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B.A.F.F.L.E.D. Fashion Law

A Potential Way For More Designers To Monopolize Specific Style Characteristics…


By: Attorney India Rios

 

You want to know why Christian Louboutin is the only shoe designer who can use the color red on the soles of its shoes when the shoe itself is any color but the color red? I can sum it up for you in three words –Trade Dress Protection— a form of United States trademark law. Want to learn more about how Christian Louboutin was able to stop Yves Saint Laurent and any other design from making shoes with red soles unless the entire shoe will be red? First, let me give you a quick trademark law breakdown. 

 

The purpose of trademark law is to prevent consumer confusion. Labels let consumers know what to expect from a particular brand. Trademarks can be any word, symbol, sound, color, phrase, or combination used to identify and distinguish one source from another and help consumers identify the product in question

 



Trade dress protects the overall commercial look and feel of a product or service. Its range is extensive, and the protection extends to various elements of a product or product packagings such as the shape, design, color, and more. Trade dress takes its security one step further, and it allows trade dress protection for establishments with a distinct look and feel of a product or establishment. Still, like trademark protection, to be eligible for trade dress protection, the design must be distinct and nonfunctional. Essentially, distinct means unlike any others in the market place and nonfunctional as in the design is not required for the product or design to work. 

 

So now that we have gotten through that trade dress law blitz, let's get back to the questions before us:

 

(1) How was Louboutin able to stop Laurent and any other designer from making shoes with red soles unless the entire shoe is red?

 

(2) Why aren’t more designers using trade dress protection to create a monopoly in a specific brand recognizer for their designs?

 

(3) Is your brand eligible for trade dress protection?

 

In short, Louboutin’s iconic red sole has built up significant source recognition, which has resulted in the sole qualifying for secondary meaning. Furthermore, the design feature is distinct from amongst the fashion house's competitors. When people see a shoe with a red sole, they almost instinctively think that Christian Louboutin made the shoe. The soles, therefore, help the designer distinguish itself from its competitors. Trade dress protection at its core is about distinctiveness and source recognition. 

 

In the groundbreaking lawsuit between Louboutin and Laurent, Laurent wins the battle, but Louboutin won the war. The court ultimately determined that Louboutin was entitled to trade dress protection for their signature red soles. Yet YSL was allowed to make shoes with red soles as long as the entire shoe is red. The court further found that the Louboutin's trade dress, consisting of a red, lacquered outsole on a high fashion woman's shoe, has acquired limited "secondary meaning" as a distinctive symbol that identifies the Louboutin brand. Secondary meaning is the key to trade dress protection. Secondary meaning is a legal term of art that represents a designation given to trade dress that by itself is not necessarily inherently distinctive. However, the general consumer of that product has grown to associate that symbol with the brand its self. One generally does not acquire secondary meaning overnight. 

To take advantage of trade dress protection, a designer would need to (1) identify its signature designs and colors and (2) use the designs and colors in a manner that makes the designer's brand distinguishable from others similarly situated in the marketplace. The best way for a designer to posture their brand for trade dress protection is to implement these design characteristics early on in its lifetime. Building brand recognition is a slow grind, and the road to trade dress protection is a long road. The length of the process leaves many designers vulnerable to design pirates.  

 

Ultimately, whether your designs are eligible for trade dress protection will depend on whether your designs have source-identifying characteristics. Acquiring trade dress protection can be a long process, and the protection offered can be minimal. For example, in Louboutin, the court found that the red sole alone was protectable when the shoe itself was not all red. To obtain trade dress protection for your designs, one would have to wait until you have acquired secondary meaning. Additionally, you will need to use other forms of intellectual property protection for the design parts that trade dress protection will not protect. The narrow protection trade dress protection provides, paired with the cost and amount of time it takes to obtain trade dress protection, make it an unattractive choice for many designers. 

 

 

  



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V., J.D. V., J.D.

