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Prize promotions marketing campaigns face issues relating to the limits of usage of the offered prizes as part of advertising initiatives run by promoters in relation in particular to online prize promotions.
Promoters offering prizes as part of prize promotions have necessarily to refer to the offered prizes in the terms and conditions of a prize promotion, but legal restrictions may apply to the usage of trademarks and images of prizes as part of marketing initiatives and advertisements relating to prize promotions especially if performed online.
The two main intellectual property principles to consider in assessing the legality of such practice are:
Principle of exhaustion of trademark rights
The principle of the exhaustion of the rights conferred by a trademark under which a trademark owner is not entitled to prohibit the usage of his trademark in relation to goods which have been put on the market in the European territory under that trademark by the owner or with his consent.
Principle of usage of trademarks with descriptive purposes
The principle of usage of third parties’ trademarks with descriptive purpose under which trademark rights shall not entitle the owner to prohibit a third party from using it where it is necessary to indicate the intended purpose of a product or service.
The main issue pertains to the restrictions applicable to the above mentioned principles that shall be assessed on the basis of the peculiarities of prize promotions and of the relative advertising campaign. These complications are coupled in Italy with formalities required for the organization of prize promotions outlined here and become even more burdensome for prize promotions runs on social media that however as stressed in this post might be challenged.
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