KT to Seek Damages from FIFA

Latest twist in the World Cup marketing battle between two telecoms giants. KT (formerly known as Korea Telecom) is set to take a hard stance on FIFA for its not taking actions against its archrival.

“We cannot but seek compensations from FIFA if it fails to take due measures,” said Yang Jae-su, manager of KT World Cup Team on June 21 in response to the soccer’s world governing body’s leniency – it decided not to exercise its intellectual property right against Korean businesses using the soccer event for their marketing purposes.

“We have asked FIFA to take actions against SK Telecom for taking advantage of the World Cup without being an official sponsor,” said the manager, “but nothing has been done so far.” And he added that FIFA must be held accountable for failing to protect the intellectual property it bought for tens of billions of won.

KT is also set to file a formal complaint to the National Football Association, citing SK Telecom’s ad saying “Speed 011, Power of Korean Football” is an infringement of its intellectual property right.

“We considered the legality of this issue before producing the ad and found no problem,” refuted SK Telecom. “You cannot argue that only official sponsors are allowed to engage in World Cup marketing.

“Our ad does not encroach upon FIFA’s intellectual property right,” said Lee Hee-hyok, head of SK Telecom promotion team. “Instead, it helped pan out street cheering, phenomenal World Cup culture in Korea.”

Sports marketing experts also see it unlikely for FIFA to sue SK Telecom as demanded by KT. “The International Olympic Organization brought such a case of ambush marketing to a U.S. court only to lost the case,” said Kang Jung-ho, professor of sports marketing at Seoul National University.

“If FIFA files a lawsuit against SK Telecom and lose, this will end up wide opening the door for ambush marketing.” “SK Telecom will mark the first case of ambush marketing that successfully mobilized cheering squads,” said an official from Cheil Communications. “Although FIFA is not likely to take legal actions this time, it will set up safeguards to prevent the same thing from happening in the 2006 Germany World Cup.”

Byong-Ki Lee eye@donga.com