overall impression it produces on the informed user” differs from
previously known designs.21 In this regard, in 2011 the EU Court of Justice ruled in PepsiCo v. Grupo Promer
Mon Graphic SA that the “informed user” is more engaged than the average consumer in trademark
matters—i.e., “knows the various designs which exist in the sector concerned, possesses a certain degree
15
of knowledge with regard to the features which those designs normally include, and, as a result of his
interest in the products concerned, shows a relatively high degree of attention when he uses them.”22
Unlike the sui-generis nature of European RCDs, industrial designs are protected in the United States as
a subcategory under the U.S. Patent Act. The term of protection of U.S. design patents is 14 years from
date of issuance.23
Design rights (whether protected by patents or other forms of IP rights such as RCDs) are of growing
importance to creators around the world. While the Hague Agreement Concerning the International
Registration of Industrial Designs dates from 1925, an increasing number of countries are ratifying the
Agreement (a WIPO-administered treaty). For example, Israel passed a new design law (Designs Law
1176-2017) in 2017 that fulfills the conditions of the Hague Agreement. The new law increases the term
of protection from 15 to 25 years and strengthens enforcement and customs measures in Israel. Other
countries that have acceded to or ratified the Hague Agreement in the past year include the United
Kingdom, Russia, and Cambodia.
Case Study 2: Cycling Outside the Box24
In an effort to reduce back pain and injury after long bicycle rides,
Canadian cycling enthusiast Lucio Tortola developed a clever bicycle
frame that better absorbs shock. Tortola replaced the pole on which
the seat is mounted with a pair of parallel rings designed to dissipate
energy from the ground along its curved structure. In 2011, he
obtained a design patent, and three years later he obtained a utility
patent and trademarked the bicycle “RoundTail.” Tortola was able to
successfully leverage his IP assets by investing in strategic branding and collaborating
with established partners in the industry. Today RoundTail bikes are sold worldwide and
Tortola has received several prestigious design awards.
1.1.4 COPYRIGHTS
Copyright plays a critical role in maintaining the vitality of sports, keeping fans interested and inspired,
and enhancing value. The promotion and marketing of championships and sporting events, the artistic
designs of the logos of sports teams and sports competitions, the literature contained in game-day
programs sold to fans and supporters, the merchandise, and the software of computer and online games
are all copyrightable subject matter.
Revenues from broadcasting and media rights are often the main source of funds for sports organizations
to build stadiums, host sporting events, and carry out community outreach to maintain high levels of
interest.25 Major sporting events can now be streamed or broadcast anywhere in the world, giving
millions of fans the opportunity to participate in the excitement of an event.
Most countries have, either through specific legislation or through case law, established that the
broadcasting of a sporting event is copyrightable. For example, recognizing the significant economic
value in sports broadcasts, the United States enacted its own sui generis law, the Sports Broadcasting
Act of 1961, which regulates and protects the sale and distribution of sports media rights. There is also a
substantial body of U.S. case law on the extent to which sports broadcasting is protected by copyright.
16
Existing gaps remain, however, in key emerging markets such as China, where copyright law is currently
in flux and broadcasters still do not have the certainty required to invest significantly and leverage the full
potential of the markets (this example is discussed in more detail in Section 2).
As a result of recent advances in telecommunications and the internet, the value of broadcasting rights
has grown at an increasingly accelerated pace. Figure 4 shows the exponential growth in value of
broadcasting rights of the Olympic Games throughout its history.
Figure 4: Revenues from Olympic Games’ broadcasting rights (in million USD)
Source: International Olympic Committee; analysis: Pugatch Consilium
Other examples of rapid growth of rights can be seen in the broadcasting rights generated by individual
sports leagues. Most if not all of the major sports leagues around the world have seen substantial
increases in revenue from broadcasting rights.26
With strong and comprehensive copyright protection, these rights can be divided in multiple ways and
across multiple geographies to maximize the potential commercialization and revenue of the given sport.
Rights holders can license separately live broadcasting, webcasting, delayed broadcast/on-demand
streaming, and the packaging of highlights. This spiral of value generation results in better, and more
exciting and inspiring, sporting events, which brings more enthusiasts to the sport.
17
The 2014 FIFA World Cup illustrates the massive economic potential of copyrights generally, and
broadcasting rights specifically. The final match between Brazil and Germany was watched by an
estimated 1 billion fans, and despite it being played at 3:00 am local time in China, 30 million Chinese
viewers tuned in.27 Ninety percent of Dutch households watched the semifinal between Netherlands and
Argentina.28 Two years earlier, the International Olympic Committee estimated an audience of 900 million
for the opening ceremonies in London (4.8 billion viewers throughout the games), and almost 114 million
viewers tuned in for the 2017 Super Bowl.29
1.1.5 TRADE SECRETS
Sports also generates an important volume of trade secrets that play a key role in competitive advantage
and value creation. Teams gather proprietary information in the form of statistical analysis, scouting
reports, dietary regimens, physiological metrics, and psychological assessment techniques—all to gain
potential competitive advantage over their rivals. Sports gear often features secret new compounds and
materials to allow athletes to perform better. Companies invest heavily in elaborate focus groups to find
the right mix of features and designs to make their products more attractive and marketable.
In a way, trade secrets and patents/design rights are the two sides of the innovation coin. Patents
and design rights are the publicly known aspects of the invention, while trade secrets encompass the
undisclosed knowledge behind it. In exchange for disclosure (filing or registering at the patent or relevant
IP office), the inventor obtains a patent that prevents others from copying the invention for a period of
time. Conversely, there is no need to register trade secrets, and they can last indefinitely as long as the
information is kept confidential. But protection is much more limited; others are only prevented from
breaching the security measures in place. Moreover, competitors are free to independently develop
that very same invention. Hence the two sides of the innovation coin: elements of an invention subject
to reverse engineering are candidates for patent protection, while trade secrets can protect what is not
apparent from examining the product. Often patents and other registerable forms of IP rights are the
tip of the iceberg. The rest is knowledge acquired over time during many iterations of the development
process. Some inventions, like the secret syrup formula for Coca-Cola for instance, are difficult if not
impossible to determine how to copy and as such can be kept entirely secret indefinitely, as long as
measures are in place to ensure their security.
Trade secrets can take many forms in the world of sports, from proprietary information and processes
used by individual teams and leagues to techniques and business strategies used by sporting goods and
product manufacturers. Sports gear and equipment utilize undisclosed formulas, material, and processes,
so, for example, golf balls can be more aerodynamic or skateboards can be lighter and stronger.30 The
development process of new products and designs takes years of prototyping and testing that must be
kept secret to prevent tipping off the competition.
18
Case Study 3: Big Data—Big Deal
As teams look for every possible competitive advantage, a new frontier is being explored in the
field of data analytics. While extensive discussion of statistics is becoming a fixture, for example,
during Major League Baseball (MLB) broadcasts,31 behind the scenes, sports leagues and teams
know more than ever about their players from engaging in significant data mining and increasingly
complex statistical analysis of individual performance, mental sharpness, physical health, and
psychological profile.32
This so-called big data has been most prominently used in baseball, especially in MLB.33
Proprietary data analytics in baseball reached its climax when the Oakland Athletics managed to
reach the playoffs four straight years in a row in the early 2000s, when they prominently leveraged
statistical analysis of player performance and developed a unique set of strategies that exploited
inefficiencies of competitors’ assessment of their players.34 The event was re-created in the movie
Moneyball with Brad Pitt, based on the book The Art of Winning an Unfair Game by Michael Lewis.
Today every professional MLB team has its own proprietary analytics department based on
increasingly larger data sets that go beyond the traditional metrics of runs batted in, batting
averages, or pitchers’ win-loss records. With the help of wearable biometric tracking technology,
teams are also able to monitor their players physiologically, for example, managing team sleep
patterns to minimize fatigue,35 measuring stress on players’ joints and tendons,36 or following in
great detail the players’ moves to optimize their performance.37
Trade secrets are becoming more and more important for IP-intensive industries, including the sports
apparel and sporting goods industries. These industries quickly turn ideas into manufactured products,
with new product lines introduced annually or sometimes seasonally. For these innovators strong trade
secrets protection provides a nimble and necessary form of protection.
However, despite the role they play in IP-related economic activity (including sports), trade secrets
are not adequately protected everywhere. In 2014 the Organisation for Economic Co-operation and
Development (OECD) created a Trade Secrets Protection Index that measures key aspects for the
protection of trade secrets, including legal definitions of trade secrets, civil and criminal definitions,
existing remedies, and enforcement and registration requirements.38 Many key U.S. trading partners—
including Russia, Indonesia, China, and India—were in the bottom five of the index. And many countries
were found to have poor enforcement environments with large discrepancies between legal definitions
of trade secrets and the provision of legal remedies versus actual application and enforcement. On this
last aspect of enforcement environments, Indonesia, Thailand, and Turkey scored particularly poorly.
Similar results appear in the U.S. Chamber International IP Index, an empirical tool that ranks the IP
environment of economies by six categories: patents, copyrights, trademarks, trade secrets, enforcement,
and ratification of international treaties.39 In the trade secrets category, 33 out of the 50 economies
surveyed in 2017 do not have laws that protect this type of intellectual property, or at best have a
patchwork of laws relating to employment contracts and disclosure of confidential information.40
Trade secret protection is mandated by articles 39.1 and 39.2 of the Trade-Related Aspects of Intellectual
Property Rights (TRIPS) Agreement.41 Moreover, both the EU and the United States have introduced
new forms of protection for trade secrets in the past few years and are setting important international
19
benchmarks. In the United States, the Defend Trade Secrets Act was signed into law in 2016. This new
law introduces a federal right of action against misappropriation of trade secrets (on top of existing
state-level rights of action). Available remedies include damages for actual losses—with higher damages
for willful infringement—injunctive relief, and seizures (in extreme situations). Relief is also provided for
threatened misappropriation if there is clear evidence of a threat. The new framework aids in enhancing
protection of trade secrets across the United States. In the EU, the Trade Secret Directive sets common
minimum standards and a common trade secret definition for all member states. The directive also
introduces secondary liability claims and protection of confidentiality during legal procedures. As of the
date of this report, EU member states are amending their relevant national laws and regulations to be
fully compliant with this directive.
1.2 IP ASSETS IN THE SPORTS MARKETPLACE
The contribution of the sports sector to global economic growth is significant. In the United Kingdom, for
example, the value added of the sports sector is estimated to be 1.7% of GDP, with sports-related turnover
comparable to that of the automotive and food industries.42 In Australia, the sports sector contributes an
estimated 2% of GDP.43 In North America, the sports sector amounts to about 1.3% of GDP, and in 2016
generated roughly $266 billion.44 Similarly, the sports sector in the EU was valued in 2016 at $204 billion.45
A study commissioned by the European Commission concluded that in 2012 the contribution of the sports
sector and industries to the European economy was comparable to the shares of agriculture, forestry,
and fishing—combined.46 Globally, A.T. Kearny estimates the sports economy to contribute roughly 1% to
world GDP.47 It is worth noting that much of the value generated in the sports sector comes from mature
economies, which hints at the tremendous potential that lies ahead when emerging economies build their
IP systems to international standards.
What generates this value creation?
As suggested in the preceding subsection, an important shift in revenue source for athletes, teams, and
leagues is taking place. For example, looking at the North American sports market, Figure 5 shows that
stadium ticket sales are no longer the main source of revenue. Instead, media rights and sponsorships,
two segments wholly dependent on sports as an IP asset, are becoming the key drivers of value.
20
Figure 5: North America sporting events market by segment
Source: PwC 2017 Sports Outlook48
This change in market dynamics underscores the importance of IP rights for future growth in the sports sector
and the importance of developing the full commercial potential of the sports sector in emerging markets.
21
Case Study 4: Ditch the Workout, Join the Party
In the early 1990s, Colombia native Alberto “Beto” Perez emigrated to Miami penniless but with an
idea to make workouts more attractive and fun. With some seed capital, Perez produced a series of
fitness videos in which he choreographed dance and aerobic movements to the beat of energetic
music. He called it Zumba. His motto was “Ditch the workout, join the party.” Today, 15 million fans
take Zumba classes each week in over 200,000 locations across more than 100 economies.
Ten percent of Zumba Fitness’ 250-strong workforce is its legal staff, focused on enforcing its IP
portfolio of 60+ copyrights and 50+ trademarks and design patents.
The Zumba concept began to branch out into various modalities catering to different
demographics, apparel and footwear design, video games, and even cruise ship experiences.
Currently, Zumba Fitness has an elaborate licensing program for Zumba instructors with 20 different
levels of specialization and expertise. Zumba Fitness has agreements with national fitness chains,
including Curves, 24 Fitness, and LA Fitness, and partnerships with the American Council on
Exercise and LiveStrong.
Zumba Fitness’ IP footprint is the linchpin to its licensing prowess and its main source of revenue,
which is partly reinvested to create new and more exciting and motivating choreographies, many of
which are tailored to specific audiences such as children, seniors, and handicapped enthusiasts.
22
1.3 THE UNTAPPED POTENTIAL OF EMERGING ECONOMIES
The story of Zumba and “Beto” Perez exemplifies the enabling role that IP rights have in sports. The
Zumba concept was incubated, disseminated, and eventually expanded in large measure because of the
strategic use of IP rights and the development of an IP portfolio. Sports as IP and the ability to protect the
ideas behind Zumba catapulted Zumba Fitness from a local workout studio to a multinational endeavor.
But how many other Perezes are in his native Colombia, or in other emerging economies?
IP has become the de facto currency in sports-related business transactions. In economies with weaker
IP environments, creators lack a full platform to develop, disseminate, and profit from their ideas. For
example, of the 50 economies included in the 2018 edition of the U.S. Chamber International IP Index,
34 are considered emerging economies, 29 of which ranked significantly lower overall than mature
economies. Only Taiwan, Israel, South Korea, and Singapore ranked competitively with the mature
economies included in the study.49
Having examined how central IP rights are to the sports economy, this report now shifts focus to
counterfeiting and the infringement of sports IP. IP infringement and the inability to provide and enforce
sports-related IP rights is one of the biggest threats to the sports economy.
23
2. T
HE COST TO SOCIETY OF IP INFRINGEMENT OF
SPORTS-RELATED GOODS AND CONTENT
This section provides an in-depth analysis of three different case studies of IP infringement in the sports
sector and the resulting negative effects on consumers and economies:
1. The global impact of counterfeit sporting goods and sportswear
2. Piracy of live sports broadcasting: The impact on emerging economies; and
3. The threat of a new generation of piracy from set-top boxes
Whether by physical counterfeiting of goods or by pirating a live broadcast, sports IP infringement causes
substantial economic losses that reverberate across the entire sports sector. This section attempts to
delineate the two sides of the coin: on the one hand, estimating the economic losses and indirect impact
of sports IP rights infringements on society; on the other hand, showing what economies stand to gain
from providing adequate protection of sports IP rights.
2.1 THE GLOBAL IMPACT OF COUNTERFEIT SPORTING GOODS AND

