KEY POINTS:
Many people quite rightly applauded New Zealand's success in winning the rights to host the Rugby World Cup - not only because of the excitement of hosting such a major sporting spectacle here in New Zealand - but also because of the significant economic benefits that will be generated.
All this could be lost or severely compromised if New Zealand cannot protect the official commercial sponsors from what is known as ambush marketing - when companies or advertisers make representations through advertising or other publicity that draw a connection in the public's mind with themselves and major events - without the authorisation of the event organisers.
Contrary to the recent assertions of intellectual property law specialist John Glengarry on this page, the Major Events Management Bill contains safeguards that will ensure that ordinary New Zealanders and businesses will not breach the bill by carrying on their ordinary activities, so long as they are doing so without creating an unauthorised association with a brand, good or services.
There are also a number of exceptions for "honest business practices", such as businesses continuing to display existing signage. Ordinary New Zealanders will not commit an offence under the bill unless they knowingly breach the restriction on unauthorised association, or the prohibition on advertising and trading within a clean [no unauthorised advertising] zone, and aren't covered by one of the many exceptions and defences.
It is a commercial reality that sponsors of major events are making huge financial commitments and expect something in return. Otherwise, why would they bother with the sponsorship? Clearly those sponsors do not want others to free-ride on their investments and trade off the goodwill and publicity surrounding an event, thereby undermining the value of their official sponsorship and the viability of obtaining sponsorship for future events.
Mr Glengarry is also incorrect in his claim that the bill will be tougher than most other countries in this area, and he likewise wrongly claims Canada and Britain are relaxing their rules.
Legislation was passed in Britain last year to protect the 2011 London Olympic Games from ambush marketing, and Canada is also moving to introduce an act to protect against ambush marketing in advance of the 2010 Winter Olympics in Vancouver.
It is now common practice for organisers of major events to require appropriate ambush marketing protections to be implemented as a condition for hosting the event.
Legislation containing ambush marketing protections has been introduced in overseas jurisdictions, including:
* Australia for 2000 Sydney Olympic Games, 2006 Melbourne Commonwealth Games and the Australian Formula 1 Grand Prix.
* Britain for the 2012 London Olympic Games.
* China for the 2008 Beijing Olympic Games.
* South Africa for the 2010 FIFA World Cup.
* Nine West Indies nations for the Cricket World Cup.
Under our proposals, organisers must take all reasonable steps to put in place the protections that are available under the existing legislation, for example under the Trade Marks Act, and the Fair Trading Act - otherwise they won't get protection under the proposed legislation.
Mr Glengarry also claims that private property rights might be lost. Wrong again. Clean zones cannot include private land unless it is an area where the public normally has access.
While there will be restrictions on unauthorised advertising on key transport routes and within sight of clean zones, these will only be in place for tightly defined periods around major events.
Companies that host clients will not be affected provided they do not make representations that suggest they are associated with the event when they are not.
As for the proposed ban on scalping tickets for prices more than their face value - I think most people desperate for a ticket to a Rugby World Cup game would be frustrated, along with the event organisers, to see tickets being on-sold at levels designed only to make huge profits for the seller.
Ordinary people will not be banned from wearing brand clothing that has logos from non-sponsors - unless they wear it in co-ordination with others in an orchestrated attempt to intrude on the publicity associated with a major event.
* Trevor Mallard is the Minister for the Rugby World Cup, Economic Development, Industry and Regional Development, State Owned Enterprises and Sport and Recreation and Associate Minister of Finance.
