A German court's unprecedented ruling on the extent to which the names "World Cup 2006" and "Soccer World Cup 2006" are protected trademarks will make it easier for companies throughout Europe to use the soccer event in their marketing campaigns.

The German Federal Court of Justice (BGH) ruled April 27 that neither name has any distinctive characteristics, and is therefore not a protected trademark of the tournament's governing body, the Federation of International Football Associations (FIFA).

German companies have welcomed the decision because it allows businesses that aren't official partners of the World Cup or FIFA to associate themselves with the world's largest sporting event in their advertisements. But the impact of the ruling will be felt beyond Germany.

It is significant to businesses throughout Europe because, though not legally binding outside German courts, it sets a precedent for how soccer authorities in other European Union countries should approach World Cup trademark rights.

"In principle, companies will now be able to at least use the designation 'Soccer World Cup 2006' without a risk in Germany — and most likely also in the Czech Republic — that they're infringing upon FIFA's rights," Barbara Kusak, a lawyer with the Germany-based international law firm Nörr Stiefenhofer Lutz, told The Prague Post.

Companies and marketing agencies will also be able to use images associated with the World Cup, but distinctive FIFA trademarks such as "FIFA World Cup 2006" remain off limits without the appropriate licenses, she said.

Czech infringement issues

The ruling could be said to have particular significance to Czech companies, which are expected to spend 300 million Kč ($14 million) on World Cup–related advertising. That's because the Czech Soccer Association (ČMFS) says that only official partners of the FIFA World Cup and the Czech national soccer team can reference the event and the team in their marketing campaigns.

Two companies, Nestle and Bohemia Chips, have already fallen under the scrutiny of the ČMFS for using "Soccer World Cup 2006" in successful promotions running up to the event.

"The response from customers was immediate and [the campaign] generated great interest. ... More and more people are joining in," said Nestle spokesman Martin Walter.

The ČMFS, however, says these campaigns are illegal because the companies aren't official partners of FIFA or the ČMFS.

"The companies are unlawfully using the national team's themes for making themselves more visible, and they are harming the official ČMFS partners," said Jan Kinda, director of STES, which handles marketing for the ČMFS.

He said STES has recommended the ČMFS take legal action against them, but, after the decision in Germany, it's unlikely the association would win because neither company uses FIFA in their ads.

FIFA's responsibility

Lawyers at Nörr Stiefenhofer Lutz said they were not aware of any illegal use of FIFA's registered trademark here.

Jan Krekel, a partner at the firm's Munich office, said it is FIFA's responsibility to monitor this. If the federation believes its trademark is being infringed upon, it has the right to ask the party to stop using it and apply for a preliminary injunction.

EU accession has made it easier for all holders of trademarks to protect themselves here, Krekel said.

"Although under Czech law it was ... not really possible to obtain preliminary injunctions, it is now after accession to the Community Trademark system," he said.

FIFA hasn't filed any infringement complaints in this country yet.

Getting creative

While the ruling gives many companies a lot of latitude to associate themselves with the World Cup, it will also flood the field with similar advertisement campaigns, so creativity will be key, according Krekel.