B.A.F.F.L.E.D. Fashion Law

Business and Legal Tips for the Emerging Designer--

Just this past Friday, I got the magnificent opportunity to sit on a fashion law panel, hosted by the Fashion Law Society at John Marshall Law School in Chicago.  It was a great event, and now the 3rd time I've presented at one of their Symposiums.  Always a great time.


As I, and the 3 other attorneys on the panel took questions, we were asked everything from the best way to set up a fashion business, to the means for protecting a brand once it's up and running.  We gave many tips and cautions, but it reminded me of the information right here to share with designers and brand managers for protecting what's rightfully yours.  

Here are some of the tips we've shared in the past.  Take a look, and let us know what else you'd like to see.  

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V., J.D. V., J.D.

B.A.F.F.L.E.D. Fashion Law

Technology One-Ups Counterfeits--

Just when the counterfeit market thought it was gaining, particularly with retail experiencing a stumbling block, technology has stepped in to do what it does best--change the game.  To fight back against fakes in the market, the folks at Entrupy created a scanner to determine the real from the fake.

Obviously you can train a machine to do almost anything these days.  Now, this machine-learning system can scan an item and with up to 98.5% accuracy, determine whether it's the real deal or just another really good copy.  As you know, goods are in the market in 4 different classes.  This device will be able to separate the 1s from the 2s with almost complete certainty.  Because of its advanced technology, it will also be improving its accuracy with every use.  


Entrupy won't be marketed to the individual consumer, but primarily geared toward retailers looking to ensure they are selling genuine products, and not gray market goods--those made in legit factories, but outside contracted terms.  This device will also put gray marketers on the defense, forcing them to find ways to defeat the system.  The goal of the scanner is to ensure trust in what consumers are purchasing.  

"We built Entrupy as a scalable and versatile platform in response to the rapidly growing counterfeiting issue and need for trust when it comes to product transactions." Vidyuth Srinivasan, Entrupy's co-founder told Digital Trends.  

This device will most certainly give the gray market a run for its money.  It may press legislators to act on further protecting designs as well.  


For more on gray market goods, click here.  


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V., J.D. V., J.D.

B.A.F.F.L.E.D. Fashion Law

SCOTUS Changes Fashion Law Forever--

Until now, no case hailing from the niche of fashion law had stepped onto the U.S. Supreme Court stage.  A decision this week has changed that.

The Star Athletica v. Varsity Brand case has become a trailblazer for copyright in the fashion industry. Just yesterday, the SCOTUS found decorative items--specifically those common on cheerleading uniforms--to be protectable under copyright law.  This ruling is contrary to years of cases in lower courts, where opinions have continuously determined decorative elements of clothing were inseparable from the garments themselves.   

In the only apparel-related case to ever come across the docket, the Supreme Court made a determination which could change the fashion industry forever.   Law360 noted, "The question before the justices was how courts should decide when such “separability” exists, an issue that has split lower courts. Fashion companies pushed for a looser approach that would allow them to protect more apparel with copyrights; consumer advocates called for a tighter approach, meaning less protection and more competition."

The fashion companies won. 

With this ruling, designers now have a gateway to protecting the artistic elements of their designs, and drawing a long-awaited distinction between their unique work, and a useful item (clothing).  Surely this case will set the stage for more litigation, as designers will have firm ground to stand on when exercising their vigilance in protecting their work. It may also set the stage for shocking the conscious of the counterfeit market. 


This has been quite the fight for those of us knee-deep in the fashion law industry.  What will fashion law conquer next?



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V., J.D. V., J.D.

B.A.F.F.L.E.D. Fashion Law

Beverly Hills Fashion Law Symposium 1/12!

Fashion Forward: Wearable Technology, Design Patents, Privacy, and the latest Fashion Law Cases--

It's time again for some fab fashion law symposiums!  Well, it's actually always time, but the next one is fast approaching.  The fashionable folks at the Beverly Hills Bar Association are hosting a wonderful panel discussion this coming Thursday!  Some fashion law faves will be presenting, so we know it's sure to be a good time.  

Check out the details below and register NOW!!






