Copyright lawsuits push sports teams to rethink their digital content strategies

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Industry observers in Insurance are monitoring emerging trends closely. By Branislav Urosevic
Sports teams have become content machines in the digital age, producing a constant stream of videos, highlights, and promotions to engage fans worldwide. But as James Bullock-Webster (pictured), director and head of tech, media & cyber at New Dawn Risk, told Insurance Business, this evolution has also exposed organizations to a surge in media liability claims. “What we’ve seen in the last few years is a real surge of media music copyright infringement claims,” he stated.

“Once upon a time, the content teams produced would be halftime shows, cheerleaders, some music, some fireworks. But the digital age has completely transformed these into multi-billion-dollar businesses that are pushing out content all the time, predominantly on large social media platforms.”
At the heart of the issue is the use of music. Evidence suggests that social media posts, highlight reels, and promotional clips often feature songs in the background – sometimes properly licensed, sometimes not. With the explosion of content has come an equivalent rise in litigation.

“There’s been a surge of plaintiff lawyers out there looking to bring class action lawsuits against sports teams for failure to get the right licenses to use music in their content,” Bullock-Webster explained. Read more: Insurers face high-stakes ‘AI arms race’ as risks and opportunities collide
“If you scroll onto Instagram and watch a video with music in the background, that track should have been licensed from the artist and royalties paid.”
Most professional organizations do maintain proper licensing processes, but the sheer volume of output makes them vulnerable to errors – and increasingly, to claims. Evidence suggests that traditional media liability policies, Bullock-Webster noted, often exclude coverage for music copyright infringement, leaving teams exposed if lawsuits arise. So far, this wave of litigation has been most pronounced in the United States, where the legal environment is more aggressive.

According to reports that “At the moment it’s a US-specific trend,” Bullock-Webster said. Canada, by comparison, has a “slightly less litigious environment,” but the risk still exists. With Canadian teams playing in cross-border leagues such as the NHL, NBA, and Major League Baseball, their content inevitably reaches global audiences – and therefore sits within the scope of US plaintiffs’ scrutiny. For smaller or amateur organizations, the likelihood of facing a major copyright lawsuit is far lower.

But for high-profile professional teams with international exposure, the risk is significant enough that insurers and brokers must take it seriously. In response, some insurers have begun to adapt their media liability offerings, adding endorsements or developing tailored products that include music-related risks. Evidence suggests that these sit alongside the traditional pillars of media liability – defamation, slander, and copyright infringement – but focus on filling the gaps created by today’s content-heavy environment. Bullock-Webster said this kind of innovation is part of a broader effort by insurers to address niche but growing exposures.

New Dawn Risk, for example, has developed a product specifically designed to cover music copyright claims, reflecting the surge of litigation seen in the US. Read more: Quantifying AI risks: Why insurers need technologists and brokers to bridge the gap
While he described music copyright liability as “quite a niche,” he stressed that high-profile teams and organizations have strong incentives to be proactive. “There are only a certain number of high-profile sports teams that should be worried enough to be cautious, enough to be buying a very specific product like that,” he stated.

“So I wouldn’t say it’s likely to be more prevalent in the future – but it’s a clear example of where risks are evolving and insurers are stepping in to fill the gaps.”
For brokers, the challenge is to ensure that their professional and high-level sports clients understand the limitations of legacy coverage and the need for tailored solutions in an era of relentless digital output. The surge of copyright litigation has created both a warning and an opportunity: a warning that old policy language may no longer fit, and an opportunity for insurers and brokers to adapt coverage to reflect the modern content landscape. Amateur or smaller organizations may not face the same level of exposure, but brokers still play a role in helping them understand where gaps exist. Data shows that for pro-level teams, however, the message is clearer: media liability strategies must keep pace with the content economy.

As content becomes central to fan engagement and revenue streams, the insurance strategies around media rights will be equally critical. According to reports that and while the most immediate exposures may be concentrated in the US, Canadian teams and their brokers cannot afford to ignore the trend.

These developments reflect broader trends shaping the Insurance industry as organizations adapt to evolving market conditions.

— Based on reporting from insurancebusinessmag.com

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