Alcohol promotions clash with IU logo

Flourescent and neon signs featuring Miller Lite’s logo and IU’s logo continue to illuminate bars in Bloomington’s downtown, and there’s not much the University can do about it.

Because restaurants and individuals own the signs, IU can’t take them down. Besides that, the signs did not break IU’s logo rules when the signs were created, said Deputy Athletics Director Tim Fitzpatrick.

The IU trademark policy states that IU will not license the use of its name or logo to promote, among other things, alcohol.

That policy applied only to the official University emblem – not the athletics logo. Until recently the two were different.

In 2005, Learfield Sports/IU Sports Properties – the athletics department’s media rights holder – signed a promotional contract with Miller Brewing Company, which at the time was not a violation of IU policy, Fitzpatrick said, because the logos were different.

But the University underwent an “image integration” process a few years ago, during which the institution adopted the athletics department’s mark as its official logo, Fitzpatrick said, complicating Learfield’s contract with Miller.

The buckets, glasses, signs and other items feature IU’s athletic emblem because Learfield signed a contract with Miller to prevent other alcohol companies from using advertisements with the words “Hoosiers” and “Indiana,” which exist in public domain, Fitzpatrick said.

IU athletics officials said they thought they could regulate the use of the athletics mark allowing Learfield licensing it to only one company, Fitzpatrick said. That way the department had the ability to approve and reject advertisements and make money off of it.

The athletics department made an agreement through the IU Research and Technology Corporation, which handled intellectual property rights and trademark and business development issues. It also had to give its permission for any advertising.

The contract was inherited by IU Sports Properties when they became the media rights holder for the athletics department.

There’s a fine line between advertising and simply using the mark, Fitzpatrick said. Because the neon signs don’t display “messaging” – for example saying “$2.99 a six pack” – or their slogan – “Taste great, less filling” – the signs aren’t considered advertising.

Instead, the signs are simply “licensed promotional activity,” Fitzpatrick said.

“We don’t permit advertising because advertising encourages sale,” he said.

Promotion is broadly defined, which isn’t a good idea, said Bruce Jaffee, chairman and professor of business economics and a faculty athletic representative.

In June 2008, the contract with Miller expired and was not renewed – a response to a bigger problem on a national level. About three months ago, signs featuring IU’s logo, the Miller Lite logo and IU’s football schedule, in violation of IU’s rules, were quickly taken down.

“While three years ago it was a good idea and well-intentioned idea, it’s not something we will do moving forward,” Fitzpatrick said.

The University’s position as a whole is still evolving, Fitzpatrick said, but the Miller Lite promotions were never an “endorsement.”