The sponsorship agreement must clearly know who is entitled to the different intellectual property rights and where everything has been prepared together, for example. B a combined logo to which it belongs. The sponsored party should keep in mind that if the sponsor obtains property rights, it could, for example, continue to use the logo even after the sponsorship contract has ended. that intellectual property rights held and licensed under the agreement do not infringe the rights of third parties; The list of commitments on the sponsored part can be long depending on what is sponsored, and it should be noted that a substantial violation of one of these commitments may allow the sponsor to terminate the sponsorship contract and move away from the agreement. In the case of a team, ensure that a certain standard of players participates in the event (i.e., installing a team of relatively unknown people will reduce the value of the sponsorship); Detailed tax considerations go beyond the scope of this memo, but taxation can be problematic depending on the type of sponsorship and the legal systems it covers. For example, care should be taken to minimize the risk of double taxation in two or more countries. Tax advice should be sought. Sponsor title rights – the type of association with a sponsorship theme that a sponsor would generally like to have (examples above). Secondary sponsorship – z.B. Sponsoring a specific part of an event, for example.
B of one of the games or performances of the event or series. A sponsorship contract is important because it defines rights and obligations between the two parties and confirms all commitments made to each other. The terms of sponsorship must be clearly defined. What kind of sponsorship is given? Does the sponsor have exclusive sponsorship rights or are there secondary sponsors? What is the event/program/film/person to which sponsorship rights are conferred? Which countries does it cover? Advertising – The sponsor wants the additional right to advertise at the venue of the event. The sponsorship contract ensures the nature and scope of the advertisement. Z.B. If the advertisement is defined around the scope of the sports playground, the placement and number of daycares are defined. It is customary for a sponsorship to cover a fixed period, for example. B a season, an annual event or a contest. Temporary sponsorships end on an agreed date, subject to sponsorship renewal fees. Duration will depend on a number of business factors.
The provision dealing with this term is generally quite simple. As the World Cup highlights the immense potential value of sponsorship, Nick Johnson gives a legal overview of the issues to be considered when considering a sponsorship agreement. It is the most important provision that highlights the procedures and the reasons for the postponement and cancellation. The provision defines the procedure and reasons for termination and what will happen after termination. Sometimes the termination clause gives sponsors the right to terminate the contract when the organizers resign or damage to the reputation. The provision also specifies what to do in the event of an infringement. This clause should be deliberately negotiated to avoid future conflicts. In the event of a breach of terms or obligations in the contract, there may also be general compensation from one party to the other. A sponsor may be entitled to a refund of a portion of the sponsorship fee if the sponsor`s requirements are not met. In order to ensure that the needs of both parties are met, a sponsorship agreement is established in the form of a contract specifying the details that each party accepts.
Organizers are also expected to fulfill a number of legal obligations set by sponsors in exchange for sponsorship fees.