STEPHEN TOWNLEY
Solicitor, FCIArb
Legal Counsel, International Arbitrator, Neutral, Mediator:
IP, Sport, Entertainment, Intangible Asset Management and Brands
Accreditations:
– Solicitor (1978)
– Arbitrator and Mediator, Fellow Chartered Institute of Arbitrators (1999)
– International Neutral, Arbitrator and Mediator JAMS Mediation, Arbitration and ADR Services (JAMS) (2019)
– Arbitrator and Mediator, World Intellectual Property Organisation (WIPO) (2018)
– Arbitrator, Court of Arbitration for Sport (CAS) (1996)
– Mediator, Court of Arbitration for Sport (CAS) (2012)
– Industry Expert, Sports Sector, Singapore International Mediation Centre (SIMC) (2015)
ADR PROFILE – CROSS FUNCTIONAL EXPERTISE
A highly accomplished and experienced legal counsel and ADR specialist with over 45 years of success across law, business, and dispute resolution. Widely known as an "entrepreneurial lawyer." Founder and senior partner of Townleys, which was recognised as the first and largest boutique international IP law firm in the sports sector outside the US. It was graded by both Legal 500 and Chambers as the top legal practice in sport for nine consecutive years prior to its merger with a global 100 firm. Co-author of an early legal, business, and tax textbook on intangible asset management (IAM).
For 25 years, co-founder and chairman of a management consultancy, Active Rights Management Ltd (ARM), specialising in the rights and technology sector monetising IP and intangible assets through creating and executing the right model to maximise value. Clients of ARM have included Royal Ascot Racecourse and the BHB, the English Premier League (EPL) through Football Data Co, and the Singapore Sports Hub, among others. Through subsequently co-founding NetResult Ltd solutions were offered to major brand owners such as F1, FIFA, UEFA, NFL, and Football Data Co identifying piracy and theft of digital content with unlicensed streaming.
Finding cost effective solutions as a lawyer, investor and deal maker to create, evolve and protect IP and intangible assets led to a robust reputation globally across sport, entertainment, content, media, technology, finance, and investment. This experience provided the backdrop and motivation to explore why and how commercial relationships sometimes sour and end in conflict. Assessing the best methods, tools and resources both inside and outside organisations to prevent escalation and resolve the conflict is then the priority. Resources may already exist within an organisation that can be mobilised effectively with advice and guidance. Not all tools need to be formal, although some will be, such as arbitration. All business relationships are sustained through trust. One of the risks of litigation apart from cost and disruption to business, is that it can permanently damage that trust and make future dealings difficult. Considering ADR alongside risk management strategies in organisations should prove a sound investment in long term sustainability and in doing so impact the bottom line of any business.
Deep experience has therefore been acquired internationally in arbitration, mediation and ADR both as legal counsel and ADR practitioner. As arbitrator acted as chairman and panellist. Currently based in London but have worked, and in some cases, lived in multiple jurisdictions. This provides valuable cultural insights into differences and sensitivities in managing and resolving conflict. Jurisdictions include Singapore, Hong Kong, China, India, Saudi Arabia, UAE, Qatar, USA, and Europe.
CURRENT AREAS OF PRACTICE THAT INFORM SECTOR EXPERTISE
IP & IAM, COMMERCIAL RIGHTS CREATION & MONETISATION
Creation, assembly, structuring, protecting, owning and enforcing rights and arrangements for monetisation of intangible assets (IA) through licences, partnerships, JVs, and sale, etc. Sponsorship is an example for context. Recognition of IP and proprietary rights in IA will depend upon jurisdiction and treaties. Ownership may, for example, be recognised by statute as is often the case for copyright, trademarks, patents, design rights, image rights, media rights, data rights, and performing rights. In some jurisdictions, particularly those with a common law origin, “goodwill” can be recognised as a proprietary right through use of IA. Rights can also be created through contract, such as granting exclusive access to a private venue, and granting rights that arise through such exclusive access such as content and image rights.
BRAND & REPUTATION MANAGEMENT
Impact of non-compliance with legal/regulatory for individuals and entities on their respective reputations and how to manage and mitigate potential damage has become important with social media amplifying views and opinions. Sector specific knowledge within IP and IAM in sport and entertainment as applicable to other industries. Sport has many unique relationships because of “fans” which might be categorised as equivalent to enthusiastic customers for consumer brands. Sport’s reputation is an IA, probably accounting for 80/90% of aggregate value and it is highly sensitive to brand and reputation management. As an example, ESG and environmental regulation alongside climate change and integrity issues such as match fixing are having an important impact for sport’s value. Managing conflict in this area provides valuable lessons for other sectors.
CORPORATE, INVESTOR, LICENCE, FINANCE & STAKEHOLDER ARRANGEMENTS
Structuring sustainable contractual relationships within and between individuals, commercial partners, investors, and other stakeholders protects value. Sector experience and knowledge of relevant business models including ownership, control, governance, and integrity will help optimise that value. Within such relationships forward planning to create accountability whilst reducing the risk of disputes arising or escalating through appropriate contractual language becomes important. A broad appreciation of where disputes within a sector are likely to arise is needed. For example, as with athletes, participants, investors, shareholders, partners, participant licensees, and joint ventures. A sector specific understanding of risk management, including insurance is important.
DISPUTE RESOLUTION & LITIGATION RISK MANAGEMENT STRATEGIES AS RISK PROFILE CHANGES
Disputes cost time, money, and resources. They are always best avoided or resolved promptly. Best practice is to use technology including AI and expert systems, that are now capable of cost-effective deployment to identify disputes early in their life cycle. Enterprises may need guidance to understand how technology is providing such opportunities. Many state court systems are under pressure to provide access to justice. Social media can amplify newsworthy disputes and enable views to be formed well before a case comes to a hearing. Working with enterprises to understand and implement technology in this area is a growing advisory role that can materially improve the bottom line of an enterprise. ADR offers much greater scope for confidentiality in conflict resolution than courts. There is often greater scope for those familiar with a business sector to understand and resolve issues immediately.
EXAMPLES OF CORE COMPETENCIES IN AVOIDANCE AND AREAS OF POSSIBLE LITIGATION RISK
►Identifying Ownership, IP, Copyright, Trademarks, Patents, Design Rights & Addressing Infringements ► Conflicts Arising from ESG, Including Safe Sport, Environmental Regulation, Sustainability & Impact of Climate Change ►Sponsorship, Franchising, Media Rights, Image Rights ►Good Governance to Help Avoid Conflict ► Reputational Risk & Brand Management ► Ticketing & Venue Operation & Access Control to Create & Sustain Exclusivity in Intangible Assets ► Disciplinary Proceedings in Connection with Senior Management as Part of Sport Governance ►Brand Exclusivity in Marketing Agreements ► Content Creation and Licensing Including Data such as eSport, Gaming & Betting ► Use of Technology to Aid Recognition & Management of Disputes, Proprietary Infringement & Cybercrime, Asset Tracing & Recovery ► Athlete, Participant, Shareholder, Investor & Partnership Disputes ► Force Majeure, Risk Monitoring & Management ►Intangible Asset Valuation ►Insurance Claims ► Event Disruption, Cancellation & Impact on Cross-Border Investment & Supply Chains, for example from Climate Change ►Ambush Marketing & Clean Venues