Merchandising Rights in Sports: Licensing, Trademarks and Unauthorized Products

Introduction

Merchandising rights are one of the most valuable commercial assets in modern sports. A successful club, federation, league, event or athlete does not generate revenue only from ticket sales, broadcasting or sponsorship. It also creates a brand that fans want to wear, collect, display and purchase. Jerseys, scarves, caps, training wear, posters, mugs, toys, digital collectibles, video game content, signed memorabilia, footwear, accessories and lifestyle products are all part of the sports merchandising economy.

Sports merchandising is legally complex because it sits at the intersection of trademark law, copyright, design rights, licensing, sponsorship, consumer protection, e-commerce, customs enforcement, anti-counterfeiting law, athlete image rights and unfair competition. A product may look like a simple football shirt or fan scarf, but legally it may involve a club crest, competition logo, player name, sponsor mark, manufacturer trademark, copyright-protected artwork and official licensing rules.

The legal foundation of sports merchandising is intellectual property. WIPO explains that intellectual property rights are the basis of licensing and merchandising agreements that generate revenue supporting the development of the sports industry. WIPO also emphasizes that brands are central to sports business transactions, especially sponsorship deals and product merchandising, and that trademarks lie at the heart of branding.

This article explains merchandising rights in sports, focusing on licensing, trademarks, unauthorized products, counterfeit goods, e-commerce enforcement and practical legal strategies for clubs, federations, athletes, sponsors and manufacturers.

What Are Merchandising Rights in Sports?

Merchandising rights are the legal and commercial rights to produce, sell, distribute and promote products bearing the identity of a sports club, athlete, federation, league, tournament or event. These rights may include the use of names, logos, crests, emblems, mascots, slogans, trophies, player likenesses, team colors, jersey designs, signatures and other brand elements.

A merchandising program may involve:

• official jerseys and training kits;
• scarves, hats and fan apparel;
• collectible cards and stickers;
• toys and figurines;
• signed memorabilia;
• posters and wall art;
• video game content;
• digital collectibles;
• footwear and lifestyle clothing;
• drinkware and household items;
• event-specific products;
• limited-edition collaborations;
• athlete-branded products.

The legal right to create these products does not automatically belong to the manufacturer. It usually belongs to the intellectual property owner, such as the club, federation, event organizer, athlete or rights-holding company. A manufacturer, retailer or sponsor must obtain a licence before using protected marks or identity elements commercially.

Why Merchandising Rights Matter

Merchandising rights matter because sports brands have emotional value. Fans do not buy a jersey merely because it is fabric. They buy identity, loyalty, memory and belonging. A club crest on a shirt can represent family tradition, city pride and decades of sporting history. A tournament logo can represent a once-in-a-generation event. An athlete’s signature can transform an ordinary product into a collectible.

This emotional value creates commercial value. Strong sports brands can command premium prices, global distribution and long-term customer loyalty. WIPO notes that strong sports brands can create business value, drive revenue and support growth, especially through sponsorship and product merchandising.

Merchandising also protects the integrity of official partnerships. Official licensees pay fees, follow quality-control rules and support the sports ecosystem. Unauthorized sellers do not. Counterfeit or unlicensed products may damage fan trust, reduce official revenue, undermine sponsor exclusivity and expose consumers to low-quality goods.

Trademark Licensing as the Legal Basis of Sports Merchandising

Trademark licensing is the core legal mechanism behind sports merchandising. A trademark licence allows a licensee to use a licensor’s trademark on specified goods or services under agreed conditions. The licensor keeps ownership of the trademark; the licensee receives permission to use it within the defined scope.

WIPO explains that a trademark licence underpins sports merchandising programs and grants rights without transferring intellectual property ownership. It also states that licensors must ensure licensees maintain product quality because the licensed goods carry the licensor’s reputation.

