2019 FIBA BASKETBALL WORLDCUP

Section 10 Legal and Regulatory

10.1 - Confirm if no legal restrictions will impact ability to
host World Cup in accordance with the Host Nation Agreement
(HNA) requirements.
COMMENTS/ANSWERS:
As the Philippines start to prepare events for the upcoming
2019 FIBA Basketball World Cup - assuming that it won its bid to
host the tournament there are certain legal restrictions that may
affect the Philippines ability to host the 2019 FIBA Basketball
World Cup.
One of the legal restrictions that may affect the Philippines
ability to host the 2019 FIBA Basketball Cup is the host countrys
law on taxation. Under Section 23 (f) of the Philippines National
Internal Revenue Code of 1997, to wit: Except when otherwise
provided in this Code, a foreign corporation, whether engaged or not
in trade or business in the Philippines, is taxable only on income
derived from sources within the Philippines. It should be noted that
under Section 22 (b) of the National Internal Revenue Code of 1997,
the term "corporation" includes partnerships, no matter how
created or organized, joint-stock companies, joint accounts (cuentas
en participation), associations, or insurance companies, but
excluding general professional partnerships and a joint venture or
consortium formed for the purpose of undertaking construction
projects or engaging in petroleum, coal, geothermal and other
energy operations pursuant to an operating or consortium
agreement under a service contract with the Government. Certainly,
one of the three taxable corporations under the Tax Code is a nonresident foreign corporation. Here, it must be stressed that FIBA
falls under the said category of non-resident foreign corporation
and under the NIRC, a foreign corporation, whether resident or

non-resident, is taxed only on income derived from sources within

the Philippines.

Moreover, section 1, paragraph 4 of Schedule 1 of the Host

Nation Agreement provides that: the Host shall be entitled to sell
tickets to the Event and to receive 50% of all Net Revenues received
from the sale of such tickets (the remaining 50% being allocated to the
JMC as set out in Section 2 below). This means that ticketing
revenues allotted to the Host country and JMC respectively shall be
both subject to Philippine income tax in view of the fact that these
ticketing revenues are derived from sources within the Philippines
based on the source principle mentioned in the Section 23 of the
NIRC. Hence, being subject to Philippine income tax, this may run
conflict with the Schedule 2, Section 12 of the Host Nation
Agreement which provides, to wit: The Host shall ensure that FIBA
and / or any FIBA representative (other than any FIBA representative
domiciled in the Host Nation) will not pay any tax in the Host Nation
as a result of the Event. For the avoidance of doubt, FIBAs profit
share from the JMC will be paid prior to the deduction of any tax or
other levies in accordance with paragraph 5.11 of Section 2 of
Schedule 1.
10.2 Advise any restrictions on use of internet and
internationally

established

social

media

platforms

in

territory.
The Cybercrime Prevention Act of 2012, officially recorded as
Republic Act No. 10175, is a law in the Philippines approved on
September 12, 2012. It aims to address legal issues concerning
online interactions and the Internet in the Philippines. Among the
cybercrime offenses included in the bill are cybersquatting,

cybersex, child pornography, identity theft, illegal access to data

and libel.

10.3 - Describe any entry visa restrictions for FIBA staff,

competitors/teams & VIPs traveling temporarily to nation.
10.3.1 Explain any formalities or restrictions that may
prohibit groups from entering nation for World Cup and how
will it be addressed
10.3.2 - In particular, please confirm if no restriction on basis
of nationality
10.4 Confirm that no taxes or duties will be levied re
temporary import/export of materials and equipments by
FIBA, media and/or teams for the duration of World Cup
10.4.1 Summarize any necessary exemptions applied for and
any assurances they will be granted
10.5 Confirm that JMC incomes and profits will be exempt of
any fees and taxes

Section 11 Marketing, Sponsoring and Brand Protection

11.6 Provide any details of statutory protections that currently
exist and any other protection proposed to combat/ambush
marketing and sale of counterfeit merchandise

11.7 Provide details of any national/local laws restricting or

prohibiting certain types of sponsorship (e.g., tobacco, alcohol,
gambling, etc.)

Section 19 Additional guarantees which may be required

19.1 Additional guarantees may be required in the event that
candidate or public sector guarantor is not an appropriate entity to
guarantee bid elements (e.g., if the venue is privately owned).
Supply detail of guarantor providing following guarantees
19.1.1 Venue availability and suitability
19.1.2 Hotel availability and suitability

*citizenship
http://www.philstar.com/sports/802426/fiba-cracks-down-ineligibles

*IP
http://www.lawinsport.com/articles/intellectual-property-law/item/brand-protectiontrademarks-and-the-event-that-shall-not-be-named-event-specific-legislation-andthe-olympic-games

*transfer of players
http://ec.europa.eu/sport/library/documents/cons-study-transfers-final-rpt.pdf

http://www.wipo.int/ip-sport/en/

Schedule 1: Section 1 (4) HOSTING RIGHTS

Event Marks
The JMC shall develop a logo comprising the FIBA logo
alongside with a symbol specific to the Event and the Host
Nation, or such other logo as may be developed upon
agreement by the JMC to designate the Event (the Event
Logo). The JMC will develop a creative Event word mark
solution whereby only the designation of the Event appears
(name), without any symbol, except that this word mark will
include the FIBA logo or word as determined by the JMC. A set
of secondary elements and patterns will be also develop to
work alongside with the Event Logo and word mark and help
the development of the Event Branding. All such above Event
Brand Identity elements will be Event Marks for the purposes
of this Agreement.
The Host shall have the non-exclusive worldwide right
during the Term to use (and to licence to the Host Cities and
the Host Nation to use), the Event Marks in the Hosts (and
Host Cities and Host Nations) advertising, marketing and
promotions in relation to the Event subject to the terms and
restrictions of this Agreement and provided in every case that
any such use shall be subject to the prior written approval of
FIBA and strictly in accordance with the Branding Guidelines
and any other instructions or terms of use as may be
communicated by FIBA to the Host from time to time.
- See IP Code
Branding Opportunities
The Event Logo and/or other Event Marks will have the
following branding and promotional references as follows:
o During qualification games for the Event;
o During promotional activities leading up to the Event;

o Dressing and signage at the Venues and in the Host

Cities;
o Event Staff Uniforms;
o In the Official Programme;
o On the official Event Website; and
o In additional promotional materials produced by the
JMC.
See IP Code

Official Website and Social Media

FIBA shall establish and operate an official Event Website
relating to the Event, and maintain the same throughout the
Term (see paragraph 8 of Section 3 below). In addition, FIBA
shall be responsible for establishing and operating social
media activities relating to the Event during the Term (which it
may at its discretion delegate to the JMC). The Host will have
opportunities to submit content featuring the Host, Host
Nation and/or Host Cities for inclusion on such website/
platforms (as further set out in Paragraph 2 of Section 7
(Media and Communications) of Schedule 2). FIBA shall
conduct regular meetings with the Hosts web staff, ensuring
that relevant content, official information, official data and
images are displayed before and during the Event.
FIBA shall arrange regular workshops between FIBA and
the Host, in order to deliver a successful website and to inform
the Host of the social media strategy. To this goal, FIBA will
organise as many workshops as FIBA deems necessary and
the Host shall ensure attendance of the required personnel. In
general, these workshops can be divided into two timeframes,
namely:
- Pre-launch workshops (strategy, workflow, training);
and
- Post-launch workshops (reviews, brainstorming,
actions).

The exact date and location of each workshop will be

agreed between FIBA and the Host in due time.
- Check applicable laws