SPORTSWEAR: TRADEMARK ZOOM-IN
2.1.1 THE POTENTIAL DANGERS OF COUNTERFEITING
Physical counterfeiting and trademark infringement entails the unauthorized use or application of an
existing trademark or brand to goods that were not intended to bear the brand. The TRIPS Agreement of
1994 provides a formal definition:
Counterfeit trademark goods shall mean any goods, including packaging, bearing
without authorization a trademark which is identical to the trademark validly registered
in respect of such goods, or which cannot be distinguished in its essential aspects
from such a trademark and which thereby infringes the rights of the owner of the
trademark in question under the law of the country of importation.50
The level of forgery or imitation of a counterfeit product can vary significantly in terms of quality, from
very poor, cheap imitations to products of close likeness to the original. For example, footwear and
apparel can mimic distinguished features of the brand and its logo but the materials and assembly are
generally of lesser quality.
The obvious and direct harm of counterfeits is to the originators. They lose income from the sale of
legitimate products. They also lose goodwill because of the poor quality of counterfeit copies, especially
among disappointed buyers unaware of the counterfeit. This undermines a brand’s integrity and can
result in significant revenue losses. In sum, IP owners sustain not only direct losses due to decreased
market share, but also damage to the brand’s reputation and dilution of the brand, along with costs
related to defending their rights.51
As important as the damage to genuine producers is the harm done to consumers and consumer
confidence. Counterfeiting today represents a tremendous and ever-increasing global threat. Counterfeit
products—ranging from consumer products, toys, and consumables to industrial parts and medicines—
circulate across the globe. These products cause real damage to consumers and can pose a serious
24
public health risk. For example, counterfeit automotive parts are often of very poor quality and lead
to failure with, for instance, brake pads malfunctioning and airbags failing to deploy or deploying and
releasing metal shrapnel. Similarly, counterfeit clothes and cosmetics can contain excessive levels
of dangerous chemicals.52 Counterfeit medicines may be composed of dangerous or contaminated
substances and sometimes do not contain an active ingredient at all; these medicines can be fatal or
cause serious medical problems.53 It is estimated that each year deaths resulting from counterfeit products
among the G20 economies bear an economic cost of over $18 billion, with an additional $125 million
spent on treating counterfeit-product-related injuries.54
Buying counterfeits also feeds an underground economy that is largely unregulated, adhering to
virtually no labor or environmental laws.55, 56 Counterfeiting represents relatively easy and fast funding
for organized crime, yielding as high as 900% profit margins.57 Moreover, counterfeiting is increasingly
linked to terrorist groups. Seizure records from Interpol and the FBI suggest that millions of U.S. dollars
in proceeds from counterfeit goods have been destined for terrorist organizations, such as Hezbollah
and Al-Qaeda.58
ONLINE MARKETS—THE NEXT COUNTERFEITING FRONTIER
More consumers are able to access and use the internet than ever before. In 2010 an estimated 28.8%
of the world’s total population ( just under 2 billion people) had access to the internet.59 By the end of
2017 this number had doubled to 4.2 billion internet users (or 54.4% of the global population).60 As more
consumers are able to access and use the internet, online shopping is growing in popularity. While still
smaller than brick-and-mortar shopping, e-commerce accounts for a growing share of total global retail
sales. In 2017 total e-commerce sales worldwide were estimated at $2.3 trillion, up by close to 25% from
2016.61 E-merchants and online platforms, such as E-Bay, Amazon, Alibaba, Mercado Libre, and others,
account for a growing share of global retail sales today.
As online shopping becomes more popular and widespread, so does the proliferation and sale of
counterfeit goods. For example, a number of online merchants are included in the United States Trade
Representative’s (USTR) annual Notorious Markets List. The latest edition of the list from January 2018
includes online merchants such as DHGATE.com, Indiamart, and Taobao.62 But few countries have in
place effective mechanisms to combat the increased sale of counterfeit goods through online auction
houses and merchants. There are private initiatives—such as e-Bay’s Verified Rights Owner Program—
through which online merchants employ measures to combat the sale of counterfeit goods.
There are also some examples of countries where relevant primary or secondary legislation includes an
obligation on the part of online merchants to take down IP-infringing material upon notification by a rights
holder. For example, in the EU principles and obligations were established with regard to the E-Commerce
Directive and online auction houses in the 2011 European Court of Justice case L’Oréal SA and others v.
eBay International AG and others, Case C-324/09. But overall the mechanisms in place are outweighed by
the sheer quantity of counterfeit goods available online. This is particularly the case in Asia. A significant
proportion of counterfeit goods in circulation globally emanates from China and Hong Kong. Seizure
data from U.S., EU, and Japanese customs authorities from 2010 to 2014 show that the percentage of
counterfeit goods seized coming from China or Hong Kong was overwhelming.63 China and Hong Kong
together were responsible for more than 86% of the import of counterfeit goods into the world’s three
largest markets (with a shared market value of nearly $2 trillion each year). Indeed, China’s share as the
economy of origin of counterfeit goods seized by the U.S. Customs and Border Protection increased from
12.5% in 1995 to 73.6% in 2005. Additionally, China’s share of counterfeit goods seized by EU Customs
and Japan Customs increased from 55% and 53.9% in 2008 to over 72% and 75.8% in 2013, respectively.64
25
2.1.2 COUNTERFEITING IN THE SPORTING GOODS AND SPORTSWEAR SECTORS
Consumers rely on innovative sporting goods to fulfill their functions at the highest level. This is particularly
so for more extreme activities, from skiing and downhill biking to surfing and diving, where failure due to
poor quality of materials or assembly may cost human lives. Counterfeiting of sporting goods and sportswear
also has a direct effect on leagues, teams, and professional and celebrity athletes, whose commercial
activities are harmed due to the substandard quality of the copies and resulting dilution of their brands.
Yet what is the actual impact of counterfeiting on the sporting goods and sportswear sectors? How much
counterfeiting is taking place and what is the cost?
This section attempts to estimate the global economic impact of counterfeiting on the sporting goods
and sportswear markets.
THE CHALLENGE OF MEASURING THE GLOBAL REACH OF COUNTERFEITING
Estimating the scope of counterfeiting and its economic impact on a global scale is highly challenging.
The illicit nature of counterfeiting—from manufacturing to distribution and sale—entails reliance on
customs seizure statistics and industry figures, which depend on dynamic success rates as well as on
the methods used for calculating the value of seized goods. As a result, while customs authorities seize
billions of dollars’ worth of counterfeit goods each year, these may well represent only a small fraction of
the actual number of counterfeit goods on the market.65
SPORTING GOODS AND SPORTSWEAR: DEFINITIONS
The sporting goods and sportswear sectors encompass numerous products that can be classified under
more than one category. Different estimations of market value for these sectors depend on the types of
products included, but these data are not always provided, particularly for the sportswear sector. In order
to estimate the global economic impact of counterfeiting on the sporting goods and sportswear markets,
this study relies on several different sources.
For sporting goods, this study relies on the definition provided by the European Office for Harmonization
in the Internal Market (OHIM),66 which includes the following categories:
• Hard, soft, and inflatable balls

