Financial Data
Updated 26 Feb 2020


Does your advertising and marketing material meet legal requirements?

Management must ensure that someone has considered the legalities, so the only thing popping up from advertising, is higher revenues.

 


Andrew Papadopoulos, 17 May 2016  Share  0 comments  Print


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Business owners generally delegate marketing to its in-house creative department or out-source it to an agency. Proposals are presented to the directors and, once approved, the campaign is rolled out, new stationary is printed, water bottles are branded and the website is updated.

However, was the creative process and outcome assessed, from a legal perspective?

Management likes to see projected return-on-investment (ROI) before allocating budget to a specific project, however one area for where it is difficult to determine ROI is legal expenditure.

Related: Advertising cheat sheet

When considering whether to evaluate marketing campaigns and material from a legal perspective, it is important to understand the concerns involved:

1. Creating the concept

Once you have settled on a concept for the advertisements, you should ensure that the concept has not been ‘borrowed’ from someplace else.

Ask the hard question – how did you come up with that? Very few ideas are truly unique, but so long as the concept cannot be attributed to one single campaign (in South Africa), it is not likely to be a problem. It is advisable to keep records on how and when your concept was developed.

If it is found that the concept has already been used by another company (and it is unique to the South African market), copying of that concept could be seen as taking advantage of the other party’s advertising goodwill, in terms of the Advertising Standards Authority (ASA) code.

The argument that the concept is used by another advertiser but in relation to a different industry is not relevant when it comes to an advertising complaint.

2. Avoid trade mark infringement

Trademark -logo

Other than your own trade marks (which should already be protected), the campaign may yield new marks and/or slogans which are pertinent to the theme of the entire campaign. It is vital at the outset, once these marks and/or slogans have been identified, to conduct clearance searches of the Trade Mark Register so as to ensure the marks or slogans do not belong to anyone else.

The marks and/or slogans may have not been used yet, but if registered as trade marks in respect of the same or a related industry, you may be prevented from using them in your next advertising campaign.

You definitely do not want to be forced to withdraw your campaign, after it has only recently been launched, wasting all that advertising spend and incurring substantial cancellation costs in broadcasting and publication spaces.

Related: Advertising a position checklist

3. Protecting the campaign

On the flip side, once the campaign is a complete success, you will want some exclusivity to those marks and slogans, especially if the campaign is going to be running for several years.

Accordingly, you should consider registering your marks and slogans as trademarks, as soon as possible, preferably before your campaign is even launched.

There are a number of role players involved in developing and implementing an advertising campaign or marketing of a company or a specific brand, but it will be management who will have to deal with the consequences of any potential legal issues, which may pop up.

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About the author


Andrew Papadopoulos

Andrew is a director at KISCH IP, a South African law firm specialising in Intellectual Property law for more than 140 years. Andrew is all about trade mark law protection and enforcement in South Africa and across Africa, as well as all related Intellectual Property (IP) legal issues including copyright; IP portfolio management; trade mark licensing; IP litigation; and advertising, domain name and company name disputes.

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