1. UPDATE ON PVA PROCESS TO PORTFOLIO COMMITTEE Iqbal Meer Sharma 5 February 2009

2. 2 Contents 1. Background and strategic link to Sporting events such as FIFA 2010 2. Enabling environment 3. Economic Opportunities 4. Public View Areas (PVAs) 5. Implementing PVAs

3. 3 Background and strategic link  Large sporting events are made possible because of the substantial amounts of money paid by sponsors, and these sponsors require that their rights are protected. Government gives this protection to large events on the basis that they are in the public interest.  In this regard parliament has in the past established legislation that protect investors in the sporting sector, including:  Trade Practices Act  Merchandise Marks Act  Special Measures Act; and  general intellectual property legislation.  Events covered include: World Cricket Cup, Twenty20 World Cricket Cup, Rugby World Cup (Guarantees for 2011),Cape Argus Cycle Tour and FIFA 2010 World Cup.

4. 4 Enabling environment In order to host the FIFA 2010 World Cup Government had to provide the following guarantees: –Home Affairs: Entry & Exit permits; work permits; immigrations, customs & check-in procedures –Finance: Customs duties and taxes, banking, foreign exchange and exemptions –Foreign Affairs – Entry and Exit Permits, National Anthems and Flags –Safety& Security: General public safety & VIP/personnel protection –Communications: Telecommunication, Information and Technology, Broadcasting –Transport: necessary infrastructure - an efficient transport system –Environment &Tourism: Hospitality services especially Accommodation, pricing policy –Trade & Industry: Intellectual property and event rights protection e.g. FIFA’s ownership of media and marketing & broadcasting rights –Justice: Indemnity –Health: Medical Care

5. 5 Enabling environment  For FIFA the dti had to guarantee that intellectual property (IP) legislation dealing with ambush marketing will be in place.  An array of legislation deal with IP protection of FIFA, affiliates and sponsors:  Trade Marks Act  Designs Act  Copyright Act  Merchandise Marks Act  Trade Practices Act  Counterfeit Goods Act  Special Measures Act  Common law principles also apply.

6. 6 Parameters Intellectual property  Minister has issued a Notice that designate 2010 FIFA World Cup as a protected event.  The Minister also issued another Notice that deals with Prohibited Marks of FIFA - prohibiting the use of certain words, letters emblems, devices and numerals as per Government Gazette no. 30595.  Conditional prohibition, e.g. for a limited period, connectivity between “the infringement” and FIFA activity.  Balancing interests of FIFA and those of the public.  Absolute prohibition applies generally for protection of national symbols such as coat of arms and heritage signs. The law of trade marks provides that a person should make use of the trade mark in a commercial area (investment), otherwise protection is lost. This perpetual protection of Marks by this section may lead to non- investment after 2010 FIFA World Cup by FIFA. Thus why the Minister granted conditional prohibition.

7. 7 Parameters Intellectual property Enforcement of the Notice and other IP legislation will be done by law enforcement agents such as SAPS, SARS, the dti inspectors, National Rights Protection Committee and the courts.

8. 8 Economic Opportunities  2010 is an opportunity to speed up growth and development, to market this country and the continent to the world; and an opportunity to grow local entrepreneurship.  In providing IP and Trade Marks guarantees to FIFA, it was a condition that opportunities should be created for small businesses and those from previously disadvantaged communities.  Therefore in return for providing “protected event status”, opportunities that flow from this status include:  30% budget of the LOC for small businesses.  BEE to be applied in the procurement of services of LOC  The LOC submit a report to the Minister on economic and social impact assessment of the World Cup  Government will obviously also apply small business and BEE procurement processes in its own 2010 spend

9. 9 Economic Opportunities  One of the objectives decided upon was that there should be a programme to ensure that business opportunities reach SMME’s and cooperatives.  In this regard the dti is conducting business opportunity workshops at each host city in coordination with provinces and the FIFA LOC with the following objectives:  Create awareness on how SMME’s can access real business opportunities within host cities.  A catalogue of opportunities per host city and eventually a website to pool all opportunities.  Education on LOC and Government procurement processes, tenders and technical requirements to qualify.  Intellectual property rights as well as accessing SMME support services from the dti and its economic development agencies.  The target audiences for the workshops are SMME’s and their respective representative bodies that are currently registered and effectively operational, with potential to exploit 2010 opportunities over the short, medium and long term in the build up to the 2010 FIFA World Cup.

10. 10 Economic Opportunities  Progress:  The first workshop in Mbombela was done on 13 February 2008.  Subsequent workshops have also been undertaken in Gauteng (as part of the province’s initiatives), Port Elizabeth, Mangaung, Cape Town, Polokwane and Tshwane.  Planning workshops in Durban (KZN-Ded still to advise) and Rustenburg (January 2009)  Continuing collation of inputs on economic/business opportunities for small businesses from other departments, host cities, provinces, National Sponsors of FIFA, as well as the LOC.  A website will be launched later profiling these collated opportunities, which will be updated regularly  The department is in discussion with SRSA and the LOC to have another round of workshops in host cities in 2009, to be launched with a national event planned for early 2009.  Another focus is the replication of economic opportunities within the SADC and the African Region as a whole.