A sports merchandising licence should define:

• licensed trademarks;
• licensed product categories;
• territory;
• duration;
• sales channels;
• exclusivity or non-exclusivity;
• quality-control standards;
• design approval process;
• royalty rate;
• minimum guarantee;
• reporting obligations;
• anti-counterfeiting cooperation;
• online sales rules;
• termination rights;
• post-termination sell-off period.

Without a written licence, the manufacturer or seller may face trademark infringement, unfair competition claims, customs seizure and product removal from online platforms.

Trademarks in Sports Merchandising

Trademarks are essential because they identify commercial origin and protect brand value. In sports, trademarks may include:

• club names;
• club crests;
• federation logos;
• league names;
• competition names;
• event logos;
• mascots;
• slogans;
• player nicknames;
• athlete personal brands;
• trophy names or images;
• official hashtags;
• special edition marks.

Sports organizations should register trademarks in key markets before launching merchandising programs. International sport is cross-border by nature. A club may have fans in many countries, and counterfeiters may produce goods in one jurisdiction and sell them globally online. WIPO notes that trademarks help clubs, leagues, event organizers and athletes secure sponsorships, merchandise deals, broadcasting rights and global partnerships, and that the international trademark system helps sports brands protect identity across borders.

Trademark registration is not only defensive. It also increases commercial value. A potential licensee is more likely to pay royalties if the licensor can prove ownership and enforce the mark.

Official Merchandise and Licensed Products

Official merchandise is merchandise produced or sold under authorization from the relevant rights holder. The authorization may come from a club, federation, event owner, league, athlete or official licensing agent.

Official merchandise usually carries advantages:

• legal authorization;
• quality control;
• consumer trust;
• official branding;
• connection to the club or event;
• revenue return to the rights holder;
• compliance with sponsor and federation rules;
• authentic labels or tags;
• authorized distribution.

FIFA states that it operates a global licensing programme that allows fans to engage with its tournaments and purchase official memorabilia. It also states that businesses producing items bearing FIFA intellectual property without the required licence are treated as producing unauthorized products, and FIFA treats all unauthorized products as counterfeits.

This approach reflects the commercial reality of major sports events. Official merchandise is not only a product category. It is part of the event’s brand-protection and revenue system.

Unauthorized Products vs. Counterfeit Products

Unauthorized products and counterfeit products are related but not always identical.

An unauthorized product is a product that uses protected sports identity without permission. For example, a T-shirt using a club crest without a licence is unauthorized.

A counterfeit product usually imitates official merchandise and is presented as genuine. For example, a fake replica jersey sold as an official club shirt is counterfeit.

A product may be unauthorized even if it is not an exact counterfeit. For example, a scarf using a protected competition slogan and event imagery may be unauthorized even if it does not copy an official scarf design. A non-sponsor product using a tournament logo or protected word mark may also be unauthorized.

The legal risk depends on the facts. Potential claims may include:

• trademark infringement;
• copyright infringement;
• design right infringement;
• passing off;
• unfair competition;
• false advertising;
• consumer deception;
• customs violations;
• breach of platform rules;
• breach of ticketing or event rules.

Rights holders should not limit enforcement only to exact copies. The broader risk is unauthorized commercial association with the sports brand.

Copyright and Design Rights in Sports Merchandise

Sports merchandise may also involve copyright and design rights. These rights can protect creative elements such as graphic artwork, mascot illustrations, poster designs, photographs, video stills, jersey patterns, typographic designs, packaging and product shapes.

A sports club crest may be protected as both a trademark and a copyright work. A mascot may be protected by copyright, trademark and design rights. A trophy image may be protected through trademark, copyright, design rights or event-specific law. A jersey design may involve trademarks, copyright, registered designs and contractual rights.

This layered protection is useful. If a seller avoids using the exact trademark but copies a distinctive graphic or product design, copyright or design rights may provide an alternative enforcement route.

A merchandising licence should therefore specify not only trademarks but also copyright, designs, artwork, product specifications, marketing materials and packaging.