• Rackets, bats, and clubs
• Skis, ski-boots, bindings, and poles
• Sailboards and surfboards
• Requisites for sport fishing, including landing nets
• Requisites for hunting, mountain climbing, etc.
• Leather sports gloves and sports headgear
• Basins for swimming and padding pools, etc.
• Ice skates, roller skates, etc.
• Bows and crossbows
• Gymnasium, fitness center, or athletic equipment67
In contrast, the sportswear sector is more broadly defined. It includes everything from clothing, footwear,
and accessories designed for workout and exercise to the wearable tech market—including “smart” wrist-
and waistbands and watches.68 As is detailed in the next subsection, this study utilizes two estimates of
26
the global market for sportswear, by Morgan Stanley and by Société General, which both look at clothing,
footwear, and accessories.69 Additionally, the study builds on an additional report by the OHIM that
provides an assessment of the impact of counterfeiting on the clothing, footwear, and accessories sector
in Europe, which includes the following categories:
• Clothing (including clothing in specialized stores)

• Footwear (including footwear and leather goods in specialized stores)
• Underwear and outerwear
• Other wearing apparel and accessories70
2.1.3 E
STIMATING THE GLOBAL ECONOMIC IMPACT OF COUNTERFEITING ON THE SPORTING
GOODS AND SPORTSWEAR INDUSTRIES
Over the years, several methods have been developed to meet many of the methodological challenges
described above, including the extrapolation of data from seizures by customs authorities, extensive
supply-and-demand surveys, and use of econometric multipliers.71 This study utilizes several methods
and available sources to piece together a general estimate of the global impact of counterfeiting on the
sporting goods and sportswear markets, using the following stepwise approach.
First, the overall global value of the sporting goods and sportswear markets is identified. Due to
differences in classifications, calculations, and methods of analysis, different sources cite varying
estimates with regard to the value of these markets.
• Looking at sporting goods, two recent reports by Macquarie Research and by Capitalmind estimate
the value of the global market at an average of €281 billion, or $351.5 billion.72 According to regional
estimates, the United States and the EU account for approximately 85% of global sales.73
• Looking at the global sportswear market, two recent reports by Morgan Stanley and by Société
General estimate the value of the global market at an average of $276 billion, with the United States
and the EU accounting for approximately 62% of global sales.74
Second, the magnitude of trade in counterfeit sporting goods and sportswear, its share of global sales,
is identified.
One established estimate for the magnitude of counterfeiting in the sporting goods market is provided
for the EU by a 2015 study carried out by the OHIM.75 The study revealed that in 2012 counterfeiting
of sporting goods resulted in the loss of nearly €500 million in sales of sporting goods within the EU,
amounting to 6.56% of total estimated sales of €7.5 billion. When considering the indirect impact on
related industries and services, the OHIM study found that losses increase to approximately €850
million. Thus, the direct impact of counterfeit sporting goods is established at 6.56% of sales, with the
total impact (direct and indirect) amounting to 11.4% of sales.
A similar estimate does not exist for the sportswear sector. However, an additional 2015 OHIM report
provides the same analysis of the impact of counterfeiting on the clothing, footwear, and accessories
sector in the EU. This study estimated the direct impact of counterfeiting on the clothing, footwear, and
accessories sector in the EU at 9.7%, with the total impact (direct and indirect) amounting to 16% of sales.76
Third, the estimated impact of counterfeiting on the global sporting goods and sportswear sectors is
extrapolated to the established baselines of these markets’ global value. Thus, the direct impact of
27
counterfeiting on the global sporting goods market is estimated at $23.05 billion, with the total impact (direct
and indirect) amounting to as much as $40.07 billion. Similarly, the direct impact of counterfeiting on the
global sportswear market is estimated at $26.77 billion, with the total impact (direct and indirect) amounting
to as much as $44.16 billion. A summary of the methodology used and results are depicted in Figure 6.
FIGURE 6: T
HE IMPACT OF COUNTERFEITING ON THE GLOBAL MARKET FOR SPORTING GOODS
AND SPORTSWEAR
Sporting goods $351.5 billion

Identifying the global
Step 1: value of the sporting goods
and sportswear markets
Sportswear $276 billion
Direct impact 6.56% of sales

Identifying the magnitude Sporting goods
of trade in counterfeit Total impact 11.4% of sales
Step 2:
sporting goods and Direct impact 9.7% of sales
sportswear Sportswear
Total impact 16% of sales
Estimating the impact of Direct impact $23.05 billion

Sporting goods
counterfeiting on the global Total impact $40.07 billion
Step 3: sporting goods
and sportswear markets Direct impact $26.77 billion
Sportswear
Sporting goods Total impact $44.16 billion
Sources: Macquarie Research, Capitalmind, Morgan Stanley and Société General, Office for
Harmonization in the Internal Market (Trade Marks and Designs) (OHIM)
It is important to note that while the actual value of economic impact may be lower or higher than these
estimates, the economic losses are substantial. As such, this is a clear indication of the magnitude of
physical counterfeiting within the sporting goods and sportswear industries and of the severe and
detrimental impact it has on these industries.
Furthermore, counterfeiting in these markets has an extended economic impact on national budgets and
government tax receipts.77 According to the OHIM studies, these losses of government revenues amount
to as much as €1.9 billion, or $2.4 billion, each year within the EU alone.78
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2.2 P
IRACY OF LIVE SPORTS BROADCASTING IN EMERGING ECONOMIES:
A BARRIER FOR NATIONAL SPORTS DEVELOPMENT
2.2.1 PIRACY OF LIVE BROADCASTING OF SPORTS EVENTS: A GLOBAL CONCERN
As documented in the preceding section, live broadcasting of sporting events is one of the most valuable
sports commodities. Given the increasing fragmentation of entertainment and wide selection of television
and online offerings, live sports is one of the few forms of entertainment in which advertisers are able
to reach a true mass audience. Indeed, the biggest sporting events of the year are prime events for
advertisers. For example, the U.S. National Football League’s main event—the Super Bowl—attracted some
114 million viewers in 2017 and a 30-second slot of advertisement cost about $5 million on average, over
$166,000 per second.79 Media rights increasingly represent the fastest-growing segment of the sports
market. As mentioned above, in North America this segment is projected to grow by a compound annual
growth rate of 4.3% by 2021 and to account for nearly 30% of all sports market revenues by 2021.80
But piracy—the unauthorized streaming of live broadcasts of sports events—undermines the revenue
potential that broadcast rights offer, and stunts the growth of the sports sector. A recent BBC survey
revealed that in the United Kingdom more than a third of English Premier League (EPL) viewers are
watching live matches via unauthorized streaming websites.81 Similarly, the recent professional boxing
match between Floyd Mayweather Jr. and Conor McGregor is estimated to have been viewed illegally
by some 3 million viewers (including through social media platforms such as Facebook), generating
estimated revenue losses of $250 million.82
Yet identifying and fighting piracy of live broadcasts of sports events is very difficult. Take for example the
multimillion-dollar site LiveTV.sx, which streams pirated sports events complete with banners and pop-up
ads. The site, the 1,750th-most-popular website in the world, is administered in Panama with a domain name
registered in the Caribbean by a Kazakh national.83 A 2011 report identified tens of thousands of websites,
peer to peer filing file sharing networks, and unicasts illegally streaming live broadcasts of sports events.84
2.2.2 THE PIVOTAL ROLE OF ROBUST COPYRIGHT PROTECTION IN PROMOTING SPORTS
Piracy of live broadcasting of sports events exists in most economies today, and governments around
the world are increasingly becoming cognizant of the need to address this rapidly growing illicit activity.
Action campaigns and initiatives in developed and developing economies alike have resulted in the
blocking of thousands of piracy websites, and in some instances even criminal charges.85
Rampant and unrestrained, sports broadcasting piracy impacts not only the holders of broadcasting
rights, but also the national sports environment as a whole, as revenues from subscriptions are reflected
in deals on broadcasting rights between leagues and broadcasters, which in turn enable broadcasters to
provide increased access to more national and international sporting events.
Thus, in the fight against piracy of sports broadcasting, the existence and enforcement of IP rights is
critical. In countries where the IP regime is weak, the national sports environment is missing out on
essential income that could develop and promote it further.
This section focuses on China as a case study, examining how gaps in its current IP framework hinder
its abilities to effectively fight piracy of sports broadcasting and stifle the development of the national
league of its most popular sport: soccer.
29
2.2.3 PROMOTING THE NATIONAL SPORT THROUGH BETTER IP PROTECTION: THE CASE OF CHINA
China is currently poised to be the next frontier in sports. Fueled by the sheer size of demand, from 0.6%
of its GDP in 2014 to 0.7% in 2015, the Chinese sports sector is rapidly growing. Sporting goods industry
sales in China grew at a rate of 11%, amounting to $28.4 billion in 2016.86
China’s growing interest in sports is in no small part a result of strong government support for building this
sector. In 2016 the Chinese government announced its National Fitness Program for 2016–2020, aimed
at increasing the domestic sports market to RMB5 trillion ($722.5 billion).87 The government also issued
the “Chinese Football Mid-to-Long-Term Development Plan (2016–2050)” aimed at developing a national
team capable of winning a FIFA World Cup.88 The plan includes the establishment of 20,000 soccer
academies and 70,000 soccer fields nationwide. Since then, the Chinese Football Association Super
League (CSL)—the top national league for soccer, consisting of 16 individual clubs—has strengthened its
lineups with foreign players at a total sum of $417 million.89 As a result, attendance at CSL matches has
increased from some 10,000 fans in 2004 to over 24,000 in 2016 on average, with top matches seeing an
increase from 20,000 fans in 2008 to 45,000 fans in 2016.90
But China’s IP system is still in flux, especially its copyright laws with respect to the broadcasting rights of
sports events and capacity for effectively fighting high rates of piracy. This subsection examines the impact
of piracy on Chinese holders of sports broadcasting rights, and the potential gains of strengthening the IP
environment through stronger enforcement of and clearer protection for broadcasting rights.
TO COPYRIGHT OR NOT TO COPYRIGHT?
From a copyright perspective, the live broadcasting of sports events consists of two distinct elements:
the sporting event itself and its live broadcast. The first is generally not regarded as a “creative work
of authorship” and is therefore excluded from copyright protection as such. The second, however, is
generally protected. Under the Rome Convention of 1961, broadcasters are provided with exclusive rights
for a term of 20 years for communication to the public through reproduction, “fixation” (recording), and
rebroadcasting.91 As mentioned, attaching copyright to sports broadcasts is recognized and codified in
many economies. For example, in the United States the live broadcasting of sports events involves the
“fixation” of an audiovisual work and is therefore eligible for copyright protection. Similarly, in Australia the
transmission of the signal in itself entitles copyright protection for the broadcast, regardless of the “work.”92
However, Chinese copyright law is not clear on live broadcasting. Within China’s Copyright Law, under
article 46, a broadcaster is required to obtain permission and compensate the producer and copyright
owner only for “a cinematographic work or a work created by a process analogous to cinematography,
or a video recording produced by another person.”93 There is no specific reference to the broadcasting
of live sports. As a result copyright protection for live sports is very much left to case law, which so far
has not been consistent. For example, in 2013 the Shanghai No. 1 Intermediate People’s Court ruled
that the Asian Cup China versus Uzbekistan soccer match was not copyrightable, citing the exclusion
of live sports broadcasting from copyright protection under Chinese law.94 However, in 2015 the
Chaoyang basic level court in Beijing ruled that streaming live CSL matches was copyrightable, ordered
the shutdown of accused infringing websites, and awarded damages of RMB500,000 ($73,000).95 The
court acknowledged that the broadcast of the live CSL match consisted of a composition of fixed and
unfixed cameras as well as replays and close-up shots, etc., the formation of which represents a creative
endeavor of the director and can therefore be viewed as meeting the criteria of originality, thereby
constituting a copyrightable work.96 While this recent ruling marks a positive development, codifying the
broadcasting rights in legislation would provide even more clarity.
30
From an enforcement perspective, in order to effectively combat piracy, rights holders should have
an adequate recourse mechanism for seeking redress in the form of swift and effective relief. While
injunctive relief is available, the Chinese Special IP Courts are generally reluctant to provide such
relief, with only 27 injunctive reliefs granted from some 90,000 civil IP cases before the Chinese courts
in 2012.97 However, piracy of live sports broadcasting necessitates swift action, with preemptive or
simultaneous blocking of pirated websites.98
The negative impact of China’s weak IP environment can be seen on the ground, specifically in its
domestic sports leagues. The next subsection provides a case study analysis of the domestic soccer
league, the CSL. Specifically, it examines how China’s IP environment is shaping the commercial
prospects of the CSL.
CSL ZOOM-IN: IS A WEAK IP ENVIRONMENT HOLDING BACK CHINESE SOCCER?
From a broadcasting rights perspective, China is experiencing the growth that one would expect from
one of the largest and fastest-growing economies in the world. Over recent years, broadcasting rights of
major sports leagues, tournaments, and championships have been purchased for billions of dollars.99 For
example, there are some 200 million fans of the EPL in China, and NBA attracts some 700 million viewers
throughout its season.100 The domestic leagues too are gaining in popularity: During the 2016 season, the
CSL had an estimated 500 million viewers.101
Yet there is a striking difference between the revenues of Chinese rights holders for the sale of their
broadcasting rights and the revenues of rights holders in mature economies. Within mature economies
like the United States and Europe, TV and digital subscriptions constitute an average of 50% of the
total revenues of rights holders.102 This is the case for broadcasters such as ESPN, Eurosport, and Sky
Sports.103 In contrast, Chinese broadcasters receive a considerably lower 9% of revenues from TV
subscriptions.104 Looking specifically at the CSL (whose 2016 matches as noted above were viewed by an
estimated 500 million people), only RMB80 million ($12.66 million) originated from paid subscriptions.105
This was only 3% of the CSL’s total revenues of RMB2.5 billion in 2015 ($395 million).
TABLE 3: R
EVENUES FROM TV AND DIGITAL SUBSCRIPTIONS OF THE CHINESE SUPER LEAGUE
COMPARED WITH ESPN AND EUROSPORT
LeTV (CSL) ESPN Eurosport
Subscription revenues $12.66 million $7.6 billion $311.25 million
Total revenues $395 million $14.8 billion $622.5 million