11. 11 Economic Opportunities  2010 Economic opportunities can be linked to the following:  Government spend – Infrastructure  LOC/FIFA Partners and Sponsors spend  Other economic opportunities not directly linked to Gov/LOC Spend  Economic opportunities cover the following sectors:  Infrastructure (Construction, Transport and ICT)  Hospitality, Travel and Tourism  Services  Arts, Culture and Craft  Products and Brands  Public Viewing Areas (PVAs)  Government spending mainly coordinated by National treasury/Department of Sports and Recreation and implemented by Host Cities, supported by Provinces.

12. 12 FAN PARKS and PVAs Many tourists and local population will be viewing the matches in the stadiums. Most of them will be in the “fan parks” and “public viewing areas”. Designated fan parks will allow fans who do not have tickets to enjoy the action on high definition big screen televisions, at secure venues. Fan parks are owned by FIFA and FIFA terms and regulations apply. However, public viewing areas are not owned by FIFA and are initiated by municipalities. Public viewing areas (PVA) are managed by municipalities. Outside host cities PVAs can attract a lot of viewers. Non- sponsors of FIFA can also sell their products and display their brands without restrictions, as long as they do not ambush FIFA event. Viewers will not pay an entrance fee in PVA.

13. 13 FAN PARKS Commercial Public Viewing Event:  A Public Viewing Event is considered a “Commercial Public Event” if the person or entity who organises and/or stages it (the “Exhibitor”) stages it for commercial purposes. An Exhibitor is considered to stage a Public Viewing Event for commercial purposes if, for example:- a direct or indirect admission fee is charged for the exhibition of the broadcast coverage; and/or sponsorship or other commercial rights of association are exploited relating to the event. Public Viewing Events in “Commercial Establishments”, such as pubs, clubs, restaurants and bars, are NOT deemed to be Commercial Public Viewing Events unless further commercial activities, such as admission fees or sponsorship activities, take place in relation to their public viewing activities

14. 14 FAN PARKS  Within Trade Marks/IPRS legislation Fan Parks together with Stadiums and their exclusion zones are within the FIFA domain  Therefore the commercial rights of FIFA and their partners are in place within Fan Parks.  The implementation of Fan Parks are determined by FIFA/LOC in coordination with the Host Cities.

15. 15 PVAs Non - Commercial Public Viewing Event:  A Public Viewing Event is considered a “Non-Commercial Public Event” if the person or entity who organizes and/or stages it (the “Exhibitor”) does NOT stage it for commercial purposes. An Exhibitor is considered to stage a Public Viewing Event for commercial purposes if, for example:- A direct or indirect admission fee is charged for the exhibition of the broadcast coverage; and/or Sponsorship or other rights of association are exploited in relation to such event. Public Viewing Events in “Commercial Establishments”, such as pubs, clubs and bars, are deemed to be Non-commercial Public Viewing Events unless further commercial activities, such as admission fees or sponsorship activities, take place in relation to their public viewing activities.

16. 16 Implementing PVAs Role of the National, Provincial and Local Governments Ensure that all logistics relating to PVA’s are in place including: –Safety and Security of PVA’s –Availability of Public Viewing screens –Reliable system of public transport to and from PVA’s –Ensure availability of basic public amenities such as toilets and safe drinking water –Ensure broadcast friendliness of PVA’s with regards to lighting, electricity and telecommunications connectivity for anticipated duration of Public Viewing Events. –Coordinate SMME’s involvement in terms of economic opportunities such as food, and arts and craft stalls, subject to full compliance with FIFA marketing regulations –SABC to provide free signal to PVAs

17. 17 Implementing PVAs In order to implement PVAs Provinces and Host Cities have initiated preparations. To ensure that broadcasting to PVAs take place Department of Communications and SABC have been engaging on technical and legal issues since late last years. In December 2009 the Technical co-ordinating Committee (TCC) requested the establishment of a working team to advance the co-ordinated implementation of PVAs On 15 January 2009 the work team, co-ordinated by SRSA and the dti, held an interdepartmental meeting with provinces. The meeting set out a clear and urgent implementation mechanism to build on provinces/host cities current preparations and to ensure a coordinated approach to roll - out

18. 18 Implementing PVAs In the meeting it was agreed that the working team, based on inputs from national government departments, provinces and host cities, will in coming weeks finalise a set of criterion which PVAs should satisfy on the following: –Legislation –Executive decisions –Site requirements –Coordination of PVAs –Safety and security matters –Health and disaster management –Broadcast and other ICT requirements –Relations to 2010 FIFA World Cup Commercial Affiliates

19. 19 Implementing PVAs It was agreed, based on health, safety and other considerations, that PVAs will likely be limited to around 1/district for the 47 districts. Once the specifications (soon) finalised, provinces will co- ordinate with districts implementation at district level. Although main role-out of Fan Parks and PVAs will be in 2010, Provinces made an indication that sites have been identified to test some of the PVAs during the 2009 FCC. The site selection for FCC will be made by provinces in light of funding and ability to meet PVA specifications. Regular meetings of working team, including provinces are continuing to advance implementation.

20. 20 END THANK YOU