Fanatics, the international e-commerce and merchandising giant, has hit back at claims that a recent decision by the Federal Court of Australia to uphold its ruling and limit the sale of its Fanatics-branded products over copyright infringement will affect its growing footprint in the market, claiming the decision’s impact will be minimal.
Last week, Fanatics lost its appeal against the Federal Court’s initial ruling in June 2024, which sided with Australian sports travel company FanFirm and its claim, filed in 2022, that Fanatics’ use of its branding in Australia constituted a trademark infringement.
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The Federal Court found FanFirm was the first and undisputed user of the Fanatics brand in Australia, having trademarked the word across several categories, including clothing and sportswear, in 2008, and had established a significant reputation in the country before the US’ Fanatics, Inc. entered the market.
That decision, and subsequent appeal judgment, means no jerseys or apparel with the word 'Fanatics' on it can be offered for sale or sold in Australia. However, use of the Fanatics flag icon is still allowed.
Responding to the company’s “historic win” over its US competitor in a press release last week, FanFirm described the lawsuit as a David vs Goliath case, that would render “many thousands of Fanatics-branded items that are currently viewable on the Fanatics LLC website” unsellable in Australia under the judgment.
Various media outlets have also jumped on the narrative following the ruling, suggesting that Fanatics would no longer be able to conduct business in the country.
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By GlobalDataFanatics sells licensed sports apparel bearing Fanatics branding for major American leagues, including American football’s NFL and most of its teams, basketball’s NBA, baseball’s MLB, ice hockey’s NHL, soccer’s MLS, and more across international markets, including Australia.
However, Sportcal now understands that despite the inference that the decision could kill Fanatics’ entire business in Australia, the decision will only affect less than 1% of its sales in Australia.
Most products Fanatics sells in the Australian market are branded merchandise manufactured by third parties, including headwear brand New Era, while it also sells other first-party brands such as Nike, Mitchell and Ness, and Majestic – none of which are impacted by the ruling.
In a statement to Sportcal, a Fanatics spokesperson said: “This ruling will have a very minor effect on our business and our ability to serve our partners in Australia.
“Australia is one of our fastest-growing markets, and we’re happy that the court’s ruling in this matter allows us to continue operating all partner websites as ‘A Fanatics Experience’ and hasn’t precluded us from signing many new incredible partnership deals.
“This ruling also allows Fanatics to continue to offer merchandise from third-party licensed brands as well as all products we manufacture under a variety of other brands.
“This ruling has no impact on our ability to grow our business, which we firmly intend to do, and we remain committed to servicing our partners and fans in Australia.”
The company has accelerated its push into the country with its sports fan offering in recent years, having signed a 10-year distribution deal with local retailer Rebel Sport in 2020.
Australia is now Fanatics’ second-fastest growing market after North America, having secured several major partnerships in the region, including with Australian football’s AFL and its Richmond and Essendon Football Clubs, rugby governing bodies Rugby Australia and New Zealand Rugby, rugby league club Melbourne Storm, and the Australian Olympic Committee.
The appeal loss comes as Fanatics prepares to provide access to merchandise during UFC’s mixed martial arts event in Perth in September, as well as for the NBA x NBL Melbourne Series and WWE Takeover Perth in October.
The company also has a partnership in place with rugby union governing bodies World Rugby and Rugby Australia covering the 2027 Rugby World Cup, which is being staged in Australia.