Subscription revenues’
3% 51% 50%
share of total revenues
Sources: CNStock News;106 Forbes;107 Discovery Communications;108 Sportcal.109
The low percentages of revenue stemming from subscriptions in China are not explained solely by
Chinese viewers’ purchasing power and level of disposable income.
Instead, online piracy appears to be the main reason for the considerably lower percentages of revenue
stemming from subscriptions in China. Much of the inherent value of a sports broadcast is its immediacy;
31
replays and match highlights have by comparison more limited value to sports fans and consumers. With
easy and usually free access to pirate websites illegally streaming live sports broadcasts, Chinese sports
consumers have no incentive to pay for a subscription, despite its relatively low cost.110
A recent survey covering Chinese soccer fans ages 25 to 50 revealed that 62% are reluctant to pay
for viewing CSL matches, and only half of the remaining 38% are willing to pay more than RMB5 ($0.8)
per match.111 Thus, the wide prevalence of easily accessed pirated content substantially limits the CSL’s
revenue potential. Indeed, despite efforts to combat online piracy and the shutdown of thousands of
websites and links leading to copyright-infringing content,112 sports broadcasting piracy is still rampant in
China. For example, according to statistics from China’s public broadcaster CCTV, an average of 30% of
viewership of the 2016 Olympic Games was through unauthorized streaming, and an average of 45% of
viewership of the 2014 FIFA World Cup was through unauthorized streaming on mobile apps.113 While the
rights holder for the FIFA World Cup threatened legal action against infringers, no progress was made,
reportedly due to the uncertainty involving copyright protection for live sports broadcasting in China.114
As suggested above, although subscription revenue remains low, the CSL’s popularity is growing.
The number of fans attending CSL matches (and the associated increase in gate revenue) grew at a
compound annual growth rate of 8.6% between 2006 and 2016.115 A recent report by Nielsen Sports
shows that interest in soccer is experiencing steady growth in China, with nearly a third of the population
ages 16 to 59 interested in the sport.116 Additionally, the paid subscription model for viewing live sports
broadcasting is gaining momentum in other leagues. For example, both the NBA and the EPL seasons
are now offered in full only via paid subscriptions, with a limited number of “high-profile” matches
broadcast via the public broadcaster.117
32
2.3 S
ET-TOP BOXES: A NEW BATTLEGROUND IN THE FIGHT AGAINST SPORTS
BROADCASTING PIRACY
2.3.1 SET-TOP BOXES: INTRODUCING “LEAN-BACK” PIRACY
While earlier generations of pay-TV and internet piracy required technical expertise and resources,
current “plug-and-play” set-top boxes are sold very inexpensively. Through pre-loaded software (“fully
loaded”) or specific add-ons acquired through a simple internet search, they enable free access to
copyright-protected content at the click of a mouse.118
Figure 7: Example of a currently available “fully loaded” set-top box
The fully loaded set-top box depicted in Figure 7 is offered for £35 ($49), promising free access to sports
channels such as Sky Sports, BT Sports, and ESPN, when connected to the internet.119 This plug-and-play
setup allows consumers to illicitly intercept sports broadcasts of their choice effortlessly. Often, the electronic
interface of a pirated set-top box mimics the user experience provided by legitimate cable companies so
well that the users are not aware of their copyright-infringing actions.120 These set-top boxes are creating
a new battleground of online piracy that is even more challenging to counter than its predecessors.
The following subsections provide a discussion of the scope and extent of the impact of this new
generation of online piracy of the live broadcasting of sports events, and recent measures taken to
combat this threat.
33
2.3.2 THE IMPACT OF SET-TOP BOX PIRACY ON LIVE SPORTS BROADCASTING
As with any illicit activity, the providers of set-top box piracy services are not a web version of Robin Hood:
Most of these services provide unauthorized access through paid subscription at prices not much different
from legitimate providers.121 Their business models also rely on advertising, except nearly 66% of advertising
promotes malware, scams, and online gambling.122 Sellers of fully loaded set-top boxes—through dedicated
websites and physical stores—form an additional part of the circle of illicit service providers, as seen in Figure 8:
Figure 8: The economic cycle of set-top box piracy
Pirated set-top
box seller
One-time Sales
payment commission
Unauthorized
Monthly
End user streaming service
subscription
provider
Pirated Recurring
streaming payments
Video hosts
Source: Sandvine, Video and Television Piracy: Ecosystem and Impact, 2016; analysis: Pugatch Consilium
As discussed above, revenues from sports events are generally divided into four distinct categories:
1. media rights (including subscription fees),
2. advertising,
3. commercial sponsorship, and
4. merchandise.
Piracy of sports broadcasting weakens the revenues generated from legitimate subscription fees and
advertising. Fully loaded set-top boxes are advertised as “cord-cutters,” freeing the viewer from all cable
subscription fees—though for viewing live sports broadcasts, a monthly subscription is usually required,
ranging between $20 and $60 on average. According to recent industry estimates, 500 set-top boxes
purchased at roughly $20,000 can generate annual revenues of over $170,000–7.5 times their original
cost—just from subscriptions, sold at an average of $390 per year.123
34
2.3.3 MEASURING THE MAGNITUDE OF SPORTS BROADCASTING PIRACY
As for counterfeiting, the magnitude of piracy of sports broadcasting can only be estimated. One major
reason, in addition to the illicit nature of all counterfeiting and piracy activities, is the fact that set-top
boxes and some of the software on which they operate (such as Kodi) are legitimate products. Their
modification into fully loaded set-top boxes is what makes them illegal. Tracking the purchases of such
boxes—and more so identifying the exact rate of piracy of sports broadcasting via modified set-top
boxes—is difficult.
Yet, there is enough evidence (including survey data) that suggests the scale and cost of this
infringement both generally and for specific sports.
For example, a study by the Canadian-based networking company Sandvine finds that an estimated
6.5% of North American households subscribed to TV piracy services, resulting in the loss of an
estimated $4.2 billion each year in subscription revenues.124 Reports in the United Kingdom suggest
online piracy reaches levels of 25%–30%, with more than 1 million pirated set-top boxes purchased
during 2016–2017.125 In emerging markets such as China and Vietnam, the number of paid subscriptions
to pirated content streaming services is estimated to outnumber the number of subscribers to legal
services by 10 to 1 and 15 to 1, respectively.126
While these figures provide an estimate of the impact of online piracy on all TV broadcasts in general,
given the popularity of live sports, it can be assumed sports broadcasts make up a significant share
of these overall piracy numbers. Indeed, according to Nielsen, sports broadcasting accounts for 93 of
the top 100 TV programs viewed live in 2015, with viewers across the world spending 31 billion hours
watching sports on TV that year.127
Evidence from individual economies also suggests that pirated live sports is a huge part of pirated content
online. Survey evidence from the United Kingdom suggests that visits to sports piracy sites have increased
by 20%, from 100 million visits in September 2015 to 120 million in September 2016.128
Looking at a bigger set of economies, additional survey evidence suggests that pirated live sports
broadcasting is indeed among the most attractive content for consumers. Figure 9 shows the results
from a survey by Irdeto that found that 10%–25% of consumers placed pirated live broadcasts of sports
within their top three interests.
35
Figure 9: Share of consumers most interested in viewing pirated live broadcasting of sports
30%
25%
20%
15%
10%
5%
0%
Po Eg Gu U. Ita Tu Ge Po Ind Au
rtu yp Co lf C K. ly rke rm la ia stri
ga t un oo y an nd a
l cil p er y
ati
on
Source: Irdeto, 2017; analysis: Pugatch Consilium
The widespread availability of illegal sports content and the growing number of consumers willing to
make use of this content are having a sustained negative impact on legitimate sports broadcasting. In
many countries pirated streaming is so widespread that legitimate viewership of live sports broadcasts
is declining.129 According to a study by YouGov U.K., more than 800,000 people in the United Kingdom
have canceled at least one legal subscription service and are instead opting for pirated content.
Ominously, many respondents with legal subscriptions stated they planned to make a similar switch in
the future.130 Of note is that this activity is primarily driven by a younger audience. In fact, a recent survey
conducted in the United Kingdom revealed that more than half of all respondents ages 18 to 24 admitted
to regularly watching pirated live broadcasts of sports events compared with only 4% of respondents
over age 35, and younger viewers are half as likely to purchase a paid subscription for live broadcasting
of sports compared with older viewers.131
36
2.3.4 COUNTERING SET-TOP BOX PIRACY OF SPORTS BROADCASTING: A DEVELOPING FIELD
Governments, enforcement authorities, and rights holders are becoming more cognizant of the negative
impact illegal streaming is having and are taking action. The English Premier League has launched an
aggressive campaign against unauthorized streaming of its matches. As part of this campaign, the league
obtained preliminary injunctions in the form of a High Court Order requiring an immediate blocking of
Internet Protocol addresses that provide unauthorized streaming of its matches in real time.132 In other
words, the EPL can detect and instantaneously block illicit Internet Protocol addresses without the direct
intervention of a court. According to the EPL, the injunction has led to the blocking of 5,000 Internet
Protocol addresses that streamed pirated broadcasting.133 The EPL is also taking action against set-top
box piracy, working to identify individuals involved in the selling of fully loaded set-top boxes. This has
led to enforcement raids in the United Kingdom, Ireland, and Spain, and arrests and substantial fines.134
More broadly, the European Union’s Court of Justice (EUCJ) has recently ruled in favor of the Dutch anti-
piracy group Bescherming Rechten Entertainment Industrie Nederland or Association for the Protection of
the Rights of the Entertainment Industry of the Netherlands (BREIN) against a Dutch individual who sold fully
loaded illicit set-top boxes online. The EUCJ found that “temporary acts of reproduction, on that multimedia
player, of a copyright protected work obtained by streaming on a website belonging to a third party offering
that work without the consent of the copyright holder, cannot be exempted from the right of reproduction.”135
While the selling and possession of a set-top box in itself is legal, a fully loaded set-top box, pre-installed with
software that enables the streaming of pirated content, is now illegal under this new ruling.
Similarly, a Canadian Federal Court recently issued an injunction against sellers of pre-loaded set-top
boxes advertised as “Cable Killers” for causing irreparable harm to copyright holders. This injunction was
made possible by a recent amendment to the Canadian Copyright Act that introduced “services” that act
as infringement of copyrights.136
These landmark cases against set-top boxes have reverberated around the world. Earlier this year, a
group of rights holders sued two local sellers of fully loaded set-top boxes in Singapore.137 In April 2017,
retail giants Amazon and eBay officially banned the selling of fully loaded set-top boxes.138 A month
later Facebook updated its policy terms to include a ban on selling “devices that facilitate or encourage
streaming digital content in an unauthorized manner.”139 In addition, the developers of Kodi, one of the
most popular open-source media players for running set-top boxes, launched a campaign denouncing
online piracy via modified set-top boxes and sellers who use the term “Kodi boxes” and “fully loaded set-
top boxes” interchangeably.140
37
3. CONCLUSIONS AND FINAL THOUGHTS

