Section 19: Advertising regulations

49.     This section imposes a duty on the Secretary of State to make regulations about advertising in the vicinity of Olympic venues. These regulations are required in order to fulfil obligations imposed by the International Olympic Committee and made within the Host City Contract. In particular, the Contract requires that no advertising is placed around Olympic venues so as to be within the view of television cameras covering, or spectators watching, Olympic events.

50.     The Secretary of State has broad discretion in the detail to be included in the regulations. The regulations will specify the nature and extent of these restrictions including the place, time period and type of advertisements to which the restrictions will apply. However, subsection (6) provides that they will only apply for a period which the Secretary of State considers necessary to comply with the Host City Contract.

51.     Much of the detail of the restrictions has been left to secondary legislation in order to make a proper assessment of what is required closer to 2012: the IOC may change the requirements which are placed on host cities and venues may also change. The regulations may apply restrictions for different periods and in a different way for different venues. This will enable the characteristics of different venues and different events to be taken into account: for example, the intention is to restrict advertising around football venues for a limited period as some of those venues will only be used for a very short space of time. The regulations will also include exceptions. It is intended that these will follow exceptions provided in the regulations relating to the control of advertising under the Town and Country Planning Act (1990) as closely as possible.

52.     Subsection (7) allows for the authorisation of controlled advertising within the vicinity of Olympic venues. Regulations will allow the Secretary of State to authorise a "responsible body" such as the ODA or London Organising Committee of the Olympic Games ("LOCOG"), to undertake advertising (subject to any conditions contained in the regulations), and that responsible body will, in turn, be able to grant subsequent authorisations to other advertisers.

53.     Subsection (8) provides that the regulations may impose obligations on those who advertise or those who benefit from unauthorised advertising. Regulations may also impose duties on the owners and occupiers of land to ensure that unauthorised advertising - as specified in regulations - does not occur on their land. It allows for these regulations to supersede any previous permissions for the use of that land, for example permissions granted by local planning authorities under the Town and Country Planning Act (1990).

Section 20: Regulations: supplemental

54.     Subsection (1) sets out in more detail what restrictions and flexibilities will apply to the making of regulations under section 19. For example, the regulations may disapply existing legislation about the control of advertising. In order to ensure consistency with the advertising restrictions in the Town and Country Planning Act 1990, the regulations may apply (with any necessary modifications) to Crown bodies. Subsection (3) requires the Secretary of State to undertake consultation before making any regulations under section 19, including by consulting people who represent interests within the advertising industry, the ODA, LOCOG and others likely to be affected by the regulations.

55.     In accordance with subsection (2) the regulations will be subject to the affirmative resolution procedure in Parliament. Subsection (4) prevents the regulations being subject to the process that is applied to hybrid instruments. Very broadly, a hybrid provision is one that has characteristics of both a public and a private provision.

Section 21: Offence

56.     This section creates a criminal offence for contravening the regulations made under section 19, punishable by a fine. In the Magistrates' Courts the maximum fine will be £20,000, which is higher than the maximum fine which Magistrates can normally impose. The section provides for higher fines because the offence is considered to be highly lucrative during Games time and is more likely to be committed by corporate bodies. This section also allows for the possibility that the offender may be required to pay the expenses of the ODA or Police Authority who have undertaken enforcement action as described in section 22.

