Rights Agreements
Part of Sponsorship rights management
Preventing different sponsors from receiving conflicting exclusivity
Screen new sponsor offers against existing category, channel, location, time and exception commitments before promising exclusivity.
Before offering a new exclusive sponsorship, compare it with existing restrictions and open offers. Check the defined product or service category, restricted activity, channel, place, period and exceptions. Different sponsor labels can still describe promises over the same opportunity.
Record the promise behind the label
Keep the exact agreement wording and a working description of what the organiser has promised to restrict. “Exclusive partner” alone does not explain whether the promise covers sponsor status, an on-site activity, organiser-controlled advertising, purchasing from suppliers or some combination. Record named inclusions and exclusions as well as the category definition.
Identify where and when the restriction applies. An event-day venue promise may differ from a season-long restriction on organiser channels. Check who controls the relevant activity: a venue, broadcaster, stallholder or supplier may have separate rights. Do not offer to restrict a third party’s activity without confirming a basis for that promise.
Screen each new offer
| Dimension | Question |
|---|---|
| Category | Could the proposed products or services fall within an existing definition? |
| Restricted right | Would the new benefit grant a status or activity an existing promise excludes? |
| Channel and place | Does the proposed use fall within the covered setting? |
| Time | Do the relevant periods overlap? |
| Exceptions | Does a stated carve-out or existing third-party arrangement change the scope? |
This is a screening method, not a formula for interpreting a contract. For example, “payments” and “credit cards” might overlap depending on their definitions and the proposed use. A narrower label on the second offer does not settle the question.
Check signed agreements and authorised amendments, then check approved or still-open offers. Label an unsigned offer as proposed, but give simultaneous offers a clear decision path before either becomes a commitment. Record who can approve an exception and where the accepted change will be documented.
Screening a new sponsorship offer for exclusivity conflicts
- CategoryCould the proposed products or services fall within an existing definition?
- Restricted rightWould the new benefit grant a status or activity an existing promise excludes?
- Channel and placeDoes the proposed use fall within the covered setting?
- TimeDo the relevant periods overlap?
- ExceptionsDoes a stated carve-out or existing third-party arrangement change the scope?
Resolve an overlap before promising the right
Identify the existing clause and the exact new benefit that might conflict. Ask authorised commercial and legal contacts whether the new offer can be narrowed by category, activity, channel, place or period, whether another party’s consent is required, or whether the benefit must be removed. An informal expectation that two brands can coexist does not amend an agreement.
At a hypothetical festival, one sponsor might have exclusive on-site drink sampling while another proposal offers an “exclusive beverage partner” title. The titles alone do not decide the issue. Compare products, sampling activity, festival space, dates and exceptions, then record the authorised decision before using either description publicly.
Resolving an exclusivity overlap before promising the right
- Identify the overlapIdentify the existing clause and the exact new benefit that might conflict.
- Ask authorised contactsAsk authorised commercial and legal contacts whether the new offer can be narrowed by category, activity, channel, place or period.
- Confirm consent or removalConfirm whether another party’s consent is required, or whether the benefit must be removed.
- Record the decisionRecord the authorised decision before using either description publicly.
Keep public claims within scope
Give sales, event and creative teams the current restriction and recheck it when a new venue, activity or channel is added. Words such as “only” and “exclusive” should describe the right actually granted. The ACCC can require businesses to back up claims they make about their products or services.
