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With the start of UEFA Euro 2024, as with other large-scale events, there is a notable increase in economic activity related to the event itself and other associated activities, such as product trading. Likewise, greater attention is needed regarding issues involving the protection and violation of intellectual property rights.
Many intangible assets and related rights are involved in this type of event, including broadcasting rights for the games, the use of athletes' images, and the use of registered trademarks. These trademarks may be owned by clubs or sponsors and appear on uniforms, in stadiums and their surroundings, as well as on other associated products.
In Brazil, the impact of sports on the market is enormous, with the sector already established as one of significant economic relevance. The market's focus spans from organizing and promoting activities and events to producing and selling gear, clothing, and accessories. Given the global success of Brazilian soccer, a significant industry has developed around the manufacture and export of soccer products.
In this context, the soccer sponsorship market is worth millions, with companies competing to sponsor clubs and display their brands on uniforms, ensuring visibility to millions of spectators. For example, national team tournaments, due to their international reach and visibility, represent great opportunities for companies to showcase their brands. In these cases, unlike club tournaments where sponsors have their brands printed on players' uniforms, companies invest in exhibition opportunities in and around stadiums, as well as in products related to the event and the participating national teams.
In club tournaments, even though visibility is more national and regional, there is no less excitement about the potential for exposure. With the recent regulation of the sports betting market in Brazil, the presence of betting house sponsorships has become noticeable in most Brazilian clubs, evidenced by the inclusion of sponsors' brands on uniforms. Leading these sponsorship contracts are Corinthians and Vai de Bet, with a three-year contract worth 320 million Brazilian reais.
Considering the value added to products that are sold at high prices, making them inaccessible to a large portion of the population, it is estimated that 37% of soccer club shirts sold in Brazil are counterfeit1. This is because counterfeit shirts are sold at considerably lower prices. For instance, during the last World Cup, counterfeit shirts were identified in Brazil as being sold for eight times less than the original product,2 making them more accessible and appealing to people with less disposable income.
In the country, counterfeiting a team shirt involves violating several IP laws, such as trademark registration, the unauthorized reproduction of which is considered a crime and a civil offense. The same applies to those who “import, export, sell, offer or display for sale, conceal, or have in stock products with illegally reproduced brands.”3.
However, additional parties involved in the manufacture and sale of counterfeit products are subject to legal prohibitions and sanctions. The consumption of such products can be classified as a crime of receiving stolen goods, as provided for in Article 180 of the Brazilian Penal Code4. This provision makes it a crime to acquire something one knows to be the proceeds of a crime.
In Brazil, the application of this law and its sanctions against consumers is rare. However, large-scale operations to combat piracy are common. According to data from the National Forum Against Piracy and Illegality, Brazil lost 441 billion Brazilian reais to the illegal market in 2023, with losses estimated to have quadrupled over the last decade. Among the most affected sectors, beverages led the survey, followed by clothing. Between January 2023 and January 2024, 1,522 operations were conducted to combat counterfeiting, piracy, and tax evasion5.
Nevertheless, there is still room for improvement, especially when compared to other countries with more stringent legislation and enforcement.
For instance, Italy imposes fines up to 7,000 euros on those who purchase counterfeit products6. Similarly, Germany has laws that not only prohibit the distribution and sale of counterfeit products but also their possession. Notably, a few years ago, news emerged that a Brazilian woman had been fined 235 euros for purchasing a counterfeit handbag7. The UEFA Euro host country has prepared for the event, and according to recent information,8 local police will conduct random checks on fans. If found in possession of counterfeit products, such as t-shirts, fans may face fines equivalent to over 25,000 Brazilian reais9.
Despite Brazil having room to improve compared to other countries, the efforts made on various fronts in the fight against counterfeiting cannot be ignored. It is crucial for holders whose rights have been infringed to remain diligent and actively collaborate with authorities to protect their assets.
