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Sponsorship contracts

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Below is an explanation of each of the key terms of the SEQ Legal sponsorship agreements, highlighting the differences between the standard and premium versions.

Because the templates assume that an event is the subject of the sponsorship, some of the clauses will need a little more adaptation to be suitable for the sponsorship of locations, people, teams etc.

Term of sponsorship

The appropriate term of a sponsorship agreement will depend to some extent upon the subject matter of the sponsorship. For instance, an event may be sponsored for the period during which it takes place; a sports team may be sponsored for one or more seasons; a location may be sponsored for any defined period; and so on.

The template wording regarding the term includes two options: an indefinite term, or a term ending automatically at the end of the event that is the subject of the agreement.

Sponsorship benefits

This straightforward section creates the obligation to provide the benefits that are specified in the schedule to the agreement.

Sponsor trade marks

This section of the documents covers the following matters, concerning both registered and unregistered trade mark rights:

  • supply of the trade marks and (where appropriate) the style guide governing their use;
  • the licensing of the right to use the trade marks in relation to the sponsored subject matter;
  • an acknowledgement that all rights in the trade marks will accrue to the sponsor;
  • a requirement that the instances of the use of the trade marks be of professional quality;
  • a stipulation that the use of the trade marks must not damage their value or enforceability;
  • a right for the sponsor to demand that usage of the trade marks stop;
  • a requirement that all usage of the trade marks conforms to the sponsor's style guide; and
  • a clause applying or dis-applying Section 30 of the Trade Marks Act 1994, which concerns rights for licensees to deal with the infringement of registered trade marks.

Company trade marks

This section is only included in the premium sponsorship agreement. It will be needed where the sponsor wants to use the trade marks of the sponsored person, event, etc.

The specific issues covered are the same as those referred to above in relation to the sponsor's trade marks.

Exclusivity - or no exclusivity

This clause is included in the premium document, but not in the standard document.

There are three alternative versions of the basic clause. In the first version, the sponsor is given general exclusivity. In the second version, the sponsor is given no exclusivity. In the third version, whilst other sponsors may be appointed, there is a prohibition on granting certain defined benefits.

There is also an optional provision specifying that the sponsor may not enter into any sponsorship agreement or arrangement in relation to competing events etc.

Other sections

Other provisions of the sponsorship agreements cover:

  • the amounts of sponsorship fees and the manner of their payment;
  • the warranties given by each party in relation to the agreement, the performance of the agreement and the trade marks;
  • indemnities in the event of trade mark usage infringing another's intellectual property rights;
  • limitations of liability; and
  • termination and effects of termination.