Section 22: Enforcement: power of entry

57.     This section gives a constable, or an enforcement officer designated by the ODA, the power to enter land or premises in order to prevent or stop unauthorised advertising as defined in regulations made under section 19. Subsection (1)(a) is drafted in sufficiently broad terms to enable officers to enter land wherever a contravention of the regulations is occurring. This will allow, for example, entry onto land outside of the area where the advertising restrictions apply, if that land is being used to project images into an area where the advertising restrictions do apply. This section provides for immediate enforcement and entry powers, although the intention is that the entry will be gained at a reasonable time (subsection (2)) and after having taken reasonable steps to establish who owns or occupies the land or premises, and to give them the opportunity to deal with the contravention before entry (subsection (3)). Entry into a dwelling would only be permitted under warrant (subsection (4)). Officers will be able to seize items used to breach the regulations in order to stop contraventions or if necessary for evidential purposes. Subsection (6) allows for the application of the Police Property Act (1897) which governs proceedings for the return of seized property. The section also allows the Secretary of State to make regulations for a compensation scheme for any damage caused by any enforcement activity, although a person responsible for a contravention of the regulations will not be entitled to compensation. The definition of 'infringing article' in subsection (10)(b) covers advertisements plus other things such as graffiti which may constitute a contravention of the regulations.

Section 23: Role of Olympic Delivery Authority

58.     This section places a duty on the ODA in relation to the regulations made or expected to be made under section 19. Specifically, this duty requires the ODA to inform those people likely to be affected by the regulations about the effect of the regulations, and allows the ODA to provide assistance to persons so that they can comply with the regulations.

59.     Subsection (4) gives the ODA a specific power of prosecution in England and Wales in relation to offences under section 21.

60.     Subsection (6) requires the ODA to publish a strategy for how they intend to publicise the advertising restrictions and how they will exercise the enforcement powers provided for in section 22. This strategy would, for example, cover matters such as the relevant grade of officer in the ODA that can approve entry onto premises without a warrant.

Section 24: Local planning authorities

61.     This section allows the Secretary of State to make an order that requires certain local planning authorities to notify those people to whom they grant consents (in relation to advertisements) of the nature of regulations made and obligations imposed under section 19. Such orders are to be subject to the negative resolution procedure.

TRADING

Section 25: Street trading, & c.

62.     This section imposes a duty on the Secretary of State to make regulations to control trading in the vicinity of Games venues. These regulations are required in order to fulfil obligations imposed by the International Olympic Committee and made within the Host City Contract and in order to address issues of amenity and public safety (including avoiding congestion). The regulations will specify the nature and extent of restrictions including the place, time period and type of activity to which restrictions will apply. Regulations may apply during different periods in respect of different places. As is the case in relation to the advertising regulations under sections 19 to 24, much of the detail of the restrictions has been left to secondary legislation in order to make a proper assessment of what is required closer to 2012; the IOC may change the requirements which are placed on host cities and venues may also change.

63.     Subsection (4) provides that the restrictions in the regulations may apply to trading on a highway, in a public place, and to trading on private land but not to trading within buildings (except car parks).

64.     The regulations will allow the ODA to authorise trading within the vicinity of Olympic venues. The ODA will be able to delegate the function of granting authorisations. This ability to delegate is required as the ODA may rely on the expertise of local authorities that already license street trading in their areas. The regulations will also include provision about the circumstances in which such authorisations may or may not be granted. For example, the regulations may provide that the ODA is restricted to granting authorisations in relation to areas or types of trading already permitted by the relevant local authority. An authorisation may itself be subject to terms and conditions about the times of trading or steps to be taken to reduce congestion, litter or noise. Such terms and conditions may differ from, or be more onerous than, those of existing trading licences for the same area.

Section 26: Section 25: supplemental

65.     Subsection (1) sets out in more detail what restrictions and flexibilities will apply to regulations made under section 25. In particular, the regulations may disapply existing legislation in relation to street trading (including legislation about markets) and exceptions to the application of the regulations may be provided. For example, exceptions may be provided to permit certain news vendors and milk floats to trade in the vicinity of venues. Exceptions may also allow charitable sales. Subsection (2) applies the affirmative resolution procedure to these regulations. Subsection (3) requires the Secretary of State to, before making regulations, consult those authorities responsible for licensing relevant trading, the ODA, LOCOG and persons representing interests likely to be affected by the regulations. Subsection (4) gives these regulations precedence over any other trading licence granted before or after the regulations are made, including rights granted under enactments and Charters. Subsection (5) prevents the regulations from being subject to the process that is applied to hybrid instruments. Very broadly, a hybrid provision is one that has characteristics of both a public and a private provision.