     
IP, Internet & New Media Sections
Present
Fashion Forward: Wearable Tech, Design Patents, Privacy, and the latest Fashion Law Cases! 
Learn the latest in fashion law innovations: Wearable technology and where it is headed, how to use design patents as protection, privacy issues in the fashion industry (who is monitoring you!), what you need to know about FTC issues regarding sponsored products in fashion blogs, plus the Varsity case which is on deck to be heard by the Supreme Court in 2017!

Speakers:

Victoria Burke, Esq. Director of Business Development, Raw Science TV

Craig Gelfound, Esq. Partner, Head of Arent Fox's Intellectual Property Group (LA office) and Adjunct Professor at Southwestern Law School

Danielle Garno, Esq. Shareholder, Greenberg Traurig LLP-  Fashion Law Practice

Hillary Kane, Esq. Professor of Fashion Law at Southwestern Law School, of Counsel at altView Law Group, and Founder of Raising Kane Consulting
When: Thursday, January 12, 2017, 12:00 pm to 2:00 pm (Program at 12:30pm) 
Where: Lawry's the Prime Rib (DirectionsFree Underground Parking)
$0 - Members of The Order of Distinguished Attorneys 
$45
 - BHBA Members who pay in advance*
$245 - Non-BHBA Members who pay in advance*   
Interested in Membership? Try it Free, No Commitment, for 30 days 
Azita Mirzaian, Esq. & Michael Lovitz, Esq - Section Co-Chairs 
Martin Keleti, Esq. - Vice Chair   |   Victoria Burke, Esq. - Program Chair
* Advanced registration closes 24 hours prior to event time. Registrations received thereafter include a $25 additional fee. Full refund with 48 hours notice. Raincheck with 24 hours notice. 

This activity has been approved for Minimum Continuing Legal Education credit by the State Bar of California in the amount of 1.5 Hours of Participatory Creditand the Beverly Hills Bar Association certifies that this activity conforms to the standards for approved education activities prescribed by the rules and regulations of the State Bar of California governing minimum continuing legal education.
 
Copyright © 2016. All Rights Reserved.
Beverly Hills Bar Association, 9420 Wilshire Boulevard, Second Floor, Beverly Hills, CA 90212-3169
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B.A.F.F.L.E.D. Fashion Law

Same Shirt, Different Name--Zara Sued (Again) for Copying--

Zara was just sued by the socially-conscious brand, Reformation for infringing on their model-moniker-bearing sweatshirt design.  Reformation previously sold a plain grey sweatshirt with model Cindy Crawford's name across the chest.  Zara is now selling a similarly styled shirt--but bearing the model Elle Macpherson's name.  

Zara still has the shirt up for sale on their site, though a cease and desist letter has to be in transit as we speak.  There are clearly some trademark and even publicity rights issues on hand here as well.  Who knows if Elle approved of the shirt.  Reformation actually got permission from Cindy Crawford for the sweatshirt bearing her name.  She posed for promos.


This will be interesting...yet familiar territory for Zara.  They've been sued in the past for copying, namely by Christian Louboutin.  Tom Ford has expressed frustration in being copied by Zara--Dior, Celine, and Kenzo have been aggravated as well.  

Here they go again.



  
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V., J.D. V., J.D.

B.A.F.F.L.E.D. Fashion Law

Fab Fashion Law News from 2015--

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It's the time of year--and frankly the last day--do to these listicles discussing the year that was.  While we've retired our weekly Tuesday Tops feature (which still has great stuff to check out), we still like the idea of compiling solid, handy lists.  

Since fashion law is our specialty, and we want you to stay as up-to-date as possible on our favorite field, we're listing the Top Fashion Law Stories of 2015.  Let's hit it backwards, starting with last week...
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Fashion Law Is Back on Capitol Hill--Child Labor Laws for Fashion Shows










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Can't wait for more fashion law news in 2016!


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V., J.D. V., J.D.

B.A.F.F.L.E.D. Fashion Law

Big Brands Keep Fighting Fakes--

Counterfeits are making waves in the fashion industry and it's nothing good.  In recent months, designers have had to step their protection game up in several ways, just to keep the infringers at bay.  As reported earlier this week, Christian Louboutin, Jimmy Choo, Celine and others have sought a slew of design patents to protect their creations.  