Athlete Merchandising Rights

Athlete merchandising raises separate legal issues. A club may own its crest and team marks, but it does not automatically own every commercial use of an athlete’s name, face, signature, voice, nickname or personal logo.

Athlete merchandise may include:

• player-name jerseys;
• signature boots;
• athlete-branded clothing;
• collectible cards;
• autographed memorabilia;
• video game avatars;
• posters;
• figurines;
• NFTs or digital collectibles;
• athlete lifestyle brands.

The rights may be split among several parties. The club may control team kit and official jerseys. The league or federation may control competition marks. The athlete may control personal image rights. The kit manufacturer may control apparel designs. A sponsor may have endorsement rights.

A contract should clarify:

• whether the club may sell player-name merchandise;
• whether the athlete receives royalties;
• whether the athlete can sell personal merchandise independently;
• whether club marks may be used on athlete products;
• whether sponsor conflicts exist;
• whether the athlete’s image may be used after transfer or retirement;
• whether autographed products are official or personal.

Disputes often arise when an athlete leaves a club, retires, changes sponsor or launches a personal brand that overlaps with club merchandise.

Club Merchandise and Fan Products

Club merchandise is the most common form of sports merchandising. Clubs usually control their names, crests, colors, slogans and official kits. They may license these assets to kit manufacturers, retail partners, e-commerce platforms, collectible companies and local distributors.

A club merchandising strategy should include:

• trademark registration;
• official store agreements;
• kit supplier agreement;
• retail distribution contracts;
• e-commerce policy;
• anti-counterfeiting monitoring;
• product approval workflow;
• quality-control standards;
• licensing revenue audits;
• fan-created product policy;
• enforcement against unauthorized sellers.

Clubs should distinguish between genuine fan expression and commercial infringement. A supporter making a personal banner is different from a business selling thousands of unlicensed shirts using the club crest. Enforcement should be commercially intelligent and proportionate.

Event Merchandise and Tournament Marks

Major tournaments create unique merchandising opportunities. Event merchandise may include host-city products, limited-edition apparel, mascots, pins, collectible coins, posters, souvenirs and official memorabilia.

Event owners often control special marks and official intellectual property. FIFA’s 2026 World Cup intellectual property guidelines state that FIFA holds all rights in relation to the FIFA World Cup 26, including intellectual property, media, marketing, licensing, ticketing and other commercial rights.

This means businesses cannot freely use World Cup-related official marks, logos, mascots or tournament identifiers for merchandise. Even modified or indirect use may create risk if it suggests official association or uses protected elements.

Event merchandise licences often have strict rules because the event is time-limited. The licence may specify production deadlines, sell-off periods, territory, retail channels, sponsor conflicts, packaging requirements and anti-counterfeiting tags.

Sponsorship Conflicts in Sports Merchandising

Merchandising often overlaps with sponsorship. A club may have an official kit manufacturer, beverage partner, betting partner, airline partner or financial services sponsor. Merchandise must not conflict with those sponsorship rights.

For example:

• A club’s official apparel licensee may have exclusivity for clothing.
• A tournament sponsor may have exclusive rights to produce branded fan items.
• An athlete’s personal sponsor may conflict with club merchandise.
• A product collaboration may conflict with a category-exclusive sponsor.
• A retailer may want to sell products bearing both club and sponsor marks.

A merchandising licence should include sponsor-conflict rules. Before approving a product, the rights holder should check existing sponsorship agreements, category exclusivity and event restrictions. A profitable merchandise collaboration may become a legal dispute if it violates sponsor rights.

Quality Control and Brand Protection

Quality control is essential in trademark licensing. If a club licenses its crest for low-quality products, consumer trust may be damaged. If defective products reach fans, the club may face reputational harm even if the manufacturer is technically responsible.

A licence should require:

• pre-production sample approval;
• material standards;
• safety compliance;
• ethical sourcing;
• packaging approval;
• product testing;
• labeling requirements;
• recall procedures;
• audit rights;
• factory disclosure;
• anti-counterfeiting labels;
• compliance with consumer protection laws.