The purpose of this report has been to examine the centrality of IP rights to the sports economy. While
sport is not often discussed in economic or commercial terms, sport is the quintessential intangible asset.
At their core, IP protections and incentives allow industries and individuals to prosper in their pursuit of
innovation and brand development. This creates a synergistic and reinforcing effect. The development
of new technologies strengthens a given brand; the strengthening of a given brand leads to the
development of new technologies and products, which in turn further strengthens the brand. Additionally,
the popularization of a given sport leads to the development of related industries and technologies.
Think of wearable fitness devices, which have led to the creation of a whole new sub-industry of
app development. Similarly, there is a powerful symbiosis between individual players, their sports,
their teams, the respective leagues, and related industries, including branding, sporting goods, and
sportswear. The success of one part of this ecosystem leads to potential commercial opportunities and
the development of new products and services for all related industries.
Yet each layer of this economy and each related industry requires an individual layer of IP protection
to thrive and develop.
A modern sports economy—just like any high-tech, IP-dependent sector—requires a full menu of IP rights
and incentives. This allows individuals and businesses maximum protections and incentives to create,
innovate, and commercialize their IP assets. Only once these fundamentals are in place can a modern
sports economy thrive and reap the accompanying socio-economic benefits. Absent this enabling
environment, sports may still exist, but will be confined to small-scale, primarily noncommercial activities—
the proverbial game in the park rather than the game in the stadium watched by millions across the world.
Four key findings come out of this report.
Key finding 1: The modern sports industry depends on and cannot exist without
IP rights.
Innovation is present in every sport. Yet sports cannot become a commercially productive asset
without IP rights and incentives. Patent-protected inventions drive improvement in sporting equipment,
including sportswear and footwear. Broadcasting rights are the foundation for investment in transmitting
tournaments to fans and sports enthusiasts. Trademarks protect the goodwill of events, leagues, teams,
and manufacturers of sporting goods. Licensing and merchandising agreements generate the revenues
needed to take sports to higher levels of productivity. The sports economy is an instructive case study of
how an IP asset becomes a platform for economic activity and related industries.
Key finding 2: A modern sports industry requires a broad menu of IP rights to thrive.
Traditionally, sports has been associated with two main IP rights: copyright and trademarks. But this
report finds that this traditional view is a limited view of how sports industries use IP rights. Copyright and
trademarks are still foundational to various subsectors (e.g., broadcasting, apparel, brand value) but the
use of other types of IP rights to protect content/creation is significant. For example, the rise of enhanced
technologies yields more research-driven innovative sporting products. In turn, these products require
strong patent protection. There are literally tens of thousands of utility patents relating to sports. A search
of the Google Patents Public Datasets (a patent database aggregated from 17 patent offices around the
world) reveals hundreds of thousands of utility patents related to sports and making reference to such
38
terms as “athletic” or “athletes.” Many sporting goods companies are also technology companies with
broad patent portfolios. Similarly, the growth of the internet and globalization of sports—with international
viewership of domestic leagues growing exponentially—necessitate clear and strong broadcasting
rights. Revenues from broadcasting and media rights are becoming the main source of revenue for
sports organizations (including leagues and individual teams) to build stadiums, host tournaments and
championships, and carry out community outreach to maintain and grow public interest in their sport.
To build a modern, successful sports economy, countries must provide a broad menu of IP rights.
Key finding 3: Physical counterfeiting poses a real threat to the sports industry and
to consumers.
Counterfeit sporting goods and sportswear have a substantial and detrimental impact on economies—
depriving leagues and athletes of economic gains, damaging brand integrity and consumer confidence,
and resulting in loss of legitimate jobs. Given the rise in online shopping, with rates of e-commerce
increasing by double digits annually, levels of counterfeiting are growing exponentially. This study
estimates that the direct economic impact of counterfeiting on the global sporting goods and sportswear
markets is almost $50 billion each year. When accounting for the indirect effect on related services, the
overall impact of counterfeiting is an estimated $84 billion each year.
Key finding 4: Online piracy of sports broadcasting is mushrooming, but

governments struggle to keep up with the threat.
Unauthorized streaming services and websites for pirated sports broadcasting are operating by the
thousands. Ubiquitous and cheap “plug-and-play” set-top boxes are providing free access to sports
broadcasts at the click of a mouse. The fast proliferation of broadcast piracy is a major concern, as it is
stunting growth of subscription fees and advertising, estimated at dozens of billions of dollars each year.
For example, in China online piracy is stifling of its domestic soccer league (Chinese Football Association
Super League). Specifically, despite growing consumer interest and match attendance, league revenue
from paid subscription amounts to less than 10% of overall revenue; this compared with 50% in mature
markets. While in mature markets governments and key stakeholders like Amazon, eBay, and Facebook
are taking steps to combat the threat posed by piracy, emerging economies are still struggling to define the
scope of their copyright laws and are unable to take swift action to shut down sources of pirated content.
39
ENDNOTES
1

https://www.un.org/sport/node/203631
2
Ban Ki Moon address at the 2nd International Forum on Sport, Peace and Development in Geneva, May 2011,
http://www.un.org/apps/news/story.asp?NewsID=38342#.WkZPyt-nGU.K.
3
For example the 2014 FIFA World Cup™ reached 3.2 billion viewers. http://www.fifa.com/worldcup/news/y=2015/m=12/
news=2014-fifa-world-cuptm-reached-3-2-billion-viewers-one-billion-watched--2745519.html
4
http://www.wipo.int/ip-sport/en/. In China, for example, 3.38 million people were involved in some 311 sports events
from Jan to April this 2016, spending 1.7 billion U.S. dollars in traffic, communications, hotels, catering, and other services.
http://news.xinhuanet.com/english/2016-12/23/c_135928065.htm.
5
https://www.atkearney.com/communications-media-technology/article?/a/winning-in-the-business-of-sports.
6
Id.
7
In some economies there are additional types or variations on patent protection including, for example, utility model protection
and the “innovation patent” in Australia. These forms of protection are usually for more limited time periods (protection for utility
models are for instance usually around 10 years) with the requisite requirements for obtaining protection much less extensive
than for patents. See: WIPO, Protecting Innovations by Utility Models, (Accessed March 2018):
http://www.wipo.int/sme/en/ip_business/utility_models/utility_models.htm
8
Google Patents Public Dataset is a search engine unveiled by Google on October 2017 that indexes more than 87 million patents
and patent applications (both utility and design) from patent offices in Belgium, Canada, China, Denmark, EPO, Finland, France,
Germany, Japan, Luxembourg, Netherlands, Spain, South Korea, Russia, U.K., USPTO (since 1790), and WIPO (since 1978). The
data produced by Google Patents is from the respective patent offices, not from Google Patents itself. See
https://cloud.google.com/blog/big-data/2017/10/google-patents-public-datasets-connecting-public-paid-and-private-patent-data.
9

