Protecting IP in Sports & Business: Why an IP Entity Matters

In sports and sports-related businesses, intellectual property (IP) is often a company’s most valuable asset—whether it’s trade marks, copyrights, know-how, or trade secrets. Yet, many businesses hold their IP inside the trading company, exposing it to unnecessary risk.

The Risk in Action

Consider a sportswear brand that holds its trade marks, branding, and proprietary designs in its trading company. If the company is sued or becomes insolvent, creditors can seize the brand name and IP assets, meaning the owners lose control over their most valuable asset.

How an IP Entity Helps

Instead of holding IP in a trading company, many businesses set up a separate IP entity that licenses the brand and IP back to the operating business. This approach:

• Protects valuable IP from operational risks;

• Creates a revenue stream through licensing; and

• Facilitates structured expansion into new markets.

Expansion & Growth

For businesses looking to expand locally or internationally, an IP entity makes it easier to license the brand to subsidiaries or franchise partners while keeping ownership centralised.

Key Considerations

If a business is already operating, an IP assignment is required to transfer ownership. Further, legal and accounting advice is critical to ensure tax and structuring compliance.

This model is widely used in global sports, apparel, and entertainment ventures. While it won’t suit every business, it’s a powerful strategy for those looking to scale while protecting their long-term value.

If you’re looking to protect your intellectual property and explore strategic growth options, get in touch to discuss how an IP entity can support your business expansion and safeguard your valuable assets.

Matt Krog

Director