Legal action was taken by the AOC last year, following an "I go to Rio" marketing campaign run by Telstra.

The Olympic-themed drive was launched even though Telstra had ended its sponsorship with the AOC in 2015.

It featured a series of television commercials showcasing a version of the Peter Allen song I go to Rio, describing Telstra as "Official Technology Partner" of the Seven network.

A Federal Court ruled in favour of Telstra last year, despite the AOC claiming it was a "clear attempt to deceive Australians".

Telstra successfully argued the campaign originated from its partnership with the Seven network, with the AOC told to pay the company's legal costs.

The AOC appealed the decision to the Full Court, with the organisation claiming they were seeking to protect their partnership with Optus, Telstra's rivals.

In one of the AOC's biggest-ever national sponsorship deals, a 10-year agreement was confirmed with Optus in 2015.

It saw Optus, the second largest company of its kind in Australia behind Telstra, become the official telecommunications partner of the Australian Olympic Team for the next three Summer and Winter Games through to 2026.

The AOC have stated they will continue to protect their partnerships, despite suffering defeat in the Full Court.

"The AOC is disappointed with the result," AOC chief executive Matt Carroll said.

"Action was taken in this case in order to support our Olympic sponsors and in particular the investment made by our exclusive telecommunications sponsor, Optus.

"The judgment does not mean that businesses generally can engage in Olympic themed advertising.

"It dealt with very specific facts.

"Telstra had entered into an agreement with Channel Seven, the exclusive Australian broadcaster of the 2016 Rio Olympic Games and Telstra’s conduct was held to be permissible in that context.

"The Court viewed Telstra’s ads as suggesting sponsorship of Seven’s Olympic broadcast rather than of the Rio Games.

"The AOC receives no government funding and relies entirely on sponsorship to send our Olympic teams to the Games.

"It will continue to prioritise protection of the investment our sponsors make and to take action against those seeking to capitalise on the Olympic movement without authority."

The AOC have also stated that they value Seven as a long-term broadcaster of the Olympic Games and as a sponsor despite the verdict.

 The organisation claim they are looking forward to continuing to work with the channel as the Pyeongchang 2018 Winter Olympics approaches.