https://www.investors.com/news/a-nike-apple-watch-an-under-armour-baseball-line-patents-hold-secrets/
10

https://www.forbes.com/sites/paullamkin/2017/06/22/wearable-tech-market-to-double-by-2021/#61971fad8f3e
11

http://appft.uspto.gov/netacgi/nph-Parser?Sect1=PTO2&Sect2=HITOFF&u=%2Fnetahtml%2FPTO%2Fsearch-adv.
html&r=0&p=1&f=S&l=50&Query=an%2Ffitbit&d=PG01
12
Includes Fitness wristwear equipped with sensors, activity trackers that measure and analyze the physical activity and body
functions, smart clothes or eyewear that measure body functions, fitness and nutrition apps for detecting /tracking/ analyzing
and sharing vitality and fitness achievements, desktop versions of fitness applications that additionally provide apps. See
https://www.statista.com/outlook/313/100/fitness/worldwide#
13

https://www.gatorade.co.nz/history/
14

https://www.statista.com/topics/3051/sports-drinks/
15

https://www.hawkeyeinnovations.com/products/ball-tracking/goal-line-technology
16
U.S. Patent No 5,616,089.
17
U.S. Patent No 6,190,291
18
U.S. Patent No. 4846471A
40
Brand values as reported by Forbes Fab 40. The Forbes Fab 40 quantifies brand value using a proprietary database and methodology.
19
See: M Ozanian (2017) “The Forbes Fab 40: The World’s Most Valuable Sports Brands 2017”, Forbes, Forbes Fab 40: Teams

20
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:31998L0071:EN:HTML
Id.
21
PepsiCo Inc. v. Grupo Promer Mon Graphic SA, Case C-281/10P, EU Court of Justice (Fourth Chamber) 2011,
22
http://eur-lex.europa.eu/legal-content/EN/ALL/?uri=CELEX:62010CJ0281.
Journal of Intellectual Property Rights, Vol 19, May 2014, pp 223-228.

23
http://www.wipo.int/ipadvantage/en/details.jsp?id=3110
24
At the Gate and Beyond, Outlook for the sports market in North America through 2021, p.3., PwC 2017.
25

26
https://www.huffingtonpost.com/entry/just-admit-the-nba-deal-is-screwing-you-espn_us_58d98250e4b0e6062d92300f
Id.
27
Id.
28

29
http://www.independent.co.U.K./sport/olympics/news/london-2012-opening-ceremony-audience-hit-900-million-predicts-
ioc-8015361.html, https://www.hollywoodreporter.com/news/how-people-watched-super-bowl-2017-viewership-stats-973096
Callaway Golf Co. v. Dunlop Slazenger Group Americas, Inc., 325 F. Supp. 2d 457 (D. Del. 2004), see also, Capsule Skateboard:
30
The most durable skateboard deck ever, Tech StartUps, July 2017, accessed May 2018 at
https://techstartups.com/2017/07/31/capsule-skateboard-durable-skateboard-deck-ever/
See Steve Eder, Modern Stats Bring WAR to Broadcast Booth, N.Y. TIMES, April 1, 2013, accessed May 2018 at
31
https://www.nytimes.com/2013/04/02/sports/baseball/baseball-broadcasts-introduce-advanced-statistics-but-with-caution.html.
New Technologies Are Forcing Baseball To Balance Big Data With “Big Brother,” VICE.COM, May 27, 2016, accessed May 2018 at
32
https://sports.vice.com/en_us/article/8qygbp/new-technologies-are-forcing-baseball-to-balance-big-data-with-big-brother
See, Ford R., Trade Secrets and Information Security in the Age of Sports Analytics, Oxford Handbook of American Sports Law,
33
2017, accessed May 2018 at https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2903224
Lewis M., The Art of Winning an Unfair Game, 2003

34
See for example, Readiband at http://www.support2perform.com/faq-items/what-is-a-readiband/

35
See Putting Data Science on a Player’s Sleeve, N.Y. TIMES, April 2016, accessed May 2018 at
36
https://www.nytimes.com/2016/04/03/sports/baseball/putting-data-science-on-a-players-sleeve.html
For example, with the use of StatCast technology, teams can record “the physical position of every player, pitch, and batted
37
ball many times per second.” See Lindbergh B., Ready, Set, Statcast: What the New Data Stream Can Teach Us About MLB,
Grantland.com (2015), accessed May 2018 at http://wheatleyschaller.com/dev/video_embed.php?id=BlissfulGrandAmphibian
D Lippoldt & MF Schultz (2014) “Uncovering Trade Secrets - An Empirical Assessment of Economic Implications of Protection for
38
Undisclosed Data”, OECD Trade Policy Papers, No. 167, OECD Publishing. p. 29.
US Chamber of Commerce (2018) Create, the 2018 U.S. Chamber International IP Index, Washington DC,
39
41
40
These are countries with a score of 0.5 out of 1 or less. See, Create, U.S. Chamber International IP Index, Global Innovation Policy
Center, 2018, accessed May 2018 at http://www.theglobalipcenter.com/wp-content/uploads/2018/02/GIPC_IP_Index_2018.pdf
TRIPS agreement, article 39.1 and 39.2.

41

42
https://www.un.org/sport2005/resources/task_force.pdf
Australian Bureau of Statistics, https://www.clearinghouseforsport.gov.au/knowledge_base/organised_sport/value_of_sport/

43
economic_contribution_of_sport
$266 billion in sports sector in North America.

44
U.S. GDP: $18.57 trillion, Canada GDP: 1.53 trillion, Mexico GDP: $415 billion. See World Bank. As such, the sports sector
in North America is 1.3% of GDP.
$204 billion in sports sector in Europe.

45
Europe GDP: $17.1 trillion. See World Bank. As such, the sports sector in Europe is 1.5% of GDP.

46
http://ec.europa.eu/assets/eac/sport/library/studies/study-contribution-spors-economic-growth-final-rpt.pdf

47
https://www.atkearney.com/communications-media-technology/article?/a/winning-in-the-business-of-sports
Segment definitions: Media rights—fees paid to show sporting events on broadcast and cable television networks, television stations,
48
terrestrial radio, satellite radio, the internet, and mobile devices. Gate revenues—primary market ticket sales for live sporting events.
Nonrecurring seat premiums and license costs are not included. Sponsorship—fees paid to have a brand associated with a team,
league, facility or event, including naming and category rights. Merchandising—the sale of licensed products with team and league
logos, player likenesses, and other intellectual property. Food concession revenues are not included.
US Chamber of Commerce (2018) Create

49
TRIPS: Agreement on Trade-Related Aspects of Intellectual Property Rights, Apr. 15, 1994, Marrakesh Agreement Establishing
50
the World Trade Organization, Annex 1C, THE LEGAL TEXTS: THE RESULTS OF THE URUGUAY ROUND OF MULTILATERAL TRADE
NEGOTIATIONS 320 (1999), 1869 U.N.T.S. 299, 33 I.L.M. 1197 (1994).
Zimmerman, A., and Chaudhry, P. (2009). The Economics of Counterfeit Trade, pp. 22–31; International Chamber of Commerce.
51
(2014). The ICC Intellectual Property Roadmap, 12th Edition, pp. 8–16.
Europol, Counterfeit products, https://www.europol.europa.eu/sites/default/files/publications/counterfeitproducts.pdf;

52
European Commission, Too good to be true: the real price of fake products, 19.4.2013,
http://ec.europa.eu/growth/tools-databases/newsroom/cf/itemdetail.cfm?item_id=6589.
World Health Organization, Medicines: spurious/falsely-labelled/ falsified/counterfeit (SFFC) medicines, Factsheet No. 275, May 2012,
53
http://www.who.int/mediacentre/factsheets/fs275/en/.
Frontier Economics, “Estimating the Global Economic and Social Impacts of Counterfeiting and Piracy: A Report Commissioned by
54
the Business Action to Stop Counterfeiting and Piracy (BASCAP)”, 2011, p. 7,

http://www.iccwbo.org/Data/Documents/Bascap/Global-Impacts-Study---Full-Report/.
National Intellectual Property Rights Coordination Center, (2011). “Intellectual Property Rights Violations… p. 21.
55
Betti, S. and Mangion, R. (2014). “Prosecuting Counterfeiting and Organised Crime: The Need for a Creative Legal Approach,” in
56
Anti-counterfeiting 2014—A Global Guide, World Trademark Review, pp. 16–20.
42
Id.
57
Pollinger, Z. “Counterfeit Goods and Their Potential Financing of International Terrorism,” p. 89. For example, it has been
58
documented how sale of counterfeit Nike products have financed Al-Qaeda activities. Illicit: How Smugglers, Traffickers and
Counterfeiters are Hijacking the Global Economy, Moises Naim, 2006, p. 127.
Internet World Stats, Usage and Population Statistics, Internet Growth Statistics, (Accessed May 2018):
59
https://www.internetworldstats.com/emarketing.htm
Ibid
60
International Post Corporation (2017) State of e-commerce: global outlook 2016-21, (Accessed May 2018):
61
https://www.ipc.be/en/knowledge-centre/e-commerce/articles/global-ecommerce-figures-2017
USTR (2018) 2017 Notorious Markets List, Washington DC 2018, pp. 11-25.
62
US Chamber of Commerce (2016) Measuring the Magnitude of Global Counterfeiting, Washington DC, chapter 2.
63
U.S. International Trade Commission. (2011). China: Effects of Intellectual Property Infringement and Indigenous Innovation
64
Policies on the U.S. Economy, USITC Publication 4226, May 2011, p. 2-5; (2014). Taxation and Customs Union, Report on EU
Customs Enforcement 2014, European Commission; Japan Customs, 2014 Seizure Statistics of IPR Border Enforcement.
For a broader and more detailed discussion on the challenges of measuring counterfeiting activity, see: GIPC (2016).
65
Measuring the Magnitude of Global Counterfeiting: Creation of a Contemporary Global Measure of Physical Counterfeiting,
http://www.theglobalipcenter.com/wp-content/themes/gipc/map-index/assets/pdf/2016/GlobalCounterfeiting_Report.pdf.
The Economic Cost of IPR Infringement in Sports Goods, Office of Harmonization in the Internal Market, 2015.
66
The Economic Cost of IPR Infringement in Sports Goods, Office of Harmonization in the Internal Market, 2015, p. 8.
67
For the definition of sportswear see: Forbes, The Athleisure Trend Is Here To Stay, 6.10.2016,
68
https://www.forbes.com/sites/greatspeculations/2016/10/06/the-athleisure-trend-is-here-to-stay/#676c15c928bd;
Quartz, The rise of athleisure is eating into the profits of regular clothes, 3.5.2016,
https://qz.com/675171/the-rise-of-athleisure-is-eating-into-the-profits-of-regular-clothes/. For the definition and market share
estimation of the ‘wearable tech’ segment see: Forbes, Wearable Tech Market To Double By 2021, 22.6.2017,
https://www.forbes.com/sites/paullamkin/2017/06/22/wearable-tech-market-to-double-by-2021/#5a0d7ef1d8f3;
Cision PR Newswire, Smart Sports and Fitness Wearables Market to Hit $14.9 Billion by 2021, 21.9.2015,
https://www.prnewswire.com/news-releases/smart-sports-and-fitness-wearables-market-to-hit-149-billion-
by-2021-528461241.html.
See: Morgan Stanley, Athletic Lifestyles Keep Apparel Sales Healthy, 30.10.2015,
69
https://www.morganstanley.com/ideas/global-athletic-wear-geared-for-growth; Société Générale, Global sportswear industry:

