For this week’s entry in our Intellectual Property practice’s BL Business Branding series, we are exploring the trademark implications surrounding the Kansas City Chiefs’ potential “three-peat” Super Bowl run, and how an NBA legend stands to benefit if they can pull it off.
This weekend, the Chiefs make a run at history trying to be the first NFL team to win three consecutive Super Bowls as they face off against the Philadelphia Eagles. But the idea of a “three-peat” is not new to the sports world, with the NBA’s Chicago Bulls and Los Angeles Lakers accomplishing the feat in the 1990s and 2000s, and the MLB’s New York Yankees pulling it off in 2002. The unexpected winner for each of these triple championships? Pat Riley.
Current NBA executive and former player and coach Pat Riley owns multiple trademarks related to THREEPEAT, THREE PEAT, and 3 PEAT following the Lakers’ historic back-to-back championships in 1987 and 1988 while he was their coach. Seeing the potential for a third consecutive championship, Riley filed for and acquired several “three-peat” trademarks to secure the intellectual property for the term. While his Lakers ultimately lost to the Heat in the 1989 Finals, Riley’s company, Riles & Company Inc., has continued to profit off his ambition through this IP.
Reports this week state that the Chiefs and Pat Riley reached a verbal agreement for the Kansas City team to use the “three-peat” term on their merchandise if they can take down the Eagles this Sunday, although nothing has been formally signed yet. If the Chiefs win, Riley is estimated to make 10-15% royalty on the wholesale price of each piece of merch that features his iconic intellectual property.
What Can Be Learned From This?
Trademarks can hold tremendous power and be an incredible investment for businesses and entrepreneurs. While original commercialization efforts may hit turbulence, owning a trademark and licensing it to others can create additional business opportunities. By carefully selecting beneficial licensees, trademark holders can tap into new revenue streams with royalties and grow brand awareness through increased presence in the market and exposure to new customers. On the other hand, the Chiefs avoided potentially costly litigation by communicating with Riley’s company before the big game. Had the Chiefs sold merchandise featuring the “three-peat” term without reaching a licensing agreement, Riley could have sued for trademark infringement and would have likely been entitled to a hefty payout for the violation, which would have soured the (potentially historic) Super Bowl Victory. For this trademark, everyone wins.
Read more about the ‘Three-Peat” trademark HERE
Have questions about trademarks or licensing agreements? Contact our BL Trademark Team by reaching out to Seth Berenzweig at sberenzweig@berenzweiglaw.com today.