University sport in South Africa is producing growing commercial value through sponsorship, broadcasting and digital engagement. As World Intellectual Property Day is celebrated on 26 April, SMF News takes a look at the Intellectual Property (IP) landscape for university rugby players, who, like most South Africans, do not know they have a lucrative asset in IP.
This year, the World Intellectual Property Organisation (WIPO) has chosen the theme, “IP and Sports: Ready, Set, Innovate”, seeking to raise awareness about how intellectual property rights shape everyday life. The theme centres around the role that patents, trademarks, design and copyright, such as team logos on sports kits, play in powering the global sports industry.
Branding, sponsorship and merchandise form part of the intellectual property ecosystem in varsity sport. PHOTO: Supplied/Courtney de Klerk
“The value of the Varsity Cup has definitely grown over time”, said Drikus Hancke, head of rugby at Stellenbosch University,at a webinar hosted by Stellenbosch University’s Innovus Technology Transfer Office (TTO) as part of the university’s World IP Day programme.
That growth, however, is not limited to the field. University sport now operates across three different realms: performance, media and commercial activity. “Almost every decision we make in sport touches intellectual property in some way,” Hancke said, speaking on branding, content production, sponsorship exposure and athlete image.
A rise in fan engagement forms part of the growing commercial value of varsity sports. PHOTO: Supplied / Courtney de Klerk
As the commercial ecosystem grows, so does the complexity of what is being created and owned. Hancke said that digital tools are introducing new forms of value. “Data is becoming one of the most valuable assets in sport, but governance and ownership are still catching up,” he said.
This gap is not only operational, but also legal. IP in sport stretches across multiple rights, including trademarks, copyright and personality rights, often layered within sponsorship and licensing agreements. “Most of it comes down to education,” said Andrè J Maré, the head of trademark and commercial IP at Von Seidels, an African intellectual property law firm based in Cape Town. “Young people, especially athletes and content creators, often don’t understand what they have or how to commercialise those assets,” he added.
This lack of understanding results from, in part, the regulatory limits that continue to exist. “South Africa is very, very far behind when it comes to things like image rights,” Maré said, pointing to the absence of a clear framework governing the commercial use of an individual’s likeness.
Action on display during a Varsity Cup game between FNB Maties and NWU Eagles. Varsity sport is becoming more commercially valuable. PHOTO: Supplied/ Courtney de Klerk
At a policy level, this disconnect is acknowledged. Jetane Charsley, head of the National Intellectual Property Management Office (NIPMO) under the Department of Science and Innovation, said innovation is outpacing awareness. “More and more youth are creating new content, ideas and technologies,” she said. “At the same time, understanding of how to protect this creative work […] is not yet widespread,” she added.
Charsley said one of the main gaps is practical knowledge, particularly in distinguishing between creating something and owning the legal rights to it, as well as navigating ownership in collaborative environments.
For those operating within the system, this plays out in more immediate ways. “I truly view myself as a primary athlete, but also understand that through performance comes the commercial,” said FNB Maties Varsity Cup captain and scrum-half, Ezikiel Ngobeni, acknowledging that strong performances attract sponsors and stakeholders.
However, the benefits remain largely indirect. “The reward […] is to take the next step ahead of just university sports,” he said. Ngobeni added that there is room for change. “Athletes should be done right and treated in a professional and rightful manner,” he said.
SMF News asked FNB Varsity Cup tournament manager, Anoushka Swart, with questions about the evolution of Varsity Cup as a commercial product, but she was not able to provide comment at the time.