The lack of copyright protection in America makes protection a bit of a challenge.  Trade dress, trademark, and patents are heavily depended on, but take some time to secure.  Stella McCartney had to sue Steve Madden for infringement on her "Falabella" bag--a bag already holding 2 design patents for its continuous chain design.  Tory Burch also came up big recently in fighting for her "Isis Cross" trademark. She won $38.9M in a lawsuit against Lin & J to protect her trademark.  Despite claiming victory over YSL, Louboutin is still awaiting trademark validity from the EU.  This stems from their 2013 battle with Van Haren infringing on the red soles.  

While keeping us showered with designs for the new season, designers have to keep an eye on the counterfeit market.  According to NetNames, a London-based brand protection firm, counterfeiting is getting a consistent boost from e-commerce, channeling sales up about 15%.  Much of the items are sourced through China--nearly 70%.  The raw materials are there.  The factories are there. And, the labor is pretty inexpensive.  An NYC couple was was just charged with conspiring to traffic counterfeits after being caught with over 130,000 counterfeit items in their rented warehouse.  Many of the goods were said to have been sourced from China.  It's the largest source, but certainly not the only.   

Counterfeiting is about 2% of world trade--equating to about $1trillion, according to the International Chamber of Commerce.  Make no mistake, many purchasers of counterfeits were never going to purchase the real thing anyways.  But, some were, and got bamboozled.  Whether they were looking for the real thing or just something to pass at a quick glance, the harm done by fakes doesn't change.  There's a cost far greater than the black market price. 


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V., J.D. V., J.D.

B.A.F.F.L.E.D. Fashion Law

Louboutin Adds Protection with Design Patents--

Fab shoemaker Christian Louboutin is always working to protect his brand.  His latest attempt has been obtaining a design patent for his spiked toe design.  He's already overcome the red sole battle, and is now continuing on in making sure there's no confusion as to what belongs to him and only him.

In addition to the spiked toe patent, CL has about 10 others.  His design patents include some of his lace-up boots and stuffed flats...surely more are to come.  Be careful doing your fall and winter shopping.  There's likely to be fakes out there.  Christian isn't the only one protecting his brand with every design protection option possible.  Jimmy Choo, YSL (a former Louboutin opponent in court), and Celine are just a few others also taking the protection to the next level.





With the counterfeit market grossing in the billions, no chances can be taken! 


For more on Intellectual Property Basics, click here.  And for a plethora of fashion law news and tips, click here


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V., J.D. V., J.D.

B.A.F.F.L.E.D. Fashion Law

Victoria's Secret Loses Its Pink--

In a recent London-based lawsuit, the famous lingerie line lost their ability to use the "Pink" trademark.  Victoria's Secret, an L Brands line, was sued by Thomas Pink, an English brand specializing in dressing men for work and formal events.  While you can find Thomas Pink items in America at various retail stores like Macy's, the brand thought VS's use of "Pink" brought confusion to the market.


A trademark is a symbol used in the market to signal the source, and often quality, of goods.  Popular trademarks are often registered with their respective nation's trademark office, and provide protection to the brand.  Thomas Pink accused Victoria's Secret of infringement based on confusion, claiming the separation of brands may not be distinct enough to shoppers seeking ties and dress shirts--not hoodies and panties.  

The men's line was delighted to find a judge agree the trademarks were too similar for comfort in this global market.  We are delighted with the outcome of this case, and will continue to protect the considerable investment that has been made into building Thomas Pink into a leading luxury clothing brand,” Jonathan Heilbron, the company’s chief executive officer said.  

This outcome could set the pace for stricter regulation of trademarks.  Brands are taking advantage of both vertical and horizontal integration, so the selection and use of names in a global market largely dependent on internet and social media is increasingly difficult.  Of course Victoria's Secret believes the clear distinction in customer base alleviates any confusion between the 2, but for now, they'll have to figure out some other mark for their varsity line.  Any ideas?



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