Section 27: Offence

66.     Contravention of a regulation made under section 25 will be an offence, punishable by a fine. In the Magistrates' Courts the maximum fine will be £20,000, which is higher than the maximum fine that Magistrates can normally apply. The level of fine is applied to this offence for the same reasons provided for the advertising regulations at paragraph 56 above.

Section 28: Enforcement: power of entry

67.     This section gives a constable, or enforcement officer designated by the ODA, the power to enter premises on which they reasonably believe a contravention of the regulations is occurring. Officers may remove and retain any offending articles (either something being sold or something containing items for sale) for as long as its removal is justified by a need to:

• End a contravention of regulations made under section 25,

• Prevent a future contravention of the regulations,

• Enable an article to be used in evidence in proceedings for an offence under section 27, or

• Enable the article to be forfeited where the article has been used for the purpose of committing an offence.

68.     Subsection (6) provides for the Secretary of State to make regulations for a compensation scheme for damage caused by enforcement activities under section 28, although a person who is responsible for a contravention will not be eligible for compensation.

Section 29: Role of Olympic Delivery Authority

69.     This section places a duty on the ODA in relation to regulations made under section 25. The ODA is required to inform those people likely to be affected by regulations about the effect of the regulations. It may also provide people with any assistance they need to comply with the regulations and must work with people affected by the regulations to identify alternative ways or places to trade. Subsection (4) gives the ODA a specific power of prosecution in England and Wales in relation to offences under section 25. Subsection (6) requires the ODA to publish a strategy for how they intend to publicise the nature of regulations, to grant authorisations and to exercise enforcement powers. That strategy is to be approved by the Secretary of State before publication.

Section 30: Other authorities

70.     The Secretary of State may make an order requiring those persons who grant authorisations to trade to notify recipients that their rights will be superseded by any relevant regulations made under section 25. Such orders are to be subject to the negative resolution procedure.

Section 31: Sale of tickets

71.     This section is based on section 166 of the Criminal Justice and Public Order Act 1994 which deals with ticket touting primarily in relation to tickets for football matches. It creates a criminal offence of touting tickets for the 2012 Olympic Games.

72.     It will be an offence to sell a ticket (or anything that purports to be a ticket) for an event held as part of the London Olympics or Paralympics in a public place or in the course of a business without the written authorisation of LOCOG. If convicted of such an offence, a person would be liable to a fine up to level 5 on the standard scale (currently £5,000).

73.     The definition of "selling a ticket" includes offering to sell a ticket, exposing a ticket for sale, advertising that a ticket is available for purchase and giving (or offering to give) a ticket to someone who is paying for other goods and services. The definition is drafted to include a situation where a ticket is offered as part of a package of other goods because this sort of activity has been used to circumvent ticketing conditions in the past.

74.     In Subsection (2) the reference to an event held as part of the London Olympics includes non-sporting events and pre-Olympic test events.

75.     Under Subsection (2)(c), a person will be treated as acting in the course of a business if they are doing something as a result of which they will make a profit or aim to make a profit.

76.     A person ('the advertiser') will commit an offence if they advertise that a ticket is available for purchase and if the person making the ticket so available is acting in the course of a business. However, if the only reason the ticket is made available in the course of a business is by reason of subsection 2(c) (that is, that the person makes, or aims to make a profit) and the advertiser did not know or could not reasonably be expected to know that the person offering the ticket for sale was doing so for a profit or with an aim to make a profit then the advertiser will not commit an offence.

77.     Subsections (4) and (5) provide a defence for internet and other electronic communication service providers of being accessories to a ticket touting offence where they play an unwitting or unknowing role. However, once they become aware that their services are being used for touting tickets contrary to subsection (1), the service provider must withdraw those services in the shortest reasonable time.