Quality control is not optional. WIPO stresses that licensors must ensure licensees maintain quality because the products bearing the trademark affect the licensor’s reputation.

For youth products, toys, children’s apparel and food-related merchandise, safety compliance is especially important.

Royalties, Minimum Guarantees and Accounting

Merchandising licences often involve royalties. The licensee pays the rights holder a percentage of net sales or gross sales. Some agreements include minimum guarantees, advance payments or performance targets.

Key financial clauses include:

• royalty rate;
• calculation base;
• deductions allowed;
• currency;
• tax treatment;
• payment dates;
• reporting format;
• audit rights;
• minimum guarantee;
• late payment interest;
• sell-off reporting;
• stock reporting;
• online sales reporting.

Royalty disputes are common. A licensee may underreport sales, overstate deductions, sell through affiliates at artificially low prices, or classify products outside the royalty category. A strong audit clause allows the licensor to inspect records and recover underpayments.

Territory and Distribution Channels

Sports brands are global, but merchandising rights are often territorial. A licensee may receive rights for one country, region or platform. Unauthorized sales outside territory may conflict with other licensees.

A licence should define:

• licensed territory;
• physical retail rights;
• e-commerce rights;
• marketplace rights;
• wholesale rights;
• stadium retail rights;
• fan-zone sales;
• airport and travel retail;
• cross-border shipping;
• social commerce;
• sublicensing.

E-commerce complicates territorial licensing. A website accessible worldwide may sell into territories reserved for other licensees. The licence should state whether geo-blocking, delivery restrictions or platform controls are required.

E-Commerce and Online Marketplace Enforcement

Unauthorized sports merchandise is now heavily sold online. Marketplaces, social media shops, private websites and short-video platforms allow counterfeiters to reach fans quickly.

EUIPO has described the online environment as a facilitator of infringement because it can give end users access to more pervasive infringement models and broader product categories than traditional physical exchange. The European Commission has also noted that online marketplaces are increasingly used as distribution channels for counterfeit and pirated goods.

A modern enforcement strategy should include:

• marketplace monitoring;
• notice-and-takedown procedures;
• domain name enforcement;
• social media reporting;
• customs recordals;
• payment processor complaints;
• search engine complaints;
• test purchases;
• seller identification;
• repeat-infringer escalation;
• cooperation with law enforcement.

Rights holders should act quickly during major events. Counterfeit merchandise often peaks around finals, player transfers, championship wins and tournament launches.

Customs Enforcement and Border Measures

Customs enforcement is important because counterfeit merchandise often crosses borders before reaching consumers. Rights holders can record trademarks with customs authorities in many jurisdictions, allowing customs to detain suspected counterfeit goods.

Customs action is especially useful for:

• fake jerseys;
• counterfeit scarves;
• unauthorized caps;
• event souvenirs;
• fake collectible items;
• mass-produced apparel;
• imported counterfeit footwear.

Large-scale sports events often trigger increased counterfeiting. EUIPO’s 2024 annual activity report referred to its “Play Fair” campaign, which raised awareness about illegal streaming and counterfeit sports equipment and reached 50 million people. Historical anti-counterfeiting operations have also targeted major football tournaments; one European IPR Helpdesk bulletin reported that the “GOL14” operation around the 2014 FIFA World Cup intercepted 743,076 counterfeit articles, with 510,487 directly related to the sporting goods industry.

Customs enforcement requires preparation. Rights holders should provide product identification guides, trademark certificates, authorized manufacturer lists and contact points for rapid confirmation.

Unauthorized Products and Consumer Protection

Unauthorized sports merchandise harms not only rights holders but also consumers. Fans may believe they are buying official products when they are not. Counterfeit goods may be poor quality, unsafe, mislabeled or non-refundable. Consumers may also pay premium prices for products that do not support the club, athlete or event.

