Image rights in top sport in Hungary.

• Author: Nemes, Andras

1. Introduction

   When the concept of "image rights" was introduced in Hungary there was no literature whatsoever on the subject and not even an official scientific name for it in Hungarian. There is no Hungarian translation for the English word "image right". Neither English-Hungarian dictionaries, nor Hungarian explanatory dictionaries give a proper definition. There were some attempts to substitute the English word "image" by Hungarian equivalents like "picture", "model", "general design", "face", "shape", "icon", "brand", etc. but this only partly covers the athletes' image right which is a personal right of the athlete only. We also tried to find an appropriate word for "image rights" in our study.

   Image rights related to top sport mostly operate on a contractual basis in Hungary. The Law on Sport (Act I of 2004 on Sport; hereinafter: "Sports Act") provides only the legal framework. The Hungarian Civil Code which is presently in force allows image right agreements to be brought under the heading of "non-typified contracts". The new Hungarian Civil Code give more significance to the concept of "image rights", as well as to personal rights generally.

   Before we can give a clear and comprehensible picture of the Hungarian rules on "image rights", we again have to emphasize the difficulty in finding a Hungarian version of the term: the so called "image-use agreement" for example is similar but falls slightly outside the rules of sponsoring. However, we here try to introduce the term "arculati jog" as a definition of "image right" in Hungarian sport.

2. The image right of the athlete as a transferable personal right

   Business partners (commercial entities) who wish to make use of an athlete's image in their marketing activities try to find a popular athlete who fits in with the image they want to create of the promoted product. The business partner uses the famous and popular athlete's name, image, typical movements, slogan, etc. and the name, logo and prestige of the athlete's sport club or sport federation in exchange for consideration that is capable of being expressed in money. Usually, the main element of the contract is when the mentioned image items appear in the advertisements and publications of the business partner. Those items may be displayed on different surfaces which belong to the business partner (posters, flags, walls, umbrellas and other surfaces) but may be displayed on general objects as well, such as cigarette lighters, tie pins, etc. (known as "charming little trifles management" ("csecse-becse menedzsment") (1). The aim of the image-use agreement is to tempt costumers and influence their decisions. Nowadays this kind of contract is becoming more common. This is caused by the popularity of famous athletes and by the fact that a number of companies have recognized the exceptionally high "commercial power" of sport in Hungary.

   The terms of the image-use agreement cover a wider category of issues than the sponsorship contract. The former entitles the sponsor to absolute display and use rights (name, image, etc.) whereas the latter only enables the sponsor to display its logo during the athlete's sport activity.

   It is widely accepted that images in sport exclusively belong to the market. However, some argue that image-use agreements are specialized instruments for personality protection given that through their operation an athlete's name, image etc. is publically displayed on goods, posters, etc. Accordingly, if a sport club or federation intends to enter into an agreement where the other party would use the name and image of an athlete, this athlete has to give his prior written consent; the agreement without such consent is invalid. This is the governing rule also for other kinds of advertising agreements affecting the athlete's name or image.

   The role of transferable valuable rights attached to sport activity is daily increasing together with the revenues in modern sport. The most valuable rights are television and radio broadcasting rights, but the role of other means of electronic distribution, such as Internet, is also increasing. This is extremely relevant because according to the provisions of the Sports Act not only the federations should profit, but also the younger generation of athletes. Broadcasting therefore cannot take place free of charge.

   Generally, national sport federations lay down the conditions for image use in their bylaws. Those rules apply to their top athletes and famous coaches.

   The national sport federations try to protect every detail of the use of advertising rights by means of legal guarantees relating mainly but not exclusively to sport events and competitions.

   After the political changes in Hungary, numerous returned businessmen tried to profit from the lack of regulation. All they had to do was implement the foreign rules. This situation also occurred in the field of broadcasting. During the socialist period sports clubs were paying television channels to appear on them. Broadcasting rights simply did not exist. They became known when the commercial channels obtained them instead of the national (State) television channels.

   Image rights made their appearance through top athletes, the Olympic, World and European championships and successful market operators. Successful athletes certainly make market operators' goods or services more attractive for business partners or customers.

   Athletes thus operate on the...