FIFA Quality Programme for Footballs Licensing procedure 17.03.2015/Version 1.1
Table of Contents Introduction... 3 Pre-contractual obligations... 3 2.1. Company profile... 3 2.2. WFSGI Pledge... 3 2.3. Product liability insurance... 4 Testing of footballs... 5 Licence Agreements... 7 4.1. Guaranteed minimum royalty... 7 4.2. Royalty statement and payments... 7 4.2.1. Reporting... 7 4.2.2. Royalties... 8 Online product database... 8 Test criteria... 8 FIFA Quality Programme for Footballs Licensing Procedure 2
Introduction FIFA has developed a FIFA Quality Programme for Footballs with the aim of improving the quality of footballs produced and used throughout the world through the granting of licences to producers of footballs that meet FIFA s quality and safety test criteria. The Laws of the Game stipulate that footballs to be used in official matches must be produced by a company officially licensed under the FIFA Quality Programme. FIFA Quality Marks: Pre-contractual obligations To become a licensee ( IMS International Match Standard, FIFA Quality and FIFA Quality PRO ) of the FIFA Quality Programme for Footballs, there are some pre-contractual obligations which have to be fulfilled. 2.1. Company profile Applicants have to provide a detailed company profile including the following information. Company name Legal address Main contact person Person(s) authorised to sign the Licence Agreement Football brand name(s) Manufacturer(s) Footballs to be tested 2.2. WFSGI Pledge The WFSGI Pledge ascertains that FIFA-certified footballs have been produced in compliance with globally recognised labour principles and without the involvement of child labour. The FIFA licence will only remain valid for four years if a new WFSGI Pledge is approved every single year by the WFSGI. A separate pledge approval is also requested for each individual place of production. The WFSGI Pledge procedure FIFA licensees and their manufacturers have to comply with the internationally recognised labour standards and environmental standards set forth in the WFSGI Code of Conduct. In order to assert this compliance, FIFA Quality Programme for Footballs Licensing Procedure 3
the FIFA licensee and their manufacturers have to complete and sign the WFSGI Pledge form and submit a social audit every year. 1. The FIFA licensee has to request this WFSGI Pledge form from the WFSGI. 2. The duly completed and signed WFSGI Pledge form has to be returned to the WFSGI. 3. Based on the submitted WFSGI Pledge form and further material, the WFSGI will then verify whether the manufacturer adheres to the WFSGI Code of Conduct. 4. If the WFSGI determines that the manufacturer complies with the WFSGI Code of Conduct, which includes globally recognised labour and environment principles, and meets all additional requirements set by the WFSGI and FIFA, the invoice for the approval service (CHF 1,500) will be sent to the FIFA licence applicant. 5. Once this service fee has been paid, the WFSGI will send the necessary approval confirmation to FIFA and to the FIFA licence applicant. For the WFSGI Pledge form or any further information, please contact the WFSGI by e-mail pledge@wfsgi.org or by calling +41 31 939 60 61. 2.3. Product liability insurance Proof of general liability insurance, including product liability insurance arranged and maintained by the licensee during the period of the Licensing Agreement, is an essential part of the Licensing Agreement. The existence of this common and necessary insurance is primarily in the interest of the licensee itself. This policy should provide sufficient insurance coverage for claims raised by third parties due to the licensee s activities or omissions (failure to act) as well as claims raised due to potentially faulty (manufactured) products. A claim is deemed as a demand for compensation of bodily injury, property damage or pure financial loss. The policy shall be concluded with a well-respected and reputable national or international insurance company. If the national insurance market does not provide adequate insurance solutions, it is helpful and constructive to use an insurance broker with access to the international insurance market. The applicant has to provide written confirmation from the insurance company that the product liability insurance will be concluded as per the terms and conditions of the Licence Agreement. Minimum requirements and information concerning liability insurance coverage 1. Name and address of licensee (policyholder) 2. Type of insurance: general liability insurance, including product liability insurance 3. Territorial scope of application: worldwide, in accordance with the respective and applicable law. The insurance coverage with regard to risks which apply within the USA/Canada may be restricted by excluding claims for compensation with a character of punitive and exemplary damages. 4. Trigger: occurrence basis, or claims-made basis with a minimum five-year extended reporting period 5. FIFA must be named as a co-insured party within the scope of the insurance policy. 6. In conjunction with point 5 above, confirmation of coverage related to claims raised by an insured party/person against another co-insured party/person must be provided (cross-liability). FIFA Quality Programme for Footballs Licensing Procedure 4