Consumer protection issues include:

• misleading official status;
• fake authenticity labels;
• poor product quality;
• unsafe materials;
• lack of refund rights;
• false limited-edition claims;
• fake signatures;
• counterfeit collectible certificates;
• unauthorized charity claims;
• non-delivery by fraudulent sellers.

Sports organizations should educate fans about official stores, authenticity tags and authorized retailers. Consumer-facing brand protection is often more effective than litigation alone.

Merchandise, Advertising and Ambush Marketing

Unauthorized merchandise can also function as ambush marketing. A business may sell products that suggest association with a major event without being an official licensee. For example, a shirt using a host city, event year, football imagery and similar colors may attempt to benefit from the event without using the official logo.

This creates overlap between merchandising rights and ambush marketing. The rights holder may pursue trademark, unfair competition, passing off, copyright, design or event-specific claims depending on the product.

Businesses should avoid using protected event marks, misleading phrases or official-looking designs unless licensed. A generic football-themed product may be lawful; a product designed to look like official tournament merchandise may not be.

Digital Merchandise and NFTs

Digital merchandise creates new legal challenges. Clubs, athletes and leagues may sell digital collectibles, NFT cards, avatar wearables, video game skins, virtual jerseys and metaverse fan items. These products may involve trademarks, copyright, image rights, platform licences, consumer law and financial regulation.

A digital merchandise licence should address:

• blockchain or platform used;
• intellectual property scope;
• secondary resale royalties;
• consumer disclosures;
• athlete image rights;
• sponsor conflicts;
• duration of digital access;
• cybersecurity;
• refunds;
• marketplace enforcement;
• territorial restrictions;
• use after athlete transfer.

The legal mistake is assuming digital products are outside ordinary merchandising law. If a digital jersey uses a club crest, trademark permission is still required. If a digital collectible features an athlete, image rights may be required. If a product is marketed as an investment, additional regulatory risk may arise.

Merchandising Agreements: Essential Clauses

A well-drafted sports merchandising agreement should include:

1. Definitions of Licensed Rights
   The agreement should identify exact trademarks, logos, artwork, player names, images and other assets.
2. Product Categories
   The licence should state whether it covers apparel, accessories, toys, collectibles, digital items or other goods.
3. Territory
   The licence should define where products may be sold.
4. Sales Channels
   The agreement should regulate physical retail, stadium sales, e-commerce, marketplaces and wholesale.
5. Quality Control
   The licensor should approve samples, packaging and product standards.
6. Royalties and Reporting
   The agreement should define royalty rates, payment dates, reporting and audit rights.
7. Approvals
   All designs and marketing materials should require approval before production.
8. Exclusivity
   The agreement should state whether the licence is exclusive, non-exclusive or category-exclusive.
9. Sponsor Conflicts
   The licensee must comply with existing sponsorship rights.
10. Anti-Counterfeiting Cooperation
    The licensee should assist with enforcement and report suspected infringements.
11. Termination
    The licensor should have termination rights for quality failures, non-payment, unauthorized sublicensing or brand damage.
12. Post-Termination Sell-Off
    Remaining stock should be regulated.
13. Indemnity and Liability
    The licensee should indemnify the licensor for product defects and unauthorized conduct.
14. Governing Law and Dispute Resolution
    The forum and law should be clear.

Common Merchandising Disputes

Common disputes include:

• unauthorized use of club crest;
• counterfeit jerseys;
• fake signed memorabilia;
• licensee exceeding product category;
• sales outside territory;
• online marketplace infringement;
• underpayment of royalties;
• poor product quality;
• sponsor category conflicts;
• athlete image rights misuse;
• post-termination sales;
• unauthorized sublicensing;
• use of event marks by non-sponsors;
• digital collectible rights disputes;
• consumer claims over fake official products.

Most disputes arise because rights are not defined clearly, monitoring is weak or enforcement starts too late.