78.     LOCOG is required to establish a system for granting written authorisations to official ticket sellers. It will be allowed to charge for such authorisations and will be entitled to exercise unfettered discretion in deciding whether or not to authorise vendors.

79.     Subsections (8) to (10) make necessary amendments so that this provision has the same effect in Scotland as it does in England and Wales.

MISCELLANEOUS

Section 32: Olympic Symbol etc. (Protection) Act 1995 and Schedule 3: Olympic Symbol Protection

80.     This section introduces Schedule 3. Schedule 3 amends the Olympic Symbol etc. (Protection) Act 1995 ("OSPA") which creates the Olympic association right, protecting the Olympic symbol, motto and other words relating to the Olympics. Schedule 3 allows for joint proprietorship of the Olympic association right, affords increased protection for the Olympic words, symbols and motto, clarifies exceptions to the Act, and creates a Paralympic association right.

81.     Paragraph 2 provides additional flexibility in relation to proprietorship of the Olympic association right allowing more than one person or body to exercise rights in relation to the Olympic symbol, motto and associated words. Appointments may be made for different purposes, which will allow Paralympic organisations to be joint proprietors of Paralympic words and Olympic organisations to hold rights to Olympic words. Joint proprietorship is necessary because of IOC requirements: the IOC requires rights to Olympic intellectual property to pass from the national organising committee - the British Olympic Association - to the LOCOG in the lead up to and during the Games. However, the British Olympic Association will need to retain residual rights for certain purposes.

82.     Paragraph 3 extends the infringement of the Olympic association right to words that are similar to the protected words in OSPA and which create in the public's mind an association with the Olympic Games or the Olympic movement. OSPA already provides protection against the use of mottos and symbols similar to the Olympic symbol and motto. This new measure provides protection to words similar to those protected under the Olympic association right.

83.     Paragraph 4 clarifies the exemptions and limitations to the Olympic association right. This includes providing clarity over the definition of "association", particularly linking it to the idea that someone has created a commercial or contractual, or corporate or financial (eg sponsorship), link between a person, product or service and the Games except where this is in accordance with honest commercial practices. Paragraph 4 also provides the Secretary of State with a power to further clarify the concept of association by order.

84.     Paragraph 4 also provides for limitations and exemptions to the Olympic association right, including reporting on, or providing information about, the Games.

85.     Paragraphs 6 to 9 create a Paralympic association right - analogous to the Olympic association right - offering protection to the Paralympic symbol, motto and associated words. Rights over Paralympic words or symbols which exist at the time that the Paralympic association right is created will be protected. This means that, for example, individuals or companies will be entitled to continue to use existing business names which use words which become protected under the Act.

86.     If the International Olympic Committee (IOC) or International Paralympic Committee (IPC) change their motto or symbol, the Secretary of State has power to amend by order that which is protected under the Act.

87.     Paragraph 11 raises the fine which can be imposed for committing an offence under section 8 of OSPA (infringement marketing of goods) during the period from 2 months after Royal Assent until 31 December 2012. In the Magistrates' Courts the maximum fine will be £20,000, which is higher than the maximum fine which Magistrates can normally apply. The section provides for higher fines because the offence is considered to be highly lucrative in the lead up to and during Games time.

88.     Paragraph 12 gives Trading Standards Officers enforcement powers in relation to offences under OSPA and allows LOCOG to make payments to local weights and measures authorities for any enforcement activity they carry out as a result of these increased powers.

89.     Paragraph 13 makes offences under OSPA an arrestable offence.

90.     Paragraph 14 gives Her Majesty's Revenue and Customs (HMRC) officers powers to detain OSPA infringing goods on entry to the UK. These provisions provide HMRC officers with largely analogous powers to those they already hold for trademark infringing goods.

91.     Paragraph 14 specifically provides for HMRC officers to seize goods either where they have notice in writing from LOCOG or the British Olympic Association, or the British Paralympic Association (the "proprietors") or where HMRC officers discover items during their ordinary course of business.