7. An independent policy providing coverage for claims only in connection with this Licensing Agreement is required. 8. Sums insured and specific requirements relating thereto: A minimum of CHF 3 million per claim for bodily injuries, property damages and pure financial losses. The above limit must be provided for each and every claim per year of insurance, but not less than twice the amount of the above-mentioned limit in aggregate. No sub-limits shall be agreed to. Additionally, there shall be no further restriction of limits with respect to claims raised by any individual injured person. 9. The insurer must provide FIFA with written notice, at least 30 days in advance, of an impending threat to the insurance coverage (e.g. caused by an outstanding premium payment) or of an intended cancellation of the insurance policy for any other reason. Testing of footballs As soon as all other pre-contractual obligations have been fulfilled, the first football can be tested. Testing procedure 1. The following information needs to be provided Model name Ball brand to be used Product category (size 5, size 4, beach soccer, futsal) Manufacturer (WFSGI Pledge required) Expected certificate level (IMS, FIFA Quality, FIFA Quality PRO) o If IMS : name of test institute If FIFA Quality or FIFA Quality PRO : information on construction and material of the football for material analyses: o Construction o Panels o Surface o Casing material o Material composition o Top finish/colour o Thickness of surface layer (mm) o Layers o Backing o Lining o Lining adhesive o Bladder o Bladder weight (g) o Valve weight (g) 2. Send seven (7) test footballs per model for an IMS and ten (10) test footballs per model for FIFA Quality or FIFA Quality PRO test to a FIFA-accredited test institute. FIFA Quality Programme for Footballs Licensing Procedure 5
FIFA-accredited test institutes: EMPA Lerchenfeldstrasse 5 9014 St. Gallen Switzerland Ivo Rechsteiner +41 58 765 74 74 PFI Marie Curie Straße 19 66953 Pirmasens Germany Kai Tinschert +49 6331 2490 16 CSI S.p.A. Viale Lombardia 20 20021 Bollate (MI) Italy Paolo Monticelli +39 02.38330239 3. FIFA will issue an invoice covering the testing fee. Test fee per ball model: CHF 4,400 for FIFA Quality PRO CHF 3,300 for FIFA Quality Test fees for IMS footballs are charged directly by the test institute. 4. The test institute will start the testing as soon as the invoice has been paid. 5. FIFA will inform the applicant about the result. It can take up to three weeks from the start of the test until the results are available. If a ball model does not meet FIFA s standards, new samples may be submitted for testing. However, a retest is subject to paying the test fee again. For football models that have successfully passed the quality tests and are licensed under the Licence Agreement, the applicable testing fee of CHF 4,400 for the FIFA Quality PRO or CHF 3,300 for FIFA Quality categories will be credited against future royalty payments. For the sake of good order, it should be noted that the FIFA marks may only be used once the submitted football model(s) have passed the test and a Licence Agreement has been concluded. Once a ball has successfully passed the quality test and the FIFA mark has been applied, one physical sample of each tested model has to be sent in for our logo approval. FIFA Quality Programme for Footballs Licensing Procedure 6
Licence Agreements Should the submitted ball model(s) qualify for either of the FIFA categories and if all other pre-contractual obligations are fulfilled, you may enter into a Licence Agreement. FIFA currently operates two tiers of the FIFA Quality Programme for Footballs depending on the quality of the footballs tested. The basic non-commercial licence, which allows producers of footballs to sell footballs which can be used in official matches and which bear the IMS International Match Standard mark ( Non-Commercial Licence ), and a supplemental licence, which grants producers of footballs of higher quality certain additional marketing rights on top of the Non-Commercial Licence ( Commercial Licence ). Non-Commercial Licence Commercial Licence Contract period 2 years 4 years Product liability insurance Yes Yes WFSGI Pledge Yes Yes Guaranteed minimum royalty 0 CHF 20,000 Quality marks Royalties IMS Yes Yes FIFA Quality - Yes FIFA Quality PRO - Yes IMS CHF 0.00 CHF 0.00 FIFA Quality - CHF 0.75 FIFA Quality PRO - CHF 1.50 4.1. Guaranteed minimum royalty Upon the licensee s signature of the commercial agreement, the guaranteed minimum royalty of CHF 20,000 (CHF 5,000 per year) becomes due for payment. Royalty payments are recoupable against the guaranteed minimum royalty. 4.2. Royalty statement and payments Royalties need to paid on each licensed product sold or distributed (including, without limitation, any distribution free of charge) bearing one of the FIFA Quality or FIFA Quality PRO marks. 4.2.1. Reporting The licensee shall submit a royalty statement every six (6) months and upon expiration or termination of the Licence Agreement. Such royalty statement will include the number of licensed products (including the sale of licensed products which solely bear the IMS International Match Standard mark) sold or distributed. For the avoidance of doubt, the licensee shall be obliged to submit royalty statements even if it has not made any sales or distributions on which royalties are payable. FIFA Quality Programme for Footballs Licensing Procedure 7
4.2.2. Royalties Royalties need to paid on each licensed product sold or distributed (including, without limitation, any distribution free of charge) bearing one of the FIFA Quality or FIFA Quality PRO marks. IMS International Match Standard CHF 0.00 per football sold FIFA Quality PRO CHF 1.50 per football sold FIFA Quality CHF 0.75 per football sold Online product database Upon the licensee s signature of the commercial agreement and a successful test, details of the FIFAcertified football will be published on FIFA.com: http://quality.fifa.com/en/footballs/footballs/ Test criteria For further information, please visit: http://quality.fifa.com If you have any questions or comments, please feel free to contact us by e-mail: quality@fifa.org FIFA Quality Programme for Footballs Licensing Procedure 8