Steadily growing but fragmented, 9.3.2016, https://www.privatebanking.societegenerale.com/en/media/investment-strategy/
equity-solutions/equity-watcher/the-watcher-details/news/global-sportswear-industry-steadily-growing-but-fragmented/.
The Economic Cost of IPR Infringement in Clothing, Footwear and Accessories sectors, Office of Harmonization in the Internal
70
Market, 2015, p. 8.
Id., pp. 19-24.

71
See: Macquary Research, Faster, richer, healthier: the growth of sporting goods, London, 29 Feb 2016,
72
https://www.macquarie.com/hk/corporate/expertise/healthy-lifestyle-growth-of-revenue; Capitalmind, Favourable trends

continue to drive substantial growth in the sporting goods retailing sector and foster M&A transactions, July 2015,
https://www.capitalmind.com/wp-content/uploads/2015/07/Capitalmind-Sporting-goods-retailers.pdf.
43
73
See: Forbes, The Rise Of China’s Sports Economy, 4.8.2017,
https://www.forbes.com/sites/roberttuchman/2017/08/04/the-rise-of-chinas-sports-economy/#353b148f4a22;
Persistence Market Research, Europe Sporting Goods Market is Expected to be Valued at € 187.48 Bn by 2024,
https://www.prnewswire.com/news-releases/europe-sporting-goods-market-is-expected-to-be-valued-at--18748-bn-by-
2024---persistence-market-research-598658341.html.
74
Morgan Stanley, Athletic Lifestyles Keep Apparel Sales Healthy, 30.10.2015,
https://www.morganstanley.com/ideas/global-athletic-wear-geared-for-growth; Société Générale, Global sportswear
industry: Steadily growing but fragmented, 9.3.2016,
https://www.privatebanking.societegenerale.com/en/media/investment-strategy/equity-solutions/equity-watcher/the-
watcher-details/news/global-sportswear-industry-steadily-growing-but-fragmented/.
75
The Economic Cost of IPR Infringement in Sports Goods, Office of Harmonization in the Internal Market, 2015,
https://euipo.europa.eu/ohimportal/documents/11370/80606/The+cost+of+IPR+infringements+in+sport+goods
76
The Economic Cost of IPR Infringement in Clothing, Footwear and Accessories sectors, Office of Harmonization in the Internal
Market, 2015.
77
The Economic Cost of IPR Infringement in Sports Goods, Office of Harmonization in the Internal Market, 2015.
78
The OHIM studies estimates the losses to government revenues at EUR150 million from counterfeit sporting goods and at EUR8.1
billion from counterfeit clothing, footwear and accessories. Based on the methodology used in this report, which calculates the
consumption of sportswear at 22% of the entire European clothing, footwear and accessories sector, the losses of government
revenues from counterfeit sporting goods and sportswear is EUR1.932 billion.
79
Business Insider, See how Super Bowl ad costs skyrocketed over the years, 5.2.2017,
http://www.businessinsider.com/super-bowl-ad-price-cost-2017-2.
80
PwC Sports Outlook, At The Gate and Beyond: Outlook for the Sports Market in North America Through 2021, p. 3.
81
BBC Sports, Premier League: Third of fans say they watch illegal streams of matches – survey, 4.7.2017,
http://www.bbc.com/sport/football/40483486.
82
Forbes, Tens Of Millions Watched Mayweather Beat McGregor On Pirate Streams, 28.8.2017, https://www.forbes.com/sites/
nelsongranados/2017/08/28/tens-of-millions-watched-mayweather-beat-mcgregor-on-illegal-streams/#7bb90f6979a3.
83

http://www.crainsnewyork.com/article/20150524/TECHNOLOGY/150529934/web-pirates-are-stealing-from-sports-broadcasters
WIPO (2011). Update on Digital Piracy of Sporting Events 2011, Compiled by NetResult Solutions, pp. 4-6,
84
http://www.wipo.int/export/sites/www/ip-sport/en/pdf/piracy_report_2011.pdf.
See for example: FACT, Man ordered to pay £16,000 for illegally streaming Sky Sports, 25.10.2017,
85
https://www.fact-U.K..org.U.K./man-ordered-to-pay-16000-for-illegally-streaming-sky-sports/; Wall Street Journal, Inside Law:

Live Sports Telecast and Piracy, 17.7.2014, https://blogs.wsj.com/indiarealtime/2014/07/17/inside-law-live-sports-telecast-and-piracy/.

86
https://www.forbes.com/sites/roberttuchman/2017/08/04/the-rise-of-chinas-sports-economy/#6acb59ee4a22. https://
www.pwc.com/us/en/industry/entertainment-media/publications/assets/pwc-sports-outlook-2017.pdf
China Daily Europe, China sets up pragmatic plan for football development, 12.4.2016,
87
http://europe.chinadaily.com.cn/sports/2016-04/12/content_24480131.htm.
The Economist, China Gets Its Game On: The emerging power of China’s sports and fitness industry, The Economist Corporate
88
Network Asia, 2016, https://www.corporatenetwork.com/media/1637/china-gets-its-game-on-201701.pdf.
44
89
The Economist, China Gets Its Game On: The emerging power of China’s sports and fitness industry, The Economist Corporate
Network Asia, 2016, https://www.corporatenetwork.com/media/1637/china-gets-its-game-on-201701.pdf.
90
CGTN America, More football fans turning out for the Chinese Super League, 20.7.2017,
https://america.cgtn.com/2017/07/20/infographics-more-football-fans-turning-out-for-the-chinese-super-league.
WIPO, Broadcasting & Media Rights in Sport, http://www.wipo.int/ip-sport/en/broadcasting.html.

91
92
Anderson, M. (2017). Sports Broadcast Copyright in China: the Stranglehold of Originality, China Law Blog, Harris Bricken,
25.6.2017, https://www.chinalawblog.com/2017/06/sports-broadcast-copyright-in-china.html.
93
Copyright Law of the People’s Republic of China of February 26, 2010 (amended up to the Decision of February 26, 2010, by
the Standing Committee of the National People’s Congress on Amending the Copyright Law of the People’s Republic of China),
available in English: http://www.wipo.int/wipolex/en/details.jsp?id=6062.
94
China Daily, Is It Illegal to Pirate Sports Broadcast? Law Will Decide, 26.6.2017,
https://www.pressreader.com/china/china-daily/20170626/281706909688589.
95
Ibid.
96
Beijing Chaoyang District People’s Court, Civil Decision (2014) Chaoyang Civil (IP), First Instance, No. 40334, Sina Internet
Information Services Co., Ltd v. Tianying Jiuzhou Network Technology Co., Ltd. (English translation by: China IPR, Beijing Court
Grants Copyright Protection to Live Sports Broadcast, 2.7.2015,
https://chinaipr.com/2015/07/02/beijing-court-grants-copyright-protection-to-live-sports-broadcast/.
97
ChinaIPR, Protecting Chinese Broadcasts …. In the United States, 7.6.2015, https://chinaipr.com/tag/sports-broadcast/.
98
Anderson, M. (2017). Sports Broadcast Copyright in China: the Stranglehold of Originality, China Law Blog, Harris Bricken,
25.6.2017, https://www.chinalawblog.com/2017/06/sports-broadcast-copyright-in-china.html.
99
PwC, PwC Sports Outlook, At The Gate and Beyond: Outlook for the Sports Market in North America Through 2021, pp.5-7.
Nielsen, China and Football: World Sports’ Newest Superpower,

100
http://nielsensports.com/wp-content/uploads/2014/12/2016-Nielsen-Sports-China-and-Football.pdf.
Yutang Sports, Estimated 500 million online viewership for 2016 CSL, 9.3.2016, http://en.ytsports.cn/news-2266.html.
101
Ofcom (2016). The International Communications Market 2016: 4. TV and Audio-Visual, p.120,
102
https://www.ofcom.org.U.K./__data/assets/pdf_file/0027/95661/ICMR-2016-4.pdf.
See: Sky, Full Results 2016, p.28,

103
http://s3-eu-west-1.amazonaws.com/skygroup-sky-static/documents/investors/results/q4_presentation.pdf;
Business Insider, More than 60% of ESPN’s revenue comes from their dwindling subscriber base, 30.11.2015,
http://www.businessinsider.com/espn-revenue-subscriber-fees-2015-11; Forbes, ESPN’s Profits Can Still Grow, But Cord-
Cutting Is A Real Threat, 24.5.2017, https://www.forbes.com/sites/greatspeculations/2017/05/24/espns-profits-can-still-
grow-but-cord-cutting-is-a-real-threat/#3bf459f57a59; Discovery Communications Inc., 10-K Submission to the United States
Securities and Exchange Commission, ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934, 2017, p. 14, https://annualreport.discovery.com/docs/financials-b35297271e.pdf.
Jiemian, Could sports be as profitable as music? (free translation), 18.4.2016, http://www.jiemian.com/article/613400.html.