Remedies for Unauthorized Sports Merchandise

Rights holders may seek:

• cease-and-desist letters;
• marketplace takedowns;
• customs seizure;
• injunctions;
• damages;
• account of profits;
• destruction of counterfeit goods;
• domain name transfer;
• social media takedowns;
• criminal complaints in counterfeit cases;
• platform seller suspension;
• settlement with undertakings;
• public clarification notices.

In urgent cases, interim injunctions may be necessary, especially during a major tournament or limited product launch. Delay may allow counterfeiters to sell out before the case is heard.

Practical Checklist for Clubs and Federations

Clubs and federations should ask:

• Are all key marks registered in target markets?
• Are licensing agreements written and current?
• Are product categories clearly defined?
• Are licensees subject to quality control?
• Are royalties audited?
• Are online marketplaces monitored?
• Are customs recordals in place?
• Are sponsor conflicts checked before product approval?
• Are athlete image rights cleared?
• Are post-termination sell-off rules enforceable?
• Are counterfeit reporting channels available for fans?
• Are digital merchandise rights separately regulated?

Practical Checklist for Licensees and Manufacturers

Licensees should ask:

• Do we have a valid written licence?
• Which exact marks can we use?
• Which products are covered?
• Can we sell online?
• Can we sell internationally?
• Are sublicences allowed?
• Are product samples approved?
• Are packaging and tags approved?
• Are sponsor conflicts reviewed?
• Are royalty calculations clear?
• Are factories and suppliers compliant?
• What happens to stock after termination?
• Are we allowed to use player names or images?

Practical Checklist for Athletes

Athletes should ask:

• Who controls my name and image for merchandise?
• Do I receive royalties from player-name products?
• Can the club sell my image after I leave?
• Can I launch personal merchandise?
• Does my club contract restrict personal branding?
• Do my sponsors have category exclusivity?
• Are digital collectibles covered?
• Can my signature be used commercially?
• Who approves products using my likeness?
• What happens to unsold products after retirement or transfer?

Practical Checklist for Fans

Fans should ask:

• Is the seller official or authorized?
• Does the product carry authenticity tags?
• Is the price suspiciously low?
• Is the website legitimate?
• Are refund rights clear?
• Is the product described as official?
• Does the seller provide contact details?
• Is payment secure?
• Is the signature authenticated?
• Is the product being sold through a trusted club, event or licensed retailer?

Common Legal Mistakes in Sports Merchandising

Common mistakes include:

1. producing merchandise without a written licence;
2. assuming fan art can be sold commercially;
3. using club colors and crest-like designs to imply association;
4. selling products outside licensed territory;
5. using player names without image rights clearance;
6. ignoring sponsor exclusivity;
7. failing to audit licensee sales;
8. not registering trademarks in key markets;
9. failing to monitor online marketplaces;
10. allowing poor-quality licensed products;
11. selling stock after termination without permission;
12. treating digital merchandise as legally different from physical merchandise;
13. using event logos for “inspired by” products;
14. failing to control factory overruns;
15. responding too slowly to counterfeit sellers during major events.

Conclusion

Merchandising rights in sports are powerful commercial assets built on intellectual property, brand loyalty and fan identity. Clubs, athletes, federations, leagues and event owners must protect these rights through trademark registration, licensing agreements, quality control, online enforcement, customs action and consumer education.

A strong sports merchandising strategy begins with clear ownership. The rights holder must know which marks, designs, images and product categories it controls. The licence must define territory, products, royalties, quality standards, sponsor conflicts, online sales and enforcement duties. Athlete image rights must be handled separately where necessary. Digital merchandise must be treated with the same legal seriousness as physical products.

Unauthorized products and counterfeits harm official licensees, confuse consumers, reduce revenue and weaken brand value. Enforcement should be fast, evidence-based and proportionate, especially during major tournaments and product launches.

In modern sports law, merchandising is not just retail. It is brand protection, intellectual property management and commercial strategy. The most successful sports organizations are those that turn fan passion into lawful, high-quality and well-protected merchandise ecosystems.