Racing Ahead: A Comprehensive Guide to IP in MotoGP

Racing Ahead: A Comprehensive Guide to IP in MotoGP

 

The 2023 Mandalika MotoGP in Indonesia on October 15 again brought Ducati racer Francesco Bagnaia to the top of the standings with 346 points. The event, officially called “Pertamina Grand Prix of Indonesia 2023”, is the 15th race of the 20 MotoGP World Championship series, which is in a year generating a turnover of around 500 million Euros or about 8.3 trillion Rupiah.

 

Dorna Sports S.L., a company from Spain that has held MotoGP Commercial Rights from the Fédération Internationale de Motocyclisme (FIM) since 1992. In Dorna’s hands, the fastest motorbike racing event on land has become the most expensive in the world with its Intellectual Property business. In 2021, Dorna Sports successfully recorded 137 million Euros just from selling Broadcast Rights to various TV and streaming platforms to broadcast each competition live. Income from Broadcasting Rights is said to reach 66% of the total income from all Intellectual Property (IP) businesses carried out. So, what other IPs are related to the implementation of MotoGP?

 

• • Trademark

The first is, of course, MotoGP’s unique naming and logo. Dorna has registered MotoGP in 22 existing Trademark classes, whose protection extends to 53 countries worldwide. Of the 22 Trademark classes, it includes class 25 (clothing, shoes, hats), 28 (toys), and 30 (tea & coffee), apart from, of course, class 41 (sports activities), which is the core of its business. In Indonesia, the “MotoGP” Trademark is still protected until 2027 and can be extended every ten years.

 

Apart from that, Dorna also registered Trademarks for various derivative businesses related to MotoGP, such as MotoGP Kids, MotoGP VIP Village, and MotoGP Legends. By registering all the Trademarks, Dorna has become the owner of the Exclusive Rights to MotoGP and prevents the possibility of other parties registering identical or similar names in the future.

 

• • Copyright

Race materials, images, promotions, and other content related to MotoGP are included in the Copyright category. As the holder of Commercial Rights to MotoGP, Dorna also owns the Copyright to MotoGP. Thus, it has the right to regulate and control the use of all Copyrights related to MotoGP, including Broadcast Rights, to broadcast the race live on various platforms worldwide.

The granting of Broadcasting Rights licenses is the most significant income for Dorna. It has been recorded that from 2015 to 2021, except for 2020, there has always been an increase in revenue from Broadcasting Rights. It started from 105, 115, 125, 135, 130, and 137 million Euros (around 2.3 trillion Rupiah) in 2021.

For the 2023 MotoGP World Championship, there are more than 90 channels that are official broadcasters, representing 63 countries in the world. In Indonesia, MotoGP broadcast rights are held by Trans7, MNC Vision, KVision, UseeTV, and Maxstream-SpoTV.

 

• • Patent

A large-scale sports competition, especially one related to the automotive industry, indeed cannot be separated from technological inventions, whether closely related to engine construction and speed or safety equipment, which are objects that can be patented.

MotoGP has also become a place for innovation competition between motorbike manufacturers and safety equipment to get maximum exposure before the technology is applied to commercial products sold to the public.

 

• • Industrial Design

Suppose the design of a motorbike, riding equipment, safety equipment, and other racing equipment does not contain elements of inventions but still has an aesthetic novelty design. In that case, it can be registered and receive Industrial Design protection. The most straightforward example is the commercialization of helmets used by MotoGP racers.

 

• • Trade Secret

Specific racing strategies are Trade Secrets, including technical details and other confidential information. These secrets give MotoGP teams a competitive advantage by not disclosing certain important information to competitors, and all team members involved are bound by a Non-Disclosure Agreement (NDA).

 

• • Domain Name
    

Domain names related to MotoGP are significant for maintaining online presence and marketing. Dorna has registered “motogp.com” to prevent cybersquatting and brand misuse. This domain is also available in many languages, including Indonesian, to facilitate the marketing and disseminating of official information to all media and MotoGP fans worldwide.

 

• • Licensing Agreement
    

Apart from the Copyright previously mentioned, the License Agreement can also cover other Intellectual Property regimes, such as Brand Licenses to produce and sell merchandise, mobile phone applications, video games, and many more. Because if we talk about business, a robust Intellectual Property License Agreement can mutually benefit all parties involved.

 

From Dorna Sports’ financial report in 2021, more than 100 million Euros were spent on organizing MotoGP. However, they managed to record a profit of 46 million from revenue of 207 million Euros. This figure is undoubtedly quite fantastic for sporting activities supported by solid IPs.

 

Because a successful sports business is also an Intellectual Property business, would you be serious about getting into it? In that case, you can start on the most miniature scale, from events that are local but have the potential for a broad audience, and continue to present exciting and competitive matches so that more and more parties are interested in joining in getting a license.

 

If you need further information about Licensing Agreements, Trademark registration, Patent protection, or anything related to Intellectual Property, please do not hesitate to contact us via [email protected].