104
CNStock News, Chinese Super League 2015 revenues hit record high (free translation), 24.1.2016,
105
http://news.cnstock.com/news,bwkx-201601-3692134.htm.
45
CNStock News, Chinese Super League 2015 revenues hit record high (free translation), 24.1.2016,
106
http://news.cnstock.com/news,bwkx-201601-3692134.htm.
Forbes, ESPN’s Profits Can Still Grow, But Cord-Cutting Is A Real Threat, 24.5.2017,
107
https://www.forbes.com/sites/greatspeculations/2017/05/24/espns-profits-can-still-grow-but-cord-cutting-is-a-real-
threat/#3bf459f57a59.
Discovery Communications Inc., 10-K Submission to the United States Securities and Exchange Commission, ANNUAL REPORT
108
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934, 2017, p. 14,
https://annualreport.discovery.com/docs/financials-b35297271e.pdf.
Sportcal, Eurosport’s full-year revenue takes hit but enjoys healthy profit increase, 19.2.2014,
109
http://www.sportcal.com/News/FeaturedNews/28474.
Reuters, Game on: Suning leads China’s $2 billion soccer rights frenzy, 25.7.2017,
110
https://www.reuters.com/article/us-china-sports-broadcast/game-on-suning-leads-chinas-2-billion-soccer-rights-frenzy-
idUSKBN1AA0OC; WARC.com, Suning is winning the battle for soccer rights in China, 26.7.2017,
https://www.warc.com/NewsAndOpinion/News/Suning_is_winning_the_battle_for_soccer_rights_in_China/39039.
Sohu.com, Will the sports consumption upgrade to a “pay-view match” model succeed? (free translation),
111
http://www.sohu.com/a/139796398_505542.
Hogan Lovells, China: Annual online piracy crackdown campaign 2017: Results announced, 4.1.2018,
112
https://www.limegreenipnews.com/2018/01/china-annual-online-piracy-crackdown-campaign-2017-results-
announced/#page=1.
Sharma, S. (2017). Copyright Protection over Sports Broadcasts: A Global Perspective, presentation from the 60th Abu Sports
113
Group Conference & Associated Meetings, May 2017, Hong Kong,

http://www.abu.org.my/images/articles/Legal/articles/Copyright%20Protection%20Over%20Sports%20Broadcasts.pdf.
Song, S. H. (2017). “How Should China Respond to Online Piracy of Live Sports Telecasts? A Comparative Study of Chinese
114
Copyright Legislation to U.S. and European Legislation”, University of Denver Sports and Entertainment Law Journal.
CGTN America, More football fans turning out for the Chinese Super League, 20.7.2017,
115
https://america.cgtn.com/2017/07/20/infographics-more-football-fans-turning-out-for-the-chinese-super-league.
Nielsen Sports (2016). China and Football: World Sports’ Newest Superpower, p. 5,
116
http://nielsensports.com/wp-content/uploads/2014/12/2016-Nielsen-Sports-China-and-Football.pdf.
ChinaGoAbroad, NBA China And Tencent Launch First-Ever NBA League Pass Offering in China, February 2017,
117
http://www.chinagoabroad.com/en/article/nba-china-and-tencent-launch-first-ever-nba-league-pass-offering-in-china;
Quartz, In China many Premier League matches will be offered only via pay-per-view—to the dismay of fans, 11.8.2015,
https://qz.com/475658/in-china-many-premier-league-matches-will-be-offered-only-via-pay-per-view-to-the-dismay-of-fans/.
WIRED, The Little Black Box That Took Over Piracy, 27.10.2017, https://www.wired.com/story/kodi-box-piracy/.
118
The image and description are taken from GumTree,

119
https://www.gumtree.com/p/other-tv-dvd-cameras/mxq-quad-core-android-4.4-tv-box-jailbroken-fully-loaded-kodi-16.0-
free-sports-movies/1164572206.
Kudelski Group (2016). The New Face of Pay-TV Piracy and How to Fight It, p. 7,
120
https://www.kudelskisecurity.com/sites/default/files/files/Kudelski%20Security_The%20New%20Face%20of%20Pay-
TV%20Piracy%20and%20How%20to%20Fight%20it_White%20Paper.pdf.
46
121
BT (2017). IPO Call for Views: Illicit IPTV Streaming Devices, BT Submission, 6 April 2017, p. 9,
122
https://www.btplc.com/Thegroup/U.K.PublicAffairs/U.K./ResponsestoPolicyConsultations/170406BT_Response_to_IPO_
Call_for_Views_on_illicit_IPTV_devicesFINAL.pdf.
The Straits Times, Pirates ‘plundering streaming TV market using unauthorised set-top boxes’, 10.1.2015,
123
http://www.straitstimes.com/world/africa/pirates-plundering-streaming-tv-market-using-unauthorised-set-top-boxes.
Sandvine (2017). 2017 Global Internet Phenomena Spotlight: Subscription Television Piracy,
124
https://www.sandvine.com/hubfs/downloads/archive/2017-global-internet-phenomena-spotlight-subscription-television-piracy.pdf.
FACT, (2017). Cracking Down on Digital Piracy Report, September 2017, p. 4.

125
126
Nielsen, Catch it Live: Sports Viewing Scores a Programming Goal, 22.2.2016,

127
http://www.nielsen.com/us/en/insights/news/2016/catch-it-live-sports-viewing-scores-a-programming-goal.html.
Irdeto, Irdeto Perspective: Giving live sports piracy the red card, 24.10.2016,
128
https://irdeto.com/documents/Collateral/ip_giving_live_sports_piracy_red_card_en.pdf.
See for example: Gizmodo, Sky vs Kodi: Sports Channel Shake-Up Is A Declaration Of War On Illegal Streamers, 29.6.2017,
129
http://www.gizmodo.co.U.K./2017/06/sky-vs-kodi-sports-channel-shake-up-is-a-declaration-of-war-on-illegal-streamers/;
The Guardian, Is the unthinkable happening – are people finally switching the football off?, 24.10.2016,
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Views: Illicit IPTV Streaming Devices, BT Submission, 6 April 2017, p. 8,
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YouGov U.K., Almost five million Britons use pirated TV streaming services,
130
https://yougov.co.U.K./news/2017/04/20/almost-five-million-britons-use-illegal-tv-streami/;
The Guardian, More than half of young people watch illegal streams of live sports, study finds, 25.4.2017,
131
https://www.theguardian.com/sport/2017/apr/25/illegal-streams-live-sports-sports-industry-group.
Torrentfreak, Premier League Obtains Intriguing Injunction to Tackle Pirate Streams, 10.3.2017,
132
https://torrentfreak.com/premier-league-obtains-intriguing-injunction-to-tackle-pirate-streams-170309/.
Torrentfreak, Premier League Wins New Stream Blocking Injunction to Fight Piracy, 27.7.2017,
133
https://torrentfreak.com/premier-league-wins-new-stream-blocking-injunction-to-fight-piracy-170727/.
The Guardian, Premier League launches major fightback against illegal streaming, 29.3.2017,
134
https://www.theguardian.com/football/2017/mar/29/premier-league-illegal-streaming-tv-audiences.
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135
https://curia.europa.eu/jcms/upload/docs/application/pdf/2017-04/cp170040en.pdf.
Bereskin & Parr, Set-Top TV Boxes in the Eye of the Storm Over Copyright Claims, Lovrics, C. and Lootsma C., 15.7.2016,
136
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47
Today Online, Copyright owners take legal set-top box sellers to court in unprecedented case, 12.1.2018,
137
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48

Leveraging Intellectual Property in The Global Sports Economy

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LEVERAGING INTELLECTUAL

PROPERTY IN THE GLOBAL

1. IP Rights and Sports: A Symbiotic Relationship................................................................10

1.1 Mapping IP Rights in the Sports Sector......................................................................................................... 10

1.1.3 Design Rights...............................................................................................................................................................15

1.1.5 Trade Secrets...............................................................................................................................................................18

1.2 IP Assets in the Sports Marketplace..............................................................................................................20

1.3 The Untapped Potential of Emerging Economies........................................................................................23

2. The Cost to Society of IP Infringement of Sports-Related Goods and Content............ 24

2.1.1 The Potential Dangers of Counterfeiting..............................................................................................................24

2.1.2 Counterfeiting in the Sporting Goods and Sportswear Sectors....................................................................26

2.1.3 Estimating the Global Economic Impact of Counterfeiting on the

2.2.1 Piracy of Live Broadcasting of Sports Events: A Global Concern.................................................................29

2.2.2 The Pivotal Role of Robust Copyright Protection in Promoting Sports......................................................29

2.3.1 Set-Top Boxes: Introducing “Lean-Back” Piracy................................................................................................ 33

2.3.2 The Impact of Set-Top Box Piracy on Live Sports Broadcasting.................................................................. 34

2.3.3 Measuring the Magnitude of Sports Broadcasting Piracy.............................................................................35

2.3.4 Countering Set-Top Box Piracy of Sports Broadcasting: A Developing Field.......................................... 37

3. Conclusions and Final Thoughts....................................................................................... 38

Table 2: Number of Utility Patents Granted to Date Across 17 Selected

Table 3: Revenues from TV and Digital Subscriptions of the Chinese

Figure 3: Top 10 Sports Teams by Brand Value Exceeding the Average

Figure 5: North America Sporting Events Market by Segment............................................................................................21

Figure 6: The Impact of Counterfeiting on the Global Market for Sporting

Figure 7: Example of a Currently Available “Fully Loaded” Set-Top Box......................................................................... 33

Figure 8: The Economic Cycle of Set-Top Box Piracy........................................................................................................... 34

Figure 9: Share of Consumers Most Interested in Viewig Pirated Live

Key finding 4: Online piracy of sports broadcasting is mushrooming, but

MAPPING THE SPORTS ECONOMY

TABLE 1: MAKE-UP OF THE SPORTS SECTOR (AS DEFINED IN THIS REPORT)

Make-up of the Sports Sector

SPORTING APPAREL &

a) physical counterfeiting of sporting goods and sportswear;

c) a new generation of piracy enabled by the proliferation of set-top boxes.

1. IP RIGHTS AND SPORTS: A SYMBIOTIC RELATIONSHIP

Source: Google Patents; analysis: Pugatch Consilium

Case Study 1: The Waffle Trainer

APPS AND WEARABLES

Figure 1: U.S. Patent 14,292,669

Source: Google Patents

Source: statista.com; analysis: Pugatch Consilium

ENERGY DRINKS AND SUPPLEMENTS

THE WAY SPORTS ARE PLAYED

BRANDING OF TEAMS AND LEAGUES

Dallas Cowboys $896 million

New York Yankees $688 million

Los Angeles Lakers $595 million

Manchester United $564 million

Barcelona FC $537 million

New England Patriots $518 million

Real Madrid FC $510 million

New York Knicks $505 million

Boston Red Sox $458 million

Chicago Cubs $457 million

Source: Forbes; analysis: Pugatch Consilium

1.1.3 DESIGN RIGHTS

Case Study 2: Cycling Outside the Box24

Source: International Olympic Committee; analysis: Pugatch Consilium

1.1.5 TRADE SECRETS