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Event Sponsorship Contracts

Can I get a refund if the event is postponed?

Normally, contracts allow sponsors to retain rights for the rescheduled date. Refunds are typically negotiated only if the new date is unsuitable for the sponsor.

What is "ambush marketing"?

It's when a non-sponsor brand tries to associate itself with the event without paying. Contracts oblige organizers to prevent this (e.g., by controlling unauthorized sales).

Do I own the event photos?

The organizer usually owns the copyright, but sponsors get a license to use photos featuring their branding for marketing purposes.

Is sponsorship VAT exempt?

No, in Georgia, sponsorship is a service (advertising) and is subject to 18% VAT if the organizer is a VAT payer.

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Event Sponsorship Contracts are essential for the successful execution of any large-scale event — whether it be a concert, festival, sports tournament, or business conference. This is an agreement between the organizer and a company, where one party receives funding and the other receives an advertising platform. As the event industry grows in Georgia, relationships are becoming more formal and regulated. Sponsors demand guarantees regarding audience numbers, brand visibility, and exclusivity. Organizers need financial security and protection from force majeure. A qualified lawyer ensures that the contract is balanced and clearly defines each party's responsibilities in case of event cancellation or flawed execution.

What Does the Event Sponsorship Contracts Service Cover?

Our service ensures the legal soundness of event sponsorship:

  • Creating Sponsorship Packages: Legally defining the rights and obligations of Gold, Silver, Platinum, and Title sponsors.
  • Branding Rights: Placing logos on stage, banners, tickets, and social media. Agreeing on exact locations and sizes.
  • Hospitality: Terms for organizing VIP tickets, boxes, and private parties for the sponsor's guests.
  • Data Protection: Rules for sharing event participants' personal data (e.g., registration database) with the sponsor for marketing purposes.
  • Cancellation and Postponement Terms: Mechanisms regulating refunds or rollovers in case of event cancellation (e.g., rain, epidemic).

Real-World Situations When You Need This Service

The following disputes are common when organizing events:

  • Low Attendance: The sponsor is unhappy because fewer people attended the concert than promised. The lawyer defends the organizer if the contract did not guarantee numbers.
  • Competitor Brand: Competitor products are being sold on the event premises. Enforcing the exclusivity clause and eliminating the violation is required.
  • Artist No-Show: The main artist could not arrive. The sponsor demands a refund. The lawyer regulates force majeure and substitution rights.
  • Tax Obligations: Correctly formalizing barter sponsorship (e.g., providing beverages) to avoid tax risks.

Georgian Legal Framework

Event sponsorship is regulated by the "Law of Georgia on Advertising" and the "Civil Code". When holding events in public spaces, compliance with the "Law on Assemblies and Manifestations" is mandatory. Processing personal data is regulated by the "Law on Personal Data Protection". Our lawyers ensure compliance with all these regulations.

Process: How a Specialist Works

The lawyer's role includes:

  1. Structuring: Turning the sponsorship proposal into a legal document.
  2. Negotiation: Clarifying terms with the sponsor (e.g., payment schedule).
  3. Enforcement: Monitoring on the day of the event to ensure sponsor rights are protected.

Why Legal.ge?

Legal.ge offers lawyers with experience in providing legal support for festivals and large events. The event business is risky, but with our help, you can manage these risks and attract reliable sponsors.

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