92.     Paragraph 14 also sets out the process for how the proprietors are informed about any seizures, how they are provided with samples and the time limits by which proceedings have to be brought in relation to any infringing goods.

Section 33 and Schedule 4: London Olympics association right

93.     This section introduces Schedule 4. Schedule 4 creates a specific event association right in relation to the 2012 London Olympic and Paralympic Games. It seeks to prevent those who use innovative ways of making an association with the Games (that is, who create an association with the Games without using specific words or symbols protected under trademark or under the Olympic Symbol etc. (Protection) Act) from doing so.

94.     Paragraphs 1 and 2 establish the principle of the London Olympics association right and define it as an attempt in the course of trade to create an association between services or goods or a person who provides good or services and the London Olympic or Paralympic Games. In particular, the concept of association is defined as where a person has created a commercial or contractual, or corporate or financial (eg sponsorship) link between a person, product or service and the Games. Paragraph 1 also makes clear that the London Olympic association right is not infringed by someone who simply makes a statement that accords with honest commercial practices.

95.     Paragraph 3 sets out words and phrases, the combination of which may be taken into account by a court when considering whether the London Olympics association right has been contravened. Sub-paragraphs (6) and (7) of Paragraph 3 allow the Secretary of State to amend the list of words and phrases by order - the order would be subject to the negative resolution procedure. Sub-paragraph (9) of Paragraph 3 requires the Secretary of State to consult representatives of the advertising industry, LOCOG and others before altering the list of words. This consultation would follow usual Cabinet Office guidelines as to duration.

96.     Paragraphs 4 and 5 provide exceptions to the London Olympics association right in relation to authorised use. In particular they allow LOCOG to grant authorisations where individuals (most likely to be sponsors of LOCOG and of the Olympic Programme) are given permission to associate themselves with the London Olympic Games. LOCOG will be under a duty to maintain a public register of those individuals who have been granted the right to associate with the London Olympic Games and may charge individuals in relation to those authorisations. Paragraphs 4 and 5 also allow LOCOG to grant class authorisations that they may grant to specific groups or types of people or organisations.

97.     Paragraphs 6, 7, 8 and 9 provide a number of exceptions to the London Olympic association right. These include specific reporting and information providing exemptions and exceptions relating to indications that describe (amongst other things) the purpose, quality or origin of a product or service.

98.     Paragraph 10 sets out the sections of the OSPA that will also apply to this new London Olympic Association right. These include provisions that protect existing rights and that permit the Secretary of State to issue directions to LOCOG in relation to the exercise of this right.

Section 34: Greater London Authority: powers

99.     This section enables the Greater London Authority (GLA) to play its part in delivering the 2012 Olympic Games. The section gives the GLA the power to do anything for the purpose of complying with the obligations which are placed on the Mayor of London in the Host City Contract (whether before, during or after the London Olympics), or to prepare for and manage the London Olympics.

100.     In exercising this power, the GLA shall have regard to the desirability of consulting and cooperating with the Secretary of State, the British Olympic Association, LOCOG, and anyone else with experience or knowledge which might be useful in relation to preparing for or managing the London Olympics.

101.     When undertaking actions to deliver the Olympic Games, the GLA must consider how best to maximise the benefits to be derived from the preparations for the London Olympics once the Games are over.

102.     The GLA is given particular powers to:

• arrange for the construction, improvement or adaptation of premises or facilities,

• arrange for the provision of services,

• undertake works,

• acquire land or other property,

• enter into agreements,

• act jointly or co-operate with any other person,

• give financial and other support to others for activity connected with the London Olympics,

• take action in respect of places outside London.

103.     The GLA may delegate its function under this section to the London Development Agency although the provisions of section 5(2) and (3) of the Regional Development Agencies Act (1998) shall apply: this means that the LDA will still be required to obtain the Secretary of State's consent for certain activities and its powers in relation to